What you must know before filing income tax return in India
Filing an ITR is mandatory for every Indian citizen. We all know that. While the same might seem like a tough task to do, the government has an array of forms available to make ITR filing as simple as possible for common Indian citizen.
To begin with, the process can now be done online which makes it much more convenient to file your returns. But filing an ITR is not as easy as it may seem to some people, leading them to approach ITR consultants and experts to make it less confusing.
Whether you plan to hire a Chartered accountant or proceed to file your ITR on your own, here are some pointers that you must be aware of:
- If you are a working individual from corporate sector, you need to fill Form 2D. if you are self-employed, you have to go for Form 2.
- An individual who does not have a PAN number is supposed to fill up Form 60.
- Form 2B on the other hand is for people with a case of block periods due to confiscation cases.
- It is also mandatory to fill up Form 60 in the following cases:
- You have share purchases of more than 10 lakh
- If you have made a down payment in cash for purchase of a new vehicle
- In case you are opening a new bank account
- In case you have made a bill payment of INR 25000 or more in hotels and restaurants
5. According to the Hindu Undivided Family Act, you also need to fill up Form 2E considering you do not have any agricultural income or operating any business.
Income Tax Return verification in India
The ITR filing has to be verified. It is important that the person who is verifying the ITR fulfils the requirements under Section 140. Separate authorities are mandated for different concerns.
For instance, an ITR for small, medium and large businesses has to be signed by the Managing Director of the company. In case the Managing Director is not available to sign, the same can be signed by any directors of the company.
For an NRI company on the other hand, the verification process can be performed by someone who has the power of attorney. There are also many experts available for NRI return filing.
For tax returns by a political party, the returns must be filed by the secretary of the party himself.
happens if you do not file ITR?
Filing an ITR is mandatory for every citizen of India and a failure to do the same can attract penalties. There is a charge of 1% interest for every month you delay the filing. If you file the returns at the end of next year, you are liable to pay an additional fine of INR 5000 along with accumulated per month interest.