Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: cpt :: TDS :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: form 3cd :: due date for vat payment
 
 
« General »
 The differences between tax and cess
 Startups that raised funds from angel investors face tax scrutiny
 Tax collection assumptions in India's budget ambitious
 All scrutiny cases, sans search, to be e-assessed
 Key tax changes that will come into effect from April 1
 Eight lakh companies on Income Tax department radar for not filing tax returns
 4 things a taxpayer shouldn’t miss
 Impact on LTCG will be more than 10 per cent
 Here's how much the tax reliefs you want will cost the finance minister
 Companies (Appointment and Qualification of Directors) Amendment Rules, 2018
 How young earners can claim HRA tax exemption with ease

File Income Tax returns in spite of relief
July, 29th 2011

With just two days left to file income tax returns, taxpayers falling in the Rs 5-lakh bracket and earning less than the Rs 10,000 limit, have the option of not filing their returns. However, there are a number of reasons why you should file.

An Income Tax Return (ITR) receipt is an important document because it is more elaborate than Form 16 the other important document for salaried individuals. Reason: Form 16 shows salary from only one employer and the tax deducted by it. Whereas, ITR also shows income from other sources also, including investments, which one might not have disclosed to the employer. In effect, is a more realistic depiction of the individual's monetary position.

If you have decided not to file returns on or before July 31, heres why you should revisit your decision:

Borrowing: While applying for a home loan, many banks make do with your Form 16. But, according to industry experts, if you arent getting a loan or not as much as you want, then handing over the last three years of ITR receipts will help. The ITR gives a sense of the borrowers total income and his/her ability to support the loan repayment.

Nihar Jambusaria, National Head Tax Advisory Services, BDO India, says: Home loans can get rejected if banks think your income cannot support it. Here, ITR can help, as your total income is stated there (Form 16 only has income from one employer).

International travel: When travelling abroad, consulates ask you to furnish ITR receipt of the last couple of years at the time of the visa interview, says Homi Mistry, tax partner, Deloitte, Haskins and Sells.

Some embassies may ask for the last three years of ITR, while others may ask for the most recent certificate.

Experts suggest when travelling abroad, whether on a business trip or on a holiday, income-related proofs should be carried along, such as salary slip, Form 16 and ITR receipt. Consulates specify these requirements in most cases.

Government tender: Jambusaria says if you plan to start a business and you need to fill government tender for the same, you will need to show your tax return receipts of the previous five years.

However, this is not a law. This may vary according to the internal rules of the government department and the number of ITRs required may also vary. This again, is to show your financial status and whether you can support the payment obligation or not.

Self-employed: Businessmen, consultants and partners of firms do not get Form 16. And, hence, ITR becomes a must for such individuals, if their income exceeds the basic exemption limit of Rs 1.60 lakh. For any financial transactions, ITR will be their only proof of income and tax payment.

Last, if you have a refund due from the Income Tax Department, you will have to file returns, without which you will forgo the amount.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Team

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions