Tax Filing in India

  Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating[0/5]Total Votes [  ]  
  Rate this page:
Tax filing in India has become mandatory for any individual whose income falls under the pre-determined tax slabs published in the budget in of that specific year by the central government. The government of India issues guidelines for the filing of income tax returns from time to time as per the changes incorporated.

Time for Tax Filing in India:



Generally, the time for tax filing in India has been fixed as July 31 every year, while March 31 is considered the end of each fiscal year. The central government allows substantial amount of time - nearly 4 months - after the year end to help the companies, individuals, and partnership firms file their respective income tax return for the year. However, there is an exception made in case of individuals as well as firms whose books of accounts have to undergo the process of auditing as per the Income Tax Act, 1961. Such individuals as well as firms have been provided with more time to file their tax returns after the year end by the central government itself and the last date for the submission of their income tax return is settled as 31st of October every year.

Documents for Tax Filing in India:



Various documents are required for the filing of income tax return of an individual or a trade firm and tax consultants can be of immense help to assist in the proper filing of income tax returns. The first document of tax returns in case of salaried persons is Form 16 as this form gives a clear idea about the income of the individual through salary payment. The most important aspect is that the individual comes to know about the deductions from his salary for the purpose of income tax done by the respective employer.

Form 16A is for those people who have fixed deposit accounts with banks or have invested their funds in any scheme run by a company. In case of such investment or fixed deposits, the concerned bank or the company will deduct the tax amount from the interest or dividend payment and all the details of tax deductions will be provided in Form 16.

The filing of tax return also includes details of bank accounts which will contain information about the earnings in a specific year and particulars about all the expenditures made in the same year. In case the tax payer has purchased a new property in the year then he needs to furnish the particulars of rent received as well as municipal tax receipts of the year. In case the tax payer has purchased the property by taking a loan then the respective individual is required to provide loan details accompanied with the certificate of interest of that specific year. The other documents include sale bills, contract note for assets sold, and purchase bills.

Income Tax Return Form for Tax Filing in India:



The government of India has classified the income tax forms into various kinds like the income tax return Form 1 is for salaried individuals, for income received through agricultural activities or through pension. The same form is also applicable for individuals who enjoy interest income. The income tax return Form 2 is issued for individuals as well as the members of a Hindu Undivided Family who are engaged in any business or act as partners in partnership firms. The income tax return Form 3 are issued specifically for individuals as well as members of Hindu Undivided Family who act only as partners partnership firms and do not operate any other business apart from the partnership firm. The income tax return form 4 applies for individuals as well as members of a Hindu Undivided Family who are engaged in a business under a proprietary company.

Penalties Suffered in Tax Filing in India:



According to the requirements of tax filing in India, in case the tax payer is not able to file his tax return on time for some reason, he will be required to bear a penal interest rate of 1% for every single month of delay and in case the tax return is filled after 31st March of the next year, the tax payer is required to pay a penalty amount as high as ` 5,000 in addition to the penal interest for all the months of delay.

>> More About India Tax