TAX TALK-25.04.2011-THE HITAVADA
TAX TALKBY CA. NARESH JAKHOTIA
(Chartered Accountant)
“DUE DATE OF PAYMENT FOR TDS DONE IN THE MONTH OF MARCH-2011 IS 30th APRIL 2011”
Query 1]
Due to my carelessness, I could not file my return of income for the F Y 2009-10. If I file now i.e., in April 2011, whether penalty of Rs. 5,000/- will be imposed compulsorily in the following scenarios:
1. Gross Total Income below exemption limit.
2. Net Income below exemption limit.
3. Self assessment tax is paid
4. Refund Due.
[itr_ngp@rediffmail.com]
Opinion:
1. The penalty of Rs. 5,000/- may be levied for non-filing the income tax return if the assessee, who is required to file the income tax return, fails to file the income tax return on or before the end of the relevant Assessment year. The liability to file the income tax return, for individual/HUF, arises if the Gross Total Income exceeds the maximum amount not chargeable to tax.
2. The penalty is not a compulsory or mandatory penalty. The penalty shall be imposable after giving a reasonable opportunity of being heard. If there exists a reasonable cause for not filing the income tax return before the end of the relevant Assessment Year, Assessing officer may drop the penalty proposed.
3. The fact that a] Net income is below the basic exemption limit orb] Self Assessment Tax is fully paid within the Assessment Year orc] Refund is due in the relevant Assessment Year do not discharge Assessee from the liability of filing income tax return. However, this fact MAY be considered by the Assessing Officer while considering the reasonable cause for levying penalty u/s 271F.
Query 2]
Sir, What is the due date of payment of T.D.S. where the income is credited (not paid) to the payee account on 31.03.2011? What will be the date of T.D.S Payment if the income is paid in the Month of March-2011?
[Kamal R]
Opinion:
All Tax Deducted At Source (T.D.S) by any Deductor (other than an office of the Government) shall be paid to the credit of the Central Government—
(a) On or before 30th day of April where the income or amount is credited or paid in the month of March; and
(b) In any other case, on or before seven days from the end of the month in which deduction is done.In your case, whether the income is credited OR paid in the Month of March-2011, the due date of T.D.S deposit will be same i.e., 30th April-2011.
Query 3]
I am state Government employee, my total income from salary from April-2010 to March- 2011 is Rs. 1, 53, 369/- & Salary for year 2009 to March-2010 was Rs. 35,032/-. I have received arrears of Rs. 2, 15, 000/- out of Rs. 1, 28, 000/- for year 2009 to March 2010 & Rs. 87,000/- for April- 2010 to July-2010 which I received in July-2010. HRA & Profession tax is Rs. 16,400/-. I have invested Rs. 35,000/- in NSC in February- 2011. For above detail how much tax I have to pay? My department already deducted Rs. 13,096/-from February salary. Can I get relief under section 89? Can I file income tax refund? If yes, then how much amount I can get as refund?
[harshad.boharupi@sbi.co.in]
Opinion: -
In the absence of all the relevant information like various allowances included in the salary income, details about your house property whether rental or self owned, other income details etc, the amount of tax /refund & relief in respect of arrears of salary cannot be determined. However, you may note that:
1. RELIEF U/S 89:
You can get relief u/s 89 of the Income Tax Act-1961 towards the arrears of salary pertaining to F.Y. 2009-10 received by you in the year F.Y. 2010-11. Prima facie, it appears that you can save entire amount of additional tax arising out of the arrears of F.Y. 2009-10.
2. HOUSE RENT ALLOWANCE (H.R.A.) :
You can also claim deduction towards HRA U/s 10(13A) if you are living in a rented house. For H.R.A
the least of following is exempt from tax:
a] An amount equal to 50% of salary, where the residential house is situated at Bombay, Calcutta, Delhi or Madras and an amount equal to 40% of salary where residential house is situated at any other place;
b] House rent allowance received by the employee in respect of the period during which the rental accommodation is occupied by the employee during the previous year; or
c] The excess of rent paid over 10% of salary.
3. PROFESSION TAX:Entire amount of Profession tax paid is deductible u/s 16(iii) of the Income Tax Act-1961.
(Chartered Accountant)
“DUE DATE OF PAYMENT FOR TDS DONE IN THE MONTH OF MARCH-2011 IS 30th APRIL 2011”
Query 1]
Due to my carelessness, I could not file my return of income for the F Y 2009-10. If I file now i.e., in April 2011, whether penalty of Rs. 5,000/- will be imposed compulsorily in the following scenarios:
1. Gross Total Income below exemption limit.
2. Net Income below exemption limit.
3. Self assessment tax is paid
4. Refund Due.
[itr_ngp@rediffmail.com]
Opinion:
1. The penalty of Rs. 5,000/- may be levied for non-filing the income tax return if the assessee, who is required to file the income tax return, fails to file the income tax return on or before the end of the relevant Assessment year. The liability to file the income tax return, for individual/HUF, arises if the Gross Total Income exceeds the maximum amount not chargeable to tax.
2. The penalty is not a compulsory or mandatory penalty. The penalty shall be imposable after giving a reasonable opportunity of being heard. If there exists a reasonable cause for not filing the income tax return before the end of the relevant Assessment Year, Assessing officer may drop the penalty proposed.
3. The fact that a] Net income is below the basic exemption limit orb] Self Assessment Tax is fully paid within the Assessment Year orc] Refund is due in the relevant Assessment Year do not discharge Assessee from the liability of filing income tax return. However, this fact MAY be considered by the Assessing Officer while considering the reasonable cause for levying penalty u/s 271F.
Query 2]
Sir, What is the due date of payment of T.D.S. where the income is credited (not paid) to the payee account on 31.03.2011? What will be the date of T.D.S Payment if the income is paid in the Month of March-2011?
[Kamal R]
Opinion:
All Tax Deducted At Source (T.D.S) by any Deductor (other than an office of the Government) shall be paid to the credit of the Central Government—
(a) On or before 30th day of April where the income or amount is credited or paid in the month of March; and
(b) In any other case, on or before seven days from the end of the month in which deduction is done.In your case, whether the income is credited OR paid in the Month of March-2011, the due date of T.D.S deposit will be same i.e., 30th April-2011.
Query 3]
I am state Government employee, my total income from salary from April-2010 to March- 2011 is Rs. 1, 53, 369/- & Salary for year 2009 to March-2010 was Rs. 35,032/-. I have received arrears of Rs. 2, 15, 000/- out of Rs. 1, 28, 000/- for year 2009 to March 2010 & Rs. 87,000/- for April- 2010 to July-2010 which I received in July-2010. HRA & Profession tax is Rs. 16,400/-. I have invested Rs. 35,000/- in NSC in February- 2011. For above detail how much tax I have to pay? My department already deducted Rs. 13,096/-from February salary. Can I get relief under section 89? Can I file income tax refund? If yes, then how much amount I can get as refund?
[harshad.boharupi@sbi.co.in]
Opinion: -
In the absence of all the relevant information like various allowances included in the salary income, details about your house property whether rental or self owned, other income details etc, the amount of tax /refund & relief in respect of arrears of salary cannot be determined. However, you may note that:
1. RELIEF U/S 89:
You can get relief u/s 89 of the Income Tax Act-1961 towards the arrears of salary pertaining to F.Y. 2009-10 received by you in the year F.Y. 2010-11. Prima facie, it appears that you can save entire amount of additional tax arising out of the arrears of F.Y. 2009-10.
2. HOUSE RENT ALLOWANCE (H.R.A.) :
You can also claim deduction towards HRA U/s 10(13A) if you are living in a rented house. For H.R.A
the least of following is exempt from tax:
a] An amount equal to 50% of salary, where the residential house is situated at Bombay, Calcutta, Delhi or Madras and an amount equal to 40% of salary where residential house is situated at any other place;
b] House rent allowance received by the employee in respect of the period during which the rental accommodation is occupied by the employee during the previous year; or
c] The excess of rent paid over 10% of salary.
3. PROFESSION TAX:Entire amount of Profession tax paid is deductible u/s 16(iii) of the Income Tax Act-1961.
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