Income Tax Return for Business

Every person is liable to pay tax in India if his Income is more than the income notified by the government in the slab rates. Here the definition of person includes, • An Individual • A Hindu Undivided Family(HUF) • A Company • A Firm • An Association of Persons (AOP) or a Body of Individuals (BOI) • A Local Authority • Artificial juridical persons

Now the processing of return filed will be through Aadhaar Number, where, you can link your Aadhaar Number with your PAN and get rid of sending ITR V to CPC, Bangalore.

Yes, a person must have PAN to proceed for filing the income tax return.

For electronic verification of return, a code (EVC) is generated. EVC will be a unique number linked to assessee’s PAN. One EVC can be used to validate one return, irrespective, of assessment year or type of return.

Taxpayers can generate EVC by any of the four ways given below: • Through E-filing Website of Income Tax Department • Through Net- Banking • Through Aadhaar number • Through ATM

With e-filing income tax return, the processing speed is kicked up and secures personal information, get instant notification of Income Tax Return receipt, check the status of tax return or tax refund and get acknowledgment receipt immediately.

26AS is a consolidated statement showing the tax credit associated with our PAN. It shows how much tax has been received by the government by way of TDS deposited by the deductor (employer, bank) on our behalf, Advance tax deposited by us, self-assessment tax deposited, etc. It is important to match tax payments and TDS deducted with 26AS before filing your income tax return to get a tax credit as we can take a tax credit of only those items appearing in our 26AS.

Online income tax return allows you to pay taxes at any time and from anywhere through the net-banking account without being in the long queue at the Bank.

The type of return form in which you should file your return varies as per the category of Assesse: • For Individuals/HUF: ITR-1, ITR-2A, ITR-2, ITR-3, ITR-4S, and ITR-4 • For Company: ITR-6, ITR-7 • Other than Individuals and Company: ITR-5

Interest on tax due shall be paid. If the return is not filed up to the end of the assessment year, in addition to interest, a penalty of Rs. 5,000 shall be levied under section 271F.

There is an option to file Belated Return. It shall be filed within one year from the end of the assessment year or before completion of the assessment, whichever is earlier. It is to be noted that Belated Return can be filed but interest and penalty shall be levied.

To give relief to small taxpayers having income from business or profession from maintaining books and accounts presumptive taxation scheme was introduced in the Income Tax Act, 1961. This section gives exemption to taxpayers opting for this scheme from maintaining books, audit, paying quarterly advance tax. The scheme is framed under three section of the Income-tax act 1961: • Section 44AD: For small taxpayers engaged in business other than the business of plying, hiring or leasing goods carriages. • Section 44ADA: For small taxpayers having income from profession. • Section 44AE: For small taxpayers engaged in the business of plying, hiring or leasing goods carriages.

Interest and penalty are followed by the prosecution if, tax not paid. The prosecution can lead to rigorous imprisonment from 3 months to 2 years (when the tax sought to be evaded exceeds Rs. 25,00,000 the punishment could be 6 months to 7 years).

Revision of return filed is possible if, the original return is filed within due date and Department has not completed the assessment relevant to that year. Mistake shall be genuine and bona fide and shall not be any deliberate mistake.

If the income tax liability in any financial year is more than Rs. 10000 then, the advance tax shall be paid in installments during the year itself.

If the income is below exemption limit then it is not mandatory to file the return but you may file the return as you cannot file the return for past years once the due date elapses. Also, ITR is a valid document for bank credit, housing loans, etc.

Mere deduction of TDS does not exempt you from the filing IT return. Even if your employer has deducted TDS from your income, you must file your return. To claim the TDS amount, filing of IT return is mandatory.