India Tax Returns

India tax returns are used by all individuals who come under the taxable slab as prescribed by the Government of India. Nevertheless, tax returns in India are also applicable to property owners, telephone subscribers, car owners, and credit card holders. Types of tax returns in India The Government of India has introduced different types of forms to make the procedure of filing returns simpler. For instance, Form 2D is offered for evaluating individuals who are involved in the corporate sector. However, it is not applicable to people who are eligible for tax exemption u/s 11 of the Income Tax Act, 1961. Once more, self-employed individuals who have their own business and request for exemptions u/s 11 of the Income Tax Act, 1961, have to file Form 2. For individuals whose salary income is subject to tax deduction at source, filing Form 16AA is necessary. You need to file Form 2B if block periods take place as a result of confiscation cases. For those who don’t possess any PAN/GIR number, they need to file the Form 60. Filing form 60 is essential in the following instances: Making down payment in cash for purchasing a car Purchasing securities or shares of above Rs.10,00,000 For opening a bank account, and For making a bill payment of Rs. 25,000 and above for restaurants and hotels. If you are a member of an HUF (Hindu Undivided Family), then you need to fill out Form 2E, provided you don’t make money through cultivation activities or operate any business. You are eligible for capital gains and need to file form no 46A for obtaining the Permanent Account Number u/s 139A of the Income Tax Act, 1961. Verification of India Tax Returns The most important feature of filing tax returns in India is that it needs to be verified by the individual who fulfills the prerequisites pf sectio 140 of the Income Tax Act, 1961. The returns of various entities have to be signed by the authority. For instance, the income tax returns of small, medium, and large-scale companies have to be signed and authenticated by the managing director of that particular company. If there is no managing director, then all the directors of the company enjoy the authority to sign the form. If the company is going through a liquidation process, then the return has to be signed by the liquidator of the company. If it is a government undertaking, then the returns have to be authenticated by the administrator who has been assigned by the central government for the particular reason. If it is a non-resident company, then the authentication has to be performed by the individual who possesses the power of atto ey needed for the purpose. If the tax return is filed by a political party, the secretary and the chief executive officer are due to authenticate the returns. If it is a partnership firm, then the authorized signatory is the managing director of the firm. In the absence of the managing director, the partners of that firm are empowered to authenticate the tax return. For an association, the return has to be authenticated by the chief executive officer or any other member of that association. Filing of Tax Returns in India: In India, the financial year concludes on March 31 every year and the Government of India permits about 4 months more after the conclusion of the financial year i.e. July 31 for submitting the returns for that year. Firms that have a necessity to get their books of accounts audited according to the Income Tax Act, 1961 are permitted to submit their returns by October 31. Consequence of not filing India tax returns: If the taxpayer can’t file his return on time, he has to pay specific penalties. For instance, s/he will have to pay an interest of 1% for every month of delay. If the taxpayer files his return following the year-end of the next year, he will be subjected to a fine of Rs.5,000 along with the interest @1% for every month of delay.