IT refunds in five lakh e-filed cases
The Centralised Processing Centre of the Income Tax Department here has processed over 26 lakh e-filed returns in Forms 1-4 for the assessment year 2009-10. It has determined refunds in over five lakh cases. A release said refunds are being sent through State Bank of India. The status of these refunds can be checked at CPC’s call centre (080-43456700) or at www.tin-nsdl.com.
The department has been informed by the bank that a large number of refund cheques in respect of paper returns for 2008-09 have been returned by the postal authorities owing to change in address or for other similar reasons. Many refunds in ECS mode have not been successfully credited to taxpayers accounts because of incomplete/incorrect MICR and bank account details. Details of these returned intimations are available at www.incometax bangalore-.org. In respect of paper returns of salary ranges of Bangalore for 2008-09 processed at the CPC, taxpayers may contact the PRO, Income-tax Department at Ground Floor, Central Revenue Buildings, Queen’s Road, Bangalore.
They may collect the returned intimation and update their details of address/bank accounts/MICR code by writing to CPC, Bangalore at CPC, Post Bag No. 1, Bangalore–560100. In case of updated bank account/MICR code, taxpayers should enclose a copy of a cancelled cheque while giving the details, the release added.
Source : The Hindu
Frequently Asked Questions for refund banker :-
From which date the refund banker has been implemented?
The refund banker has been implemented from January 24, 2007.
In which cities the refund banker has been implemented?
The refund banker facility is operational for non-corporate taxpayers assessed in Delhi, Mumbai, Kolkata, Chennai, Bangalore, Bhubneshwar, Ahmedabad, Hyderabad, Pune, Patna, Cochin, Trivandrum, Chandigarh, Allahabad, and Kanpur.
Who will send the refund to me?
The State Bank of India (SBI) is the refund banker to the Income Tax Department (ITD). The Cash Management Product department of SBI (CMP SBI) processes the refunds under the refund banker scheme. Details of refunds are forwarded to CMP SBI by the ITD. CMP SBI processes the refunds and sends the refund intimation to the taxpayer.
How will the refund be sent to me?
Refunds are generated in two modes i.e., ECS and paper . If the taxpayer has selected mode of refund as
ECS (direct credit in the bank account of the taxpayer) at the time of submission of income return the taxpayer’s bank A/c (at least 10 digits ) and MICR code of bank branch and communication address are mandatory .
For taxpayers who have not opted for ECS refund will be disbursed by cheque or demand draft. For generation of refund through paper cheque bank account no, correct address is mandatory.
From May 2008 refund is also effected by National Electronic Fund Transfer (NEFT).
How can I know the status of my refund?
The taxpayer can track the status of its refund from the Departmental Website www.incometaxindia.gov.in / NSDL-TIN website www.tin-nsdl.com by clicking on “Status of Tax Refunds”. Refund status can be tracked by entering the PAN and Assessment Year for which refund is to be tracked. Status of the refund can also be tracked by contacting the help desk of SBI’s at toll free number: 18004259760 or email at: – itro@sbi.co.in.
If I have shifted my residence whom should I contact for updating my correspondence address for receipt of refund?
The tax payer should contact its Assessing Officer and inform about the change in the correspondence address.
If my bank account has been closed how will I get refund credit into the account?
In case of change or updation in the bank account number the taxpayer should provide the correct account number along with the MICR code where credit is to be effected to the Assessing Officer.
Whom do I contact if the refund dispatched has not been received?
The tax payer can contact its local post office with the speed post ref no displayed at the NSDL-TIN website
I have received the physical ECS refund advice and status of refund is “paid” on website of refund status track but my account has not been credited. Whom do I contact?
In case credit is not effected in the taxpayer account through ECS but the refund advice has been received by the taxpayer AND the status shown is “paid”- in that case, the tax payer should contact his bank or SBI. You should contact SBI at the following address.
Cash Management Product (CMP)
State Bank of India
SBIFAST
31, Mahal Industrial Estate
Off Mahakali Caves Road
Andheri (East)
Mumbai – 400 093.
Phone Number: 18004259760 or email at itro@sbi.co.in
I have neither received the physical ECS refund advice and status of refund is “unpaid” on website track. Whom do I contact?
The tax payer should provide the correct account number and MICR code to concerned Assessing officer, where credit is to be effected. The Assessing Officer will inform SBI to send a fresh refund cheque to the taxpayer.
If the date of encashing the refund cheque expires, whom should I contact?
The tax payer should contact their Assessing Officer as well as CMP SBI at the below address:
Cash Management Product (CMP)
State Bank of India
SBIFAST
31, Mahal Industrial Estate
Off Mahakali Caves Road
Andheri (East)
Mumbai – 400 093.
Phone Number: 18004259760 or email at itro@sbi.co.in
How do I rectify any mistakes in the name, assessment year, PAN, account number printed on the refund cheque delivered to me?
In case of any mistakes on the refund cheque delivered to you, the following should be done:
i) Send the original refund cheque to CMP, State Bank of India at SBIFAST 31, Mahal Industrial Estate, Off Mahakali Caves Road, Andheri East, Mumbai – 400 093, Phone Number: 18004259760, along with a letter informing the mistakes on the refund cheque.
ii) Send a copy of the letter along with a copy of the refund cheque to your Assessing Officer.
iii) Retain a copy of the letter and refund cheque with you.
If somebody else’s refund cheque / advice is delivered to me what should I do?
You should contact SBI at the following address and return the refund cheque / advice.
Cash Management Product
State Bank of India
SBIFAST
31, Mahal Industrial Estate,
Off Mahakali Caves Road,
Andheri (East)
Mumbai – 400 093
Phone Number: 18004259760 or email at itro@sbi.co.in
Is there any method available to know whether the refund record has been generated for the taxpayer?
The taxpayer can track the status of its refund from the NSDL-TIN website www.tin-nsdl.com by clicking on “Status of Tax Refunds”.
Refund status can be tracked by entering the PAN and Assessment Year for which refund is to be tracked.
Status of the refund can also be tracked by contacting the help desk of SBI at 080-26599760.
Whom do I contact for queries related to payment of refund which has been processed by ITD?
For any payment related query the taxpayer should contact SBI at 18004259760 or email at itro@sbi.co.in.
Whom should I contact for refund related queries?
For any refund related query the tax payer should contact Aaykar Sampark Kendra at 0124 2438000 or email at refunds@incometaxindia.gov.in. http://tin-nsdl.com/faqrefund.asp
Frequently Asked Questions : General (regarding Income Tax)
Income Tax Clearance Certificate abolished w.e.f. 1-1-03
Q1. What is Assessment year and financial year?
Ans : Financial year starts from 1st April and ends on 31st March (wherein there is income pertaining to the whole year or part of the year). Assessment year is the year immediately following the financial year wherein the income of the F.Y. is assessed.
Q2. How and where income tax has to be paid?
Ans : Tax can be paid by way of cash, cheque or draft in any authorised national banks, in the prescribed challan. The challan can be obtained from Income tax Offices.
Q3. Who is liable to pay Income-tax?
Ans : Every ‘person’ who has taxble income during the previous year shall be liable to pay income tax. ‘Person’ is defined in the Income-tax Act to include
(i) an individual,
(ii) a Hindu undivided family,
(iii) a company,
(iv) a firm,
(v) an association of persons or a body of individuals, whether incorporated or not,
(vi) a local authority
(vii) every artificial juridical person, not falling within any of the preceding items.
Q4. What is Permanent Account Number (PAN)? Is it compulsory to obtain and quote PAN?
Ans : Permanent Account Number is a ten character unique number allotted to a person by the Income tax Department. It is compulsory for the following persons to apply for the allotment of PAN if he has not already been allotted one :
(i) Every person who has taxable income during any previous year (financial year).
(ii) Every person carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed Rs.5 lakhs in any previous year.
It is compulsory to quote PAN in all returns of income and every correspondence with Income-tax authorities and in all challans used for the payment of tax. As per recent notification issued by Director General of Foreign Trade and Central Excise Department, PAN is required to be quoted by all holders of Import/Export Code (IEC) and all Central Excise assessees. PAN is also to be quoted in all documents pertaining to the below mentioned transactions :-
(a) Sale or purchase of any immovable property valued at Rs.5 lakhs or more;
(b) sale or purchase of a motor vehicle which requires registration by a Registering Authority other than 2 wheelers;
(c) a time deposit exceeding Rs.50,000 with a banking company;
(d) a deposit exceeding Rs.50,000 in any account with Post Office Savings Bank;
(e) a contract of a value exceeding Rs.10 lakh for sale or purchase of securities;
(f) opening an account with a banking company;
(g) making an application for a telephone connection including a cellular telephone connection;
(h) payment to hotels and restaurants against their bills for an amount exceeding Rs.25,000 at any one time.
(i) Payment in cash for purchase of bank drafts or pay orders or bankers cheques from a banking company to which the Banking Regulation Act, 1949(10 of 1949), applies (including any bank or banking institution referred to in section 51 of the Act) for an amount aggregating fifty thousand rupees or more during any one day.
(j) Deposit in cash aggregating fifty thousand rupees or more, with a banking company to which the Banking regulation Act, 1949(10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) during any one day.
(k) Payment in cash in connection with travel to any foreign country of an amount exceeding twenty five thousand rupees at any one time.
Explanation – for the purposes of this clause,-
(a) “payment in cash in connection with travel” includes payment in cash towards fare, or to a travel agent or a tour operator, or for the purchase of foreign currency;
(b) the expression “travel to any foreign country” does not include travel to the neighbouring countries or to such places of pilgrimage as may be specified by the Board under Explanation 3 of sub-section (1) of section 139
Q5. Tax has already been paid (by way of tax deducted at source or advance tax) on the total income and there is also no interest payable or refund due. In such a case, is it necessary to file a return of income?Ans : Yes, every person whose total income during the previous year exceeded the maximum amount which is not chargeable to Income-tax should file his return of income in the prescribed form irrespective of whether any tax or interest is payable or refund is due. On his failure to furnish a return before the end of the relevant assessment year, he shall be liable to pay a penalty of Rs.5000/-.
Every person who is liable to furnish a return of his income in form No.2C as per the ‘One-by-Six Scheme’ should also furnish the same before the due date ( details of the ‘One-by-Six Scheme’ are available in the separate page of this site). On his failure to do so he shall be liable to pay a penalty of Rs.5000/-
Q6. Is it compulsory to file a return of income when there is loss?
Ans : If a person has sustained a loss in the previous year and wishes to carry forward the loss to the subsequent year he should furnish a return of loss in the prescribed form before the due date.
Q7. What are the due dates for filing of returns of income/loss?
Ans : The due dates shall be as under :-
(a) Where the assessee is a company, the 31th day of October of the assessment year;
(b) Where the assessee is a person other than a company.
(c) if the accounts are required to be audited, the 31st day of October of the assessment year;
(d) where the total income includes any income from business or profession and where the accounts are not required to be audited, the 31st day of July of the assessment year;
(e) in any other case the 31th day of July of the assessment year.
Q8. Can a return of income be filed after the due date?
Ans : Yes, a person who has not furnished a return before the due date may furnish the same at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment whichever is earlier.
Q9. Where should the return of income be filed?
Ans : The return of income should be file with the Assessing Officer having jurisdiction over the person. The jurisdiction of officers in Karnataka & Goa Region is available in the jurisdiction(link) menu of the site.
Q10. Who is an Assessing Officer (A.O.)?
Ans : An Assessing Officer is a Joint Commissioner or Joint Director or Deputy Commissioner or Assistant Commissioner or Deputy Director or Assistant Director or Income-tax Officer who has the relevant jurisdiction.
Q11. Are the incomes of all members of the family to be clubbed together for charging to Income-tax?
Ans : No, each member of the family will be charged separately on his or her income. There are, however, certain exceptions as stated in Section 64 of the Income-tax Act. Some of these are mentioned below :-
(i) The income arising to the spouse of an individual directly or indirectly from assets transferred directly or indirectly to the spouse by such an individual otherwise than for adequate consideration or in connection with an agreement to live apart shall be included in the income of the individual.
(ii) All incomes of a minor child in excess of Rs.1500 (other than income accruing to him on account of any manual work done by him or from any activity involving application of his skill, talent or specialised knowledge and experience) shall be included in the income of that parent of the minor child whose total income excluding the minor’s income is greater.
The income of Hindu Undivided Family (HUF) is taxed separately in the hands of the HUF and income received by the members from out of the income of the HUF will not be charged to tax in their hands.
Q12. Is it compulsory to maintain books of accounts?
Ans : Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as notified by the Central Board of Direct Taxes shall keep and maintain books of accounts. Also, every person carrying on business or profession (other than professions mentioned earlier) shall maintain books of accounts if the income from business or profession exceeds Rs.1,20,000/- or the total sales, turnover or gross receipts in the business or profession exceeds Rs.10 lakhs in any one of the three years immediately preceding the previous year.
Q13. Is it compulsory to get the books audited?
Ans : (i) Every person carrying on business shall get his accounts audited if the total sales, turnover or gross receipts in business exceed Rs.40 lakhs in the previous year.
(ii) Every person carrying on profession shall get his accounts audited if his gross receipts exceed Rs.10 lakhs in the previous year.
Q14. If I have some information on evasion of tax , to whom should I give this information?
Ans : This information should only be given to the Addl.DIT (INV) and such information will be kept confidentional.
Q15. When arrears of salary pertaining earlier years are received in one year, what is the relief available to the assessee?
Ans : The arrears of salary are to be taxed in the year of receipt along with the regular salary. However, the employee will be entitled to certain relief under section 89(1) as computed in accordance with Rule 21A.
Q16. Can the employer take into account the relief admissible under section 89(1) while deducting tax at source from salary?
Ans : Yes, in respect of Govt. servants or employees in a company, co-operative society, local authority, university, institution, associations or body, the employer may take into account the relief admissible under section 89(1) provided the employee furnishes the particulars in form No.10E to the employer.
Q17. If an employee has also income from other sources apart from salary, can the employer take these into account while deducting tax from salary?
Ans : Yes, if the employee furnishes the required particulars in form No.12C to the employer. This is subject to the condition that the income under any of the other heads except ‘Income from House Property’ is not a loss. If the employee has incurred a loss under the head ‘Income from House Property’, he may furnish details thereof to the employer in form No.12C and the employer may then take into account the said loss while deducting tax from salary.
Q18. Is pension treated as salary ?
Ans : Yes, pension is also treated as salary and is accordingly entitled to the standard deduction.
Q19. Is family pension also treated as salary?
Ans : No. As there is no employer-employee relationship between the recipient of the family pension and the payer, family pension is not salary. It is taxed under the head ‘Income from Other Sources’. In respect of family pension received from the employer by a person belonging to the family of the employee in the event of the employee’s death, a standard deduction of 1/3rd of the family pension or Rs.15,000 whichever is less is allowed as a deduction.
Q20. On what basis is income from House Property taxed?
Ans : The annual value of house properties owned by a person other than those which are occupied by him for the purpose of any business or profession carried on by him is charged to Income-tax as ‘Income from House Property’. Annual value of a property is defined as ‘the sum for which the property might reasonably be expected to let from year to year’. If the property is in the occupation of the tenant, the taxes levied by any local authority in respect of the property shall, to the extent such taxes are borne by the owner should be deducted in determining the annual value of the property of that previous year in which such taxes are actually paid by the owner.
If the property is let and if the rent received or receivable is in excess of the sum mentioned above, the rent so received or receivable shall be taken to be the annual value.
Q21. How is the annual value of a self-occupied property computed?
Ans : The annual value of a house or part of a house shall be taken to be NIL if
(i) it is in the occupation of the owner for the purposes of his own residence and
(ii) it is not actually let during any part of the previous year and no other benefit therefrom is derived by the owner.
Where two or more houses are in the occupation of the owner for the purposes of his own residence, then the annual value shall be taken to be Nil only in respect of any one house of his choice. The annual value of the remaining house/houses will be computed as if the said house/houses were let.
Q22. What are the deductions admissible while computing income from House Property?
Ans : The following deductions are to be made from the annual value while computing income from house property :-
(a) 30% of the annual value, in respect of repairs and collection charges;
(b) interest payable on loan taken for acquisition, construction, repair, renewal or re-construction of the property;
In respect of a self-occupied property whose annual value is taken as Nil, no deduction is admissible except deduction for interest payable on loan as mentioned at (b) above, subject to a ceiling of Rs.30,000/- ( if the property is acquired or constructed with capital borrowed on or after 1.4.1999 and if the acquisition or construction is completed before 1.4.2003, the interest allowable as deduction will be Rs.1,50,000/- instead of Rs.30,000/-).
Q23. If there is a loss under the head ‘Income from House Property’, can it be adjusted against other income?Ans : Yes, any loss under the head ‘Income from House Property’ can be adjusted against income under any head in the same year.
Q24. Can the loss under the head ‘House Property’be carried forward to the subsequent assessment years?
Ans : Yes, from A.Y.1999-2000 and onwards loss under the head ‘House Property’ which cannot be wholly set off against income from any other head in the same assessment year can be carried forward and set off against income from House Property for immediately succeeding 8 assessment years.
Q25. The property is owned by two or more persons and their respective shares are definite. Will the income from such property be assessed in the hands of the association of persons?Ans : No, the income from such property will not be assessed in the hands of the association of persons. The share of each person in the income from the property shall be included in his total income.
Source: www.incometaxindia.gov.in
The Centralised Processing Centre of the Income Tax Department here has processed over 26 lakh e-filed returns in Forms 1-4 for the assessment year 2009-10. It has determined refunds in over five lakh cases. A release said refunds are being sent through State Bank of India. The status of these refunds can be checked at CPC’s call centre (080-43456700) or at www.tin-nsdl.com.
The department has been informed by the bank that a large number of refund cheques in respect of paper returns for 2008-09 have been returned by the postal authorities owing to change in address or for other similar reasons. Many refunds in ECS mode have not been successfully credited to taxpayers accounts because of incomplete/incorrect MICR and bank account details. Details of these returned intimations are available at www.incometax bangalore-.org. In respect of paper returns of salary ranges of Bangalore for 2008-09 processed at the CPC, taxpayers may contact the PRO, Income-tax Department at Ground Floor, Central Revenue Buildings, Queen’s Road, Bangalore.
They may collect the returned intimation and update their details of address/bank accounts/MICR code by writing to CPC, Bangalore at CPC, Post Bag No. 1, Bangalore–560100. In case of updated bank account/MICR code, taxpayers should enclose a copy of a cancelled cheque while giving the details, the release added.
Source : The Hindu
Frequently Asked Questions for refund banker :-
From which date the refund banker has been implemented?
The refund banker has been implemented from January 24, 2007.
In which cities the refund banker has been implemented?
The refund banker facility is operational for non-corporate taxpayers assessed in Delhi, Mumbai, Kolkata, Chennai, Bangalore, Bhubneshwar, Ahmedabad, Hyderabad, Pune, Patna, Cochin, Trivandrum, Chandigarh, Allahabad, and Kanpur.
Who will send the refund to me?
The State Bank of India (SBI) is the refund banker to the Income Tax Department (ITD). The Cash Management Product department of SBI (CMP SBI) processes the refunds under the refund banker scheme. Details of refunds are forwarded to CMP SBI by the ITD. CMP SBI processes the refunds and sends the refund intimation to the taxpayer.
How will the refund be sent to me?
Refunds are generated in two modes i.e., ECS and paper . If the taxpayer has selected mode of refund as
ECS (direct credit in the bank account of the taxpayer) at the time of submission of income return the taxpayer’s bank A/c (at least 10 digits ) and MICR code of bank branch and communication address are mandatory .
For taxpayers who have not opted for ECS refund will be disbursed by cheque or demand draft. For generation of refund through paper cheque bank account no, correct address is mandatory.
From May 2008 refund is also effected by National Electronic Fund Transfer (NEFT).
How can I know the status of my refund?
The taxpayer can track the status of its refund from the Departmental Website www.incometaxindia.gov.in / NSDL-TIN website www.tin-nsdl.com by clicking on “Status of Tax Refunds”. Refund status can be tracked by entering the PAN and Assessment Year for which refund is to be tracked. Status of the refund can also be tracked by contacting the help desk of SBI’s at toll free number: 18004259760 or email at: – itro@sbi.co.in.
If I have shifted my residence whom should I contact for updating my correspondence address for receipt of refund?
The tax payer should contact its Assessing Officer and inform about the change in the correspondence address.
If my bank account has been closed how will I get refund credit into the account?
In case of change or updation in the bank account number the taxpayer should provide the correct account number along with the MICR code where credit is to be effected to the Assessing Officer.
Whom do I contact if the refund dispatched has not been received?
The tax payer can contact its local post office with the speed post ref no displayed at the NSDL-TIN website
I have received the physical ECS refund advice and status of refund is “paid” on website of refund status track but my account has not been credited. Whom do I contact?
In case credit is not effected in the taxpayer account through ECS but the refund advice has been received by the taxpayer AND the status shown is “paid”- in that case, the tax payer should contact his bank or SBI. You should contact SBI at the following address.
Cash Management Product (CMP)
State Bank of India
SBIFAST
31, Mahal Industrial Estate
Off Mahakali Caves Road
Andheri (East)
Mumbai – 400 093.
Phone Number: 18004259760 or email at itro@sbi.co.in
I have neither received the physical ECS refund advice and status of refund is “unpaid” on website track. Whom do I contact?
The tax payer should provide the correct account number and MICR code to concerned Assessing officer, where credit is to be effected. The Assessing Officer will inform SBI to send a fresh refund cheque to the taxpayer.
If the date of encashing the refund cheque expires, whom should I contact?
The tax payer should contact their Assessing Officer as well as CMP SBI at the below address:
Cash Management Product (CMP)
State Bank of India
SBIFAST
31, Mahal Industrial Estate
Off Mahakali Caves Road
Andheri (East)
Mumbai – 400 093.
Phone Number: 18004259760 or email at itro@sbi.co.in
How do I rectify any mistakes in the name, assessment year, PAN, account number printed on the refund cheque delivered to me?
In case of any mistakes on the refund cheque delivered to you, the following should be done:
i) Send the original refund cheque to CMP, State Bank of India at SBIFAST 31, Mahal Industrial Estate, Off Mahakali Caves Road, Andheri East, Mumbai – 400 093, Phone Number: 18004259760, along with a letter informing the mistakes on the refund cheque.
ii) Send a copy of the letter along with a copy of the refund cheque to your Assessing Officer.
iii) Retain a copy of the letter and refund cheque with you.
If somebody else’s refund cheque / advice is delivered to me what should I do?
You should contact SBI at the following address and return the refund cheque / advice.
Cash Management Product
State Bank of India
SBIFAST
31, Mahal Industrial Estate,
Off Mahakali Caves Road,
Andheri (East)
Mumbai – 400 093
Phone Number: 18004259760 or email at itro@sbi.co.in
Is there any method available to know whether the refund record has been generated for the taxpayer?
The taxpayer can track the status of its refund from the NSDL-TIN website www.tin-nsdl.com by clicking on “Status of Tax Refunds”.
Refund status can be tracked by entering the PAN and Assessment Year for which refund is to be tracked.
Status of the refund can also be tracked by contacting the help desk of SBI at 080-26599760.
Whom do I contact for queries related to payment of refund which has been processed by ITD?
For any payment related query the taxpayer should contact SBI at 18004259760 or email at itro@sbi.co.in.
Whom should I contact for refund related queries?
For any refund related query the tax payer should contact Aaykar Sampark Kendra at 0124 2438000 or email at refunds@incometaxindia.gov.in. http://tin-nsdl.com/faqrefund.asp
Frequently Asked Questions : General (regarding Income Tax)
Income Tax Clearance Certificate abolished w.e.f. 1-1-03
Q1. What is Assessment year and financial year?
Ans : Financial year starts from 1st April and ends on 31st March (wherein there is income pertaining to the whole year or part of the year). Assessment year is the year immediately following the financial year wherein the income of the F.Y. is assessed.
Q2. How and where income tax has to be paid?
Ans : Tax can be paid by way of cash, cheque or draft in any authorised national banks, in the prescribed challan. The challan can be obtained from Income tax Offices.
Q3. Who is liable to pay Income-tax?
Ans : Every ‘person’ who has taxble income during the previous year shall be liable to pay income tax. ‘Person’ is defined in the Income-tax Act to include
(i) an individual,
(ii) a Hindu undivided family,
(iii) a company,
(iv) a firm,
(v) an association of persons or a body of individuals, whether incorporated or not,
(vi) a local authority
(vii) every artificial juridical person, not falling within any of the preceding items.
Q4. What is Permanent Account Number (PAN)? Is it compulsory to obtain and quote PAN?
Ans : Permanent Account Number is a ten character unique number allotted to a person by the Income tax Department. It is compulsory for the following persons to apply for the allotment of PAN if he has not already been allotted one :
(i) Every person who has taxable income during any previous year (financial year).
(ii) Every person carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed Rs.5 lakhs in any previous year.
It is compulsory to quote PAN in all returns of income and every correspondence with Income-tax authorities and in all challans used for the payment of tax. As per recent notification issued by Director General of Foreign Trade and Central Excise Department, PAN is required to be quoted by all holders of Import/Export Code (IEC) and all Central Excise assessees. PAN is also to be quoted in all documents pertaining to the below mentioned transactions :-
(a) Sale or purchase of any immovable property valued at Rs.5 lakhs or more;
(b) sale or purchase of a motor vehicle which requires registration by a Registering Authority other than 2 wheelers;
(c) a time deposit exceeding Rs.50,000 with a banking company;
(d) a deposit exceeding Rs.50,000 in any account with Post Office Savings Bank;
(e) a contract of a value exceeding Rs.10 lakh for sale or purchase of securities;
(f) opening an account with a banking company;
(g) making an application for a telephone connection including a cellular telephone connection;
(h) payment to hotels and restaurants against their bills for an amount exceeding Rs.25,000 at any one time.
(i) Payment in cash for purchase of bank drafts or pay orders or bankers cheques from a banking company to which the Banking Regulation Act, 1949(10 of 1949), applies (including any bank or banking institution referred to in section 51 of the Act) for an amount aggregating fifty thousand rupees or more during any one day.
(j) Deposit in cash aggregating fifty thousand rupees or more, with a banking company to which the Banking regulation Act, 1949(10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) during any one day.
(k) Payment in cash in connection with travel to any foreign country of an amount exceeding twenty five thousand rupees at any one time.
Explanation – for the purposes of this clause,-
(a) “payment in cash in connection with travel” includes payment in cash towards fare, or to a travel agent or a tour operator, or for the purchase of foreign currency;
(b) the expression “travel to any foreign country” does not include travel to the neighbouring countries or to such places of pilgrimage as may be specified by the Board under Explanation 3 of sub-section (1) of section 139
Q5. Tax has already been paid (by way of tax deducted at source or advance tax) on the total income and there is also no interest payable or refund due. In such a case, is it necessary to file a return of income?Ans : Yes, every person whose total income during the previous year exceeded the maximum amount which is not chargeable to Income-tax should file his return of income in the prescribed form irrespective of whether any tax or interest is payable or refund is due. On his failure to furnish a return before the end of the relevant assessment year, he shall be liable to pay a penalty of Rs.5000/-.
Every person who is liable to furnish a return of his income in form No.2C as per the ‘One-by-Six Scheme’ should also furnish the same before the due date ( details of the ‘One-by-Six Scheme’ are available in the separate page of this site). On his failure to do so he shall be liable to pay a penalty of Rs.5000/-
Q6. Is it compulsory to file a return of income when there is loss?
Ans : If a person has sustained a loss in the previous year and wishes to carry forward the loss to the subsequent year he should furnish a return of loss in the prescribed form before the due date.
Q7. What are the due dates for filing of returns of income/loss?
Ans : The due dates shall be as under :-
(a) Where the assessee is a company, the 31th day of October of the assessment year;
(b) Where the assessee is a person other than a company.
(c) if the accounts are required to be audited, the 31st day of October of the assessment year;
(d) where the total income includes any income from business or profession and where the accounts are not required to be audited, the 31st day of July of the assessment year;
(e) in any other case the 31th day of July of the assessment year.
Q8. Can a return of income be filed after the due date?
Ans : Yes, a person who has not furnished a return before the due date may furnish the same at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment whichever is earlier.
Q9. Where should the return of income be filed?
Ans : The return of income should be file with the Assessing Officer having jurisdiction over the person. The jurisdiction of officers in Karnataka & Goa Region is available in the jurisdiction(link) menu of the site.
Q10. Who is an Assessing Officer (A.O.)?
Ans : An Assessing Officer is a Joint Commissioner or Joint Director or Deputy Commissioner or Assistant Commissioner or Deputy Director or Assistant Director or Income-tax Officer who has the relevant jurisdiction.
Q11. Are the incomes of all members of the family to be clubbed together for charging to Income-tax?
Ans : No, each member of the family will be charged separately on his or her income. There are, however, certain exceptions as stated in Section 64 of the Income-tax Act. Some of these are mentioned below :-
(i) The income arising to the spouse of an individual directly or indirectly from assets transferred directly or indirectly to the spouse by such an individual otherwise than for adequate consideration or in connection with an agreement to live apart shall be included in the income of the individual.
(ii) All incomes of a minor child in excess of Rs.1500 (other than income accruing to him on account of any manual work done by him or from any activity involving application of his skill, talent or specialised knowledge and experience) shall be included in the income of that parent of the minor child whose total income excluding the minor’s income is greater.
The income of Hindu Undivided Family (HUF) is taxed separately in the hands of the HUF and income received by the members from out of the income of the HUF will not be charged to tax in their hands.
Q12. Is it compulsory to maintain books of accounts?
Ans : Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as notified by the Central Board of Direct Taxes shall keep and maintain books of accounts. Also, every person carrying on business or profession (other than professions mentioned earlier) shall maintain books of accounts if the income from business or profession exceeds Rs.1,20,000/- or the total sales, turnover or gross receipts in the business or profession exceeds Rs.10 lakhs in any one of the three years immediately preceding the previous year.
Q13. Is it compulsory to get the books audited?
Ans : (i) Every person carrying on business shall get his accounts audited if the total sales, turnover or gross receipts in business exceed Rs.40 lakhs in the previous year.
(ii) Every person carrying on profession shall get his accounts audited if his gross receipts exceed Rs.10 lakhs in the previous year.
Q14. If I have some information on evasion of tax , to whom should I give this information?
Ans : This information should only be given to the Addl.DIT (INV) and such information will be kept confidentional.
Q15. When arrears of salary pertaining earlier years are received in one year, what is the relief available to the assessee?
Ans : The arrears of salary are to be taxed in the year of receipt along with the regular salary. However, the employee will be entitled to certain relief under section 89(1) as computed in accordance with Rule 21A.
Q16. Can the employer take into account the relief admissible under section 89(1) while deducting tax at source from salary?
Ans : Yes, in respect of Govt. servants or employees in a company, co-operative society, local authority, university, institution, associations or body, the employer may take into account the relief admissible under section 89(1) provided the employee furnishes the particulars in form No.10E to the employer.
Q17. If an employee has also income from other sources apart from salary, can the employer take these into account while deducting tax from salary?
Ans : Yes, if the employee furnishes the required particulars in form No.12C to the employer. This is subject to the condition that the income under any of the other heads except ‘Income from House Property’ is not a loss. If the employee has incurred a loss under the head ‘Income from House Property’, he may furnish details thereof to the employer in form No.12C and the employer may then take into account the said loss while deducting tax from salary.
Q18. Is pension treated as salary ?
Ans : Yes, pension is also treated as salary and is accordingly entitled to the standard deduction.
Q19. Is family pension also treated as salary?
Ans : No. As there is no employer-employee relationship between the recipient of the family pension and the payer, family pension is not salary. It is taxed under the head ‘Income from Other Sources’. In respect of family pension received from the employer by a person belonging to the family of the employee in the event of the employee’s death, a standard deduction of 1/3rd of the family pension or Rs.15,000 whichever is less is allowed as a deduction.
Q20. On what basis is income from House Property taxed?
Ans : The annual value of house properties owned by a person other than those which are occupied by him for the purpose of any business or profession carried on by him is charged to Income-tax as ‘Income from House Property’. Annual value of a property is defined as ‘the sum for which the property might reasonably be expected to let from year to year’. If the property is in the occupation of the tenant, the taxes levied by any local authority in respect of the property shall, to the extent such taxes are borne by the owner should be deducted in determining the annual value of the property of that previous year in which such taxes are actually paid by the owner.
If the property is let and if the rent received or receivable is in excess of the sum mentioned above, the rent so received or receivable shall be taken to be the annual value.
Q21. How is the annual value of a self-occupied property computed?
Ans : The annual value of a house or part of a house shall be taken to be NIL if
(i) it is in the occupation of the owner for the purposes of his own residence and
(ii) it is not actually let during any part of the previous year and no other benefit therefrom is derived by the owner.
Where two or more houses are in the occupation of the owner for the purposes of his own residence, then the annual value shall be taken to be Nil only in respect of any one house of his choice. The annual value of the remaining house/houses will be computed as if the said house/houses were let.
Q22. What are the deductions admissible while computing income from House Property?
Ans : The following deductions are to be made from the annual value while computing income from house property :-
(a) 30% of the annual value, in respect of repairs and collection charges;
(b) interest payable on loan taken for acquisition, construction, repair, renewal or re-construction of the property;
In respect of a self-occupied property whose annual value is taken as Nil, no deduction is admissible except deduction for interest payable on loan as mentioned at (b) above, subject to a ceiling of Rs.30,000/- ( if the property is acquired or constructed with capital borrowed on or after 1.4.1999 and if the acquisition or construction is completed before 1.4.2003, the interest allowable as deduction will be Rs.1,50,000/- instead of Rs.30,000/-).
Q23. If there is a loss under the head ‘Income from House Property’, can it be adjusted against other income?Ans : Yes, any loss under the head ‘Income from House Property’ can be adjusted against income under any head in the same year.
Q24. Can the loss under the head ‘House Property’be carried forward to the subsequent assessment years?
Ans : Yes, from A.Y.1999-2000 and onwards loss under the head ‘House Property’ which cannot be wholly set off against income from any other head in the same assessment year can be carried forward and set off against income from House Property for immediately succeeding 8 assessment years.
Q25. The property is owned by two or more persons and their respective shares are definite. Will the income from such property be assessed in the hands of the association of persons?Ans : No, the income from such property will not be assessed in the hands of the association of persons. The share of each person in the income from the property shall be included in his total income.
Source: www.incometaxindia.gov.in
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