For all those who haven’t paid their previous year returns and remain unclear with the old dues, they are to be informed that only a single day is left for them to avoid the penalty of Rs. 5000. The IT department has given notices to the tax non-filers who are unaware of filing their previous year dues. If there are any back-logs or controversies in the returns from the past years, do make sure that they are to be sought out first before going ahead with the filing of this years’ taxes.
31st March is set to be the last date for the aforementioned task. After that, any unpaid tax would be considered as a post return and resultantly, the taxman will be liable to pay an amount of Rs. 5000 for the delay. The notice was published a week before by the IT dept. to warn all the tax payers.
The replying process to these notices is a bit more complicated, though, not as easy as log-in to the e-filing websites, which one can do in a few clicks. The task would be a bit tedious to those who didn’t file at all. There is a drop down menu having explanations to choose from. A valid selection must be made that depends on your income/investment sources, its taxability and extra tax filed for the year if any.
Below are the explanations that are to be appropriately chosen according to the transaction you get notified for.
1. Self-Investment/ expenditure are out of exempt income: This option should be selected if the investment or expense is prepared out of exempt income.
Action Needed: If any tax debt and pay up is remaining, calculate those. Your documents may get reviewed by the department, so assemble the related ones together.
2. Self-Investment/ expenditure are out of accumulated savings: Any accumulated savings like incomes from mutual funds, stocks, PF etc. or bank accounts and deposits, they are handled under this option.
Action Needed: Recheck your dues on these savings. In case, if there’s a mistake then explain the details in the remarks section.
3. Self-Investment/ expenditure are out of gifts/ loans from others: Select this option if the transaction is related to money received as gift or loans.
Action Needed: These tax treatments related to gifts or loans are to be handled with extreme care. If required, take advise from a professional.
4. Self-Investment/ expenditure are out of foreign income: Go for this option if the income earned in the investment in question is from a foreign country.
Action Needed: For claiming relief beneath the Double Taxation Avoidance Agreements (DTAA), collect proofs of income earned, residential status and any asset/investment related statements i.e. records comprising the inflow and outflow of cash.
5. Self-Income from transaction is exempt: Opt for this if the proceeds are subject to the IT Act like income from an insurance policy, PPF maturity money, long-term capital benefits, etc.
Action Needed: Have the proofs prepared and explain for the no liability factor as this was an exempted income.
6. Self-Income from transaction is below taxable limit: If the income in question is below INR 2.5 lakh, choose this option.
Action Needed: In this case, re-calculate your proceeds and check whether any money left due.
7. Self-Income from transaction relate to different AY: If the income in question was chargeable in a different fiscal year, click this option.
Action Needed: Under the remarks, fill the right year for taxation and be ready with your proofs.
8. Self-Not Known: If the investment or income does not come under any of the aforementioned genres, opt this.
Action Needed: These will be very rare, so your remarks section would be filled with a strong valid explanation.
9. Other PAN: This is to be selected when wrong PAN number is in question.
Action Needed: Simple it is, provide the correct PAN number in remarks.
10. Not Known: If nothing is clear, select this option.
Action Needed: You will be informed with details, wait till then.
11. I need more information: Go for this option if you have a bit idea about what the transaction is conveying, but you need more information about the same.
Action Needed: The department will respond to you. Wait for a while.
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