CONSEQUENCES OF DELAY/NON-FILING RETURN OF INCOME

1. Where there is a delay in filing the Income tax return, an interest at the rate of 2% for every month or part of the month is chargeable u/s. 234A of I.T.Act, 1961 from the date immediately following the due date to the date of actual furnishing of the Return.
2. Where no return is furnished by the assessee the assessing officer may issue a notice compelling assessee to file return of Income.
3. The interest u/s. 234A is chargeable on the amount of tax as determined on regular assessment or under section 143(1) as reduced by the advance tax paid by the assessee and the tax deducted or collected at source. The additional tax payable u/s. 143(1A), if any, will not be included in the amount of tax as referred to above. The interest chargeable will also be reduced by the interest u/s. 234A, if any already paid under section 140A (self assessment tax). There is no provision under the I.T.Act for waiver or reduction of interest in individual cases except on reduction of the tax in appeal, revision or rectification.
4. Failure to turnish return of income may lead to prosecutionander 27CC of the act.

CONSEQUENCES OF NON FILING RETURN OF INCOME BASED ON ECONOMIC INDICATOR

Non-filing of return will attract penalty of Rs.500/-

PRESCRIBED FROMS FOR FILING INCOME TAX RETURNS

I	Form No.1	Companies other than those claiming exemption under section 11 of the I.T.Act, 1961.
I I	Form No.2	Assessees other than companies and those claiming exemption u/s. 11 of the I.T.Act, 1961 and whose total income includes `Profits and gains of business or profession’.
I I I	Form No.2A	Resident individual assessees having income from any source other than business or profession, if the total income does not exceed Rs.1.20 lakhs and if there is n brought forward or carry forward loss except under house property.
IV	Form No.2B	Assessees in whose case search and seizure operation has been carried out w.e.f.1.8.95
V	Form NO.2C	Assessees are required to file return of income based on Economic Indicators.
VI	Form No.2D	Non corporate assessees,other than persons claiming exemption under section 11 of the act
VII	Form No.3	Assessees, other than companies and those claiming exemption u/s.11, whose total income does not include `Profits and gains of business or profession,.
VI	Form No.3A	Assessees, including companies, deriving income from properties held for charitable or religious purposes claiming exemption under section11.

WHERE I.T. RETURN SHOULD BE FILED

As existing assessee is required to file the Return where he was last assessed or with the assessing officer to whom his case is transferred. A new assessee should file the Return with the assessing officer having territorial jurisdiction over the area where he resides or his principal place of business is situated or with the assessing officer having special jurisdiction over specific assessees or classes of income. For example, where the major source of income of an assessee is the income from contract business, the I.T. return should be filed with the assessing officer having jurisdiction over the contractor circle. A doctor or lawyer or an advocate should file the returns in professional circles, if any, specified.

The Return maybe delivered at the counter in the concerned Range/Circle or it maybe sent by registered post. The return is attached with two acknowledgement forms, which should be duly filled in by the assessee. One copy of the acknowledgement form is to be returned by the official at the counter duly signed, stamped, numbered and dated in support of having received the return. Incase of any doubt or problem, the taxpayer should contact the Public relation Officer for guidance.

WHO CAN SIGN AND VERIFY THE INCOME TAX RETURN?

 

1	Individual	the individual himself; where he is absent from India, or for any other reason it is not possible for the individual to sign the return, by any person duly authorized by him in this behalf by a valid Power of Attorney which should be attached to the return; where he is mentally incapacitated from attending to his affairs, by his guardian or any other person competent to act on his behalf.
2	Hindu Undivided Family	By the Karta or where he is absent from India or is mentally incapacitated from attending to his affairs, by any other adult member of such family.
3	Company	Resident: Managing Director or where there is no Managing Director of he is not able to sign and verify the return due to any unavoidable reason, by any director thereof. Non-resident: The return maybe signed and verified by a person holding a valid Power of Attorney from the Company which should be attached to the return. Wound up/taken over by the Govt. The return should be signed and verified by the liquidator or the Principal Officer as the case may be.
4	Firm	Managing Partner, or, where there is no Managing Partner or due to some unavoidable reasons, he is not able to sign and verify the return, by any partner thereof, not being a minor.
5	Local Authority	Principal Officer.
6	Other Associations	By any member of the Association or the Principal Officer thereof.

ANNEXURE/DOCUMENTS TO BE ATTACHED TO I.T. RETURNS

Evidence for Pre-paid Taxes :

1. Certificate for tax deducted at source (TDS from Dividend, salary income etc.)
2. 4^th Counter foil for the payment of following taxes :

1. Self assessment tax
2. Three instalments of advance tax.

Other Documents :

1. Copy of Trading, Profit &Loss Account, Balance Sheet if total income includes `profits and gains from business or profession’ where regular books of account are maintained.
2. Evidence for the payment of LIC/ULIP premium, N.S.C., N.S.S. etc.
3. Report u/s. 44AB.
4. Other documents required to be attached to the return of income under the specific provisions of the law.
5. The documents mentioned in the NOTES attached to the return of income.

Income tax return is a legal document and the assessee with due care and caution should fill it in. There should be no errors or cuttings in filling up the I.T. return and it should be properly signed and verified by as person who is authorized to do so under the provisions of I.T.Act. Following important points may be taken case of while filling up the Income Tax Return:

Name and address :

The name and address must be written in block letters and while filling up the same in the cages meant for the same, one cage may be left blank after each word. As the Income tax returns are to be filled on the basis of territorial jurisdiction, any mistake in the address may dislocate the return which will cause undue delay in finalization of the assessment.

Assessment Year :

The assessment year may be correctly filled n Col. No.2 of the Income Tax return.

Revised Return :

Proper particulars of the original return may be mentioned in Col. No.3 in case the I.T. Return is a revised return.

PAN/G.I.R. No.:

The assessee’s PAN/GIR No. maybe correctly filled in Col. No.4 so that the return reaches the concerned assessing officer.

Status :

Correct Code Nos. of the assessee’s status/residential status maybe filled in Col. Nos. 6& & as per the NOTES attached with the I.T.Return.

Evidence for prepaid taxes :

The original T.D.S. certificates and challans for the payments of advance tax and self assessment tax should be attached with the; I.T. Return and proper details may be filled in Part II of the return under the head – STATEMENT OF TAXES. These documents maybe lis5ted in Part-IV or V of the I.T. Return under the head – LIST OF DOCUMENTS/STATEMENTS ATTACHED. The total number of documents may also be filled in Col.22 of Acknowledgement Form.

Documents/Annexure attached :

The other documents/Annexure may be properly listed in Part IV or V of I.T. Return under the head – LIST OF DOCUMENTS/STATEMENTSATTACHED and the total number of documents may be properly filled in Col. No.23of the Acknowledgement Form.

Income Claimed Exempt :

The particulars of income which is not included under any heads of income-A to D/E and claimed as exempt from tax must be mentioned in PART II OR IV of the I.T,. Return under the head – INCOME CLAIMED EXEMPT.