Income Tax Returns
Every assessee should file an annual return in prescribed form. The prescribed forms are as follows -
FORM NO. 1 - For Companies
FORM NO. 2 OR 2D - Firms, HUF, Individuals whose income includes ‘profits and gains of business or profession’.
FORM 2C – Those who are required to file return even if income is below taxable limit under proviso to section 139(1) – termed as 1 by 6 scheme.
FORM 3 or 2D - This form is mainly for resident individuals and HUF who do not have any income from business or profession.
In addition to the return, an acknowledgment form in duplicate is required to be submitted. The ‘acknowledgment’ is really summary of the income tax return. The duplicate of acknowledgment is returned by income tax department duly acknowledged. This serves as proof of the details of income submitted by assessee.
The income tax return is really a self assessment memorandum. The assessee should calculate the tax and interest payable by him and pay it by challan. The payment will of course be after deducting the advance tax which he might have already paid.
The return should be accompanied by * Salary certificate * Profit & loss account or income and expenditure account in case of business / professional income * Details of income from house property e.g. municipal valuation / rent received / taxes paid etc. * Copies of proofs in respect of investments made which qualify of income tax rebates * Copy of audit report if his accounts are required to be audited * Tax deduction certificate, if any tax was deducted when he had received the payment * Copy of challans of advance tax * Copy of challan of self assessment tax.
It is a practice to submit a summary sheet giving details of computation of income and tax payable, though such summary sheet is not a legal requirement.
The due dates for filing return are as follows -
* (a) Individuals having only salary income (b) Non-corporate assessees (Individuals, HUF, partnership firms or societies) having income from business or profession but who do not have to get their accounts audited under Income Tax or any other law - 31st July
* (a) Non corporate assessees (Individuals, HUF, partnership firms or societies) having income from business or profession and who have to get their accounts audited (b) A working partner where the firm in which he is a working partner has to get its accounts audited (c) Corporate Assessee (d) Persons who have to file return under one by six scheme – 31st October
The dates are mandatory and there is no provision to extend the due date. If the return is filed beyond due date, mandatory interest @ 1.25% per month of tax due is payable. Belated return upto one year beyond due date is permissible. Mandatory interest @ 1.25% is payable, but no penalty is payable. Thus, if no tax was due, belated return upto one year can be submitted without payment of any interest.
A loss return must be filed in time. Otherwise, the carry forward of loss is not permitted. However, CBDT can grant extension for submitting return by a loss making company.
The return should be signed by individual, karta of HUF, managing partner, managing director etc. In some cases, return can be signed by authorised representative.
The return should be filed along with proof of payment of tax, interest. Payment should be by self assessment challan.
No intimation will be sent by Income Tax Officer, if any tax / interest / refund is not due on the basis of return of income / wealth filed.
Scrutiny of returns - Some of the returns are taken by ITO for detailed scrutiny. Notice for scrutiny has to be served within 12 months from end of the month on which return is furnished. The ITO can require assessee to attend his office or produce evidence in support of the return filed. The assessment must be completed within two years from end of the relevant assessment year.
PAYMENT OF TAX - The advance tax and self-assessment tax should be paid vide challan No ITNS 268 (0020) in respect of corporates and ITNS 270 (0021) in respect of others.
Every assessee should file an annual return in prescribed form. The prescribed forms are as follows -
FORM NO. 1 - For Companies
FORM NO. 2 OR 2D - Firms, HUF, Individuals whose income includes ‘profits and gains of business or profession’.
FORM 2C – Those who are required to file return even if income is below taxable limit under proviso to section 139(1) – termed as 1 by 6 scheme.
FORM 3 or 2D - This form is mainly for resident individuals and HUF who do not have any income from business or profession.
In addition to the return, an acknowledgment form in duplicate is required to be submitted. The ‘acknowledgment’ is really summary of the income tax return. The duplicate of acknowledgment is returned by income tax department duly acknowledged. This serves as proof of the details of income submitted by assessee.
The income tax return is really a self assessment memorandum. The assessee should calculate the tax and interest payable by him and pay it by challan. The payment will of course be after deducting the advance tax which he might have already paid.
The return should be accompanied by * Salary certificate * Profit & loss account or income and expenditure account in case of business / professional income * Details of income from house property e.g. municipal valuation / rent received / taxes paid etc. * Copies of proofs in respect of investments made which qualify of income tax rebates * Copy of audit report if his accounts are required to be audited * Tax deduction certificate, if any tax was deducted when he had received the payment * Copy of challans of advance tax * Copy of challan of self assessment tax.
It is a practice to submit a summary sheet giving details of computation of income and tax payable, though such summary sheet is not a legal requirement.
The due dates for filing return are as follows -
* (a) Individuals having only salary income (b) Non-corporate assessees (Individuals, HUF, partnership firms or societies) having income from business or profession but who do not have to get their accounts audited under Income Tax or any other law - 31st July
* (a) Non corporate assessees (Individuals, HUF, partnership firms or societies) having income from business or profession and who have to get their accounts audited (b) A working partner where the firm in which he is a working partner has to get its accounts audited (c) Corporate Assessee (d) Persons who have to file return under one by six scheme – 31st October
The dates are mandatory and there is no provision to extend the due date. If the return is filed beyond due date, mandatory interest @ 1.25% per month of tax due is payable. Belated return upto one year beyond due date is permissible. Mandatory interest @ 1.25% is payable, but no penalty is payable. Thus, if no tax was due, belated return upto one year can be submitted without payment of any interest.
A loss return must be filed in time. Otherwise, the carry forward of loss is not permitted. However, CBDT can grant extension for submitting return by a loss making company.
The return should be signed by individual, karta of HUF, managing partner, managing director etc. In some cases, return can be signed by authorised representative.
The return should be filed along with proof of payment of tax, interest. Payment should be by self assessment challan.
No intimation will be sent by Income Tax Officer, if any tax / interest / refund is not due on the basis of return of income / wealth filed.
Scrutiny of returns - Some of the returns are taken by ITO for detailed scrutiny. Notice for scrutiny has to be served within 12 months from end of the month on which return is furnished. The ITO can require assessee to attend his office or produce evidence in support of the return filed. The assessment must be completed within two years from end of the relevant assessment year.
PAYMENT OF TAX - The advance tax and self-assessment tax should be paid vide challan No ITNS 268 (0020) in respect of corporates and ITNS 270 (0021) in respect of others.