The tribe of salaried and retired senior citizens whose total income exceeds the taxable limit of Rs 40,000 have to file their income tax returns by the due date. The income tax law makes it mandatory for every one whose total income is more than Rs 40,000 to file his return of income as per section 139(1). The position does not change even if their employers have deducted the necessary tax at source, or tax has been deducted on the income from interest and other sources. This article clears some of the myths and wrong notions on the issue.Do I have to file the income-tax return when I am only having salary income and all my tax has been deducted at the source by the employer? Yes, you have to file the return even if the tax has been deducted at source by the employer. The employer while deducting tax is doing his duty as stipulated under the law. He is not doing something which you have to do. The annual return of salary he files with the TDS officer in Form No 24 is the information he has to furnishunder law to ascertain that he has deducted correct taxes from the salary of his employees. You have to separately obtain the certificate in Form No 16 from the employer and furnish the IT return in the prescribed form. The notion that once tax is deducted by way of TDS the salaried class need not file the return is incorrect.
In which form do I have to file the return?
All the salaried people and the assessees earning income from other sources have to file the return in the Form No 3. They can use Form No 2A if their income is less than Rs 2 lakh.
What is the last date of filing the return?
The last date of furnishing the return for the salaried class and the assessees who are having income from other sources is June 30, 1998.
Under which Section is it mandatory to file the return?
The Section 139(1) of the IT Act specifies that every person whose total income is more than Rs 40,000 has to file his return of income. It states: ``Every person if his total income or the totalincome of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income tax shall on or before the due date furnish a return of his income or the income of such other person during the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.''
What is total income? Are any deductions allowed in computing taxable income?
As per the law, the total income means the income after deducting the standard deduction under Section 16, allowing deduction under section 80 L for bank and UTI dividends, under Section 80 G for donation to charitable institutions, under Section 80 D for mediclaim, under Section 80 U for permanent disability, etc.
Do I necessarily have to obtain a permanent account number?
Yes, as per law every person whose income exceeds the maximum amount which is not chargeable to tax has to apply for the newcomputerised Permanent Account Number (PAN).
The I-Tax Department is equipped with computers and will be easily able to identify the defaulters. It is advised that the people whose income exceeds the threshold limit of Rs 40,000 per annum should file their returns otherwise they have to pay heavily. The department is in the midst of a massive computerisation drive for storing data to help it widen the tax base. Its investigation wing is collecting information from various agencies to issue notices to all those evading the tax till date.
(The Jindals are Delhi-based chartered accountants)
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
