Benefits of Filing your Income Tax Return on time

“I’m taking the #TaxPledge to file IT returns with the easy Income Tax efiling option from H&R Block at BlogAdda.”

Under Income Tax Law if your total income exceeds the basic exemption limit: You have to file the Income Tax Return within the prescribed time, i.e. by the due date.

This is applicable for the Assessment Year 2012-13.

As an Individual you are required by law to file your Income Tax Returns, if your total income without allowing deductions (such as Section 80C etc) exceeds the basic exemption limit.

For Assessment Year 2012-13, the basic exemption limits are the following:

•   For Men below the age of 60, the exemption limit is Rs. 1,80,000.

•   For Women, below the age of 60, the exemption limit is Rs. 1,90,000.

•   For Senior Citizens, whose age is between 60 years to 80 years, the exemption limit is Rs. 2,50,000. This is identical for men and women.

•   For Super Senior Citizens, of the age of 80 years or more, the exemption limit is Rs. 5,00,000.

What does Total Income without allowing deductions (such as Section 80C etc) actually mean?

Let’s say, your gross total Income is Rs. 2,00,000. You have paid Rs. 50,000 in LIC premium for claiming deduction under Section 80C. Your Taxable Income is Rs. 1,50,000 (Rs. 2,00,000 – Rs. 50,000). The tax payable on Rs. 1,50,000 is Zero.

However, even in this situation, you are required to file your Income Tax Return as your gross total Income exceeds the basic exemption limit of Rs. 1,80,000. (assuming you are not a senior citizen).

Exemption for filing Income Tax Return for Salaried Employees

For the Assessment Year 2012-13, there is an exemption from filing the Income Tax Return for Salaried employees, subject to the following conditions. 

•   Your Total Income after deductions (such as Section 80C etc) is upto Rs. 5,00,000.

•   Income other than Salary should be only from Saving Bank Interest, upto Rs. 10,000. If you have any other source of Income like House Property, Capital Gain, or even interest from fixed deposits, you will have to file your Income Tax Return.

•   You must declare this Interest Income from the Saving Bank to the Employer. The employer then has to deduct the TDS taking into account your Interest Income.

•   If you have a refund due, you need to your file your Income Tax Return to claim this refund.

This exemption is difficult to get in actual practice. You will most likely have to file your Income Tax Return.

This is because, you must declare your Interest Income to your employer before 31st March of the Financial Year. But in most cases, the Bank issues the Interest statement after 31st March. So it is virtually impossible to report the Bank Interest to the employer in time.

Compulsory filing of Income Tax Returns if you have foreign assets.

For the Assessment 2012-13, it is mandatory to file your Income Tax Return if you have any foreign assets. Even though you may not have any taxable Income.

When is e-filing your Income Tax Return compulsory?

For the Assessment year 2012-13, e-filing of the Income Tax Return has become compulsory for the following cases:

•   If your Total Income exceeds Rs. 10 Lakhs, then you must e-file your Income Tax Return.

•   If you own foreign assets, you must e-file.

I have paid all my taxes, do I still need to file my Income Tax Return?

As explained above, the law has placed an obligation on you to file the Income Tax Return even if you have no tax due.

The due dates of filing returns for Assessment Year 2012-13 are the following:

Category	Due Date
(a)   Most people fall in this category – Salaried employees, pensioners and other persons whose accounts are not required to be audited	31st July 2012
(b)   Companies and other persons whose accounts are to be audited	30th September 2012

What happens if a person does not file the Income Tax Return by the due date

You have to Pay Interest on Income Tax Due if you don’t file on time

If you do not file the Income Tax Return by the due date:

You are liable to pay interest at the rate of one percent for every month after the due date till the date of filing the return.

If No Tax is due: Interest is calculated on the amount of tax payable after adjustment of pre-paid taxes like advance tax, TDS etc. So, if there is no tax payable on the basis of the Income declared in the Tax Return, there is no liability for the payment of interest.

You don’t get the benefit of Carry Forward of Losses if you don’t file on time

Under income tax law, if you have sustained a Business loss or loss under the head “Capital Gains”, you can carry forward the loss ONLY if you file the Income Tax Return by the due date.

Therefore, if you have sustained a loss, you must file your Income Tax Return in time if you want to carry forward the loss for future adjustment with your Income.

Possibility of Penalty or Prosecution by the Income Tax Department

Say you could not file the Income Tax Return by the due date: To avoid any penalty by the Income Tax Department, you must file your Income Tax Return before the end of the relevant assessment year that is 31st March 2013.

Possibility of Penalty and Prosecution: If you do not file your Income Tax Return by 31st March 2013, the Income Tax Department may impose a penalty of Rs. 5000, even though the tax payable by you may be Zero.

Further, if a person has failed to file the Income Tax Return by 31st March 2013 and the tax payable after adjustment of advance tax and TDS exceeds Rs. 3000, he may be prosecuted for imprisonment also. However, this law is used in practice very rarely.

Other reasons for filing the returns of income within time

·         If a refund is due after adjustment of prepaid taxes, it is necessary to file the Income Tax Return to get the refund from the Income Tax Department.

·         Bank Loans: Further, the return is a declaration of your income and it will be extremely helpful when you are applying for a loan from bank. Before granting the loan, banks want to know your financial capacity and your income details as shown by you in income tax returns. 

·         Visas of foreign countries: Many countries want to know if you are financially sound before they issue you a visa and for this purpose they will rely on your income tax returns.

       why to write IT returns and advantages of it
“I’m taking the #TaxPledge to file IT returns with the easy Income Tax efiling option from H&R Block at BlogAdda.”


The tax that is levied on the earnings of individuals, businesses, corporations or other legal entities is referred to as Income Tax.  The types of payments that fall under the tax bracket like capital gains, business incomes and personal income or wages are called “Tax Net”.

There is no universal tax rate fixed for all incomes. It varies across different sectors and sections and there maybe few incomes that do not fall under the tax bracket at all. Primarily we deal with two types of taxes namely Direct Taxes and Indirect Taxes. Direct Taxes are those whose liability is directly borne by the tax payer for example income tax where as the liability of indirect taxes like VAT etc can be slipped on to a third party.

The Income Tax Act 1961 states that all those assesses whose total income exceeds the prescribed bracket of exemption will be charged with income tax. It is important to know that the residential status of the individual also plays a pivotal role in determining the total income of an individual.

Meaning of Income Tax Returns – If you fall under the taxation bracket then you would have to provide a declaration to the Income Tax Department about the earnings you have made with permitted deductions and exemptions that computes your tax liability in a format that is pre-defined by the Government at the end of every financial year.

This also includes royalties on which no tax has been deducted, interest on your savings bank account, earnings from part-time work, dividends, fees, rent etc which have not been taxed or maybe a part or portion of which has been taxed. These statements signed and affirmed by you revealing the correct picture of your income during the previous financial year are collected by the Government. This is known as Income Tax Return or Return of Income.

Benefits of Filing Tax Return Online

• While you file your returns online, the calculations are done automatically thus you are relieved from the hassle of calculations and confusions. You get to know that very moment what money you owe or what would come back to you. Obviously, its accuracy can not be questioned.
• It is easier, convenient and time saving. The money that is owed to you reaches you within weeks whereas if you go by the traditional method it takes time.
• The moment you click the submit icon, you receive the acknowledge slip
• Those of you who wish to save yourself from the plethora of paperwork, filing income tax returns online is a boon.
• Another benefit of filing tax return online is that you do not have to wait in long queues nor have to pay an agent who can stand on your behalf for hours in the office in order to file your returns.
• Online tax returns have broken the notion that government offices have specific fixed hours of working. You may file your returns at any time in day or night.
• As it becomes more easily accessible, filing returns online also gives you an advantage of checking the status of your refund. 

How to File Income Tax Returns Online

Electronic Filing or E-Filing is referred to the process of filing your tax returns online. Follow the following steps for filing tax returns online. 

• The very first thing that you ought to do is to sign up as a new user by visiting the official website of Income Tax of India.
• While you sign up as a new user you will be asked to give out your PAN Number and other details. Once you fill in the form click on the button that says “Register”.
• Once you get registered you will be taken to a form that shows your address, the one that you have given for your PAN card. You need to update your telephone number, e-mail, create your password and click “Submit”.
• You will now be turned to the e-filing links for your tax returns for the assessment year. Now you are required to click on the link for the assessment year and choose your category. For example, if you are the one only with salaried income then download only ITR-1.
• Along with that also download the excel utility which is like an excel sheet in which you will fill in the required data and you need to save that on your system.
• Once through with this, upload the excel sheet and press “Submit Return”.
• Once through with this, you will see that an acknowledgement slip pops up on your screen. You will have to take a print out of the same, verify and sign it and post it to your local income tax office.
• Make sure that the acknowledgement receipt reaches your local income tax office within 15 days since you have filled in the form online failing which you will be required to go through the same process again.
• For all the tech-savvy people out there, digital signatures can also be used if you wish to eliminate even the slightest paper work. 

Filing Tax Return has become all the more convenient, accurate, paperless, time-saving and secured since the time it has become just a click away. However, while you turn to filing income tax returns online make sure that you cross check your address on the form, your return is being mailed to the right server. All pages should bear your Name and other credentials on front as well as back.

Having done that, you can enjoy the luxury of filing your income tax returns online from anywhere at anytime.