You have not been paying your taxes and think that you can get away with it? Do you know the various ways in which the IT department keeps a track of taxpayers like you and me?
Is there any time frame for which the IT department keeps a track of your tax returns?
In a chat with readers on June 14, Get Ahead tax expert Mahesh Padmanabhan answered these and many more queries related to the deadline for filing tax returns for 2006-07 and the new income tax forms.
For those of you who missed the chat, here is the transcript.
Part I -- Tax returns: The July 31 countdown begins
Shashikant asked, Sir I have lost my PAN card & I do not have any proof of the lost PAN card for obtaining a new card. How long it takes to get the new PAN card & what are the charges? I want to file my returns by 31st July '07.
Mahesh Padmanabhan answers, In case you know your PANm then you could go online and verify the correctness of your number at www.tin-nsdl.com through the register my PAN link. Also, new a pan card could take anywhere between 10 - 30 days. The charges levied by UTI or NSDL is Rs 67.
Parth asked, Mahesh, in Form 16 my employer has shown the TDS that he deducted from my salary (Monthly deposits of TDS Table). The total TDS amount is around Rs 17,200. But while calculating tax he has mentioned only Rs 14,500 as TDS in the upper column while calculating the income for the year. Please tell me if I'll get refund of Rs 17,200 full or just Rs 14500?
Mahesh Padmanabhan answers, In case the Form 16 states tax deducted as only Rs 14,500, then you would get the credit only for such amount. I guess your employer might have worked out the correct tax figure for you and might have adjusted the excess recovery against some other employee. This is a regular practice and you would need to take the differential amount from your employer and not the ITD.
amit77 asked, If I have not filed tax return of last year ('06 - '07) then what are the chances that IT can catch me ? Is there any time limit for which thay can monitor my tax return?
Mahesh Padmanabhan answers, The ITD is extensively connected through data sharing arrangements and data mining systems. Moreover, they also track major movements through AIR (Annual Information Reports) that come from various entities. As far as you are concerned, you would need to weigh the cost of filing the return with the penalty of Rs 5,000 that could be levied for non-filing.
ShahAmarish asked, I am having income from salary, short-term capital gain, and business income for the financial year 2006 - 2007. In which form I should file my IT return?
Mahesh Padmanabhan answers, You could use ITR 4.
sbjoshi asked, I have some losses from stock/derivative trading. Will I be able to carry forward these by filing the return?
Mahesh Padmanabhan answers, The schedule CFL allows you to specify the amount that you need to carry forward to the future year.
RamS asked, I haven't filed returns for 4 years. Salaried and some share income. Can I still file for the past 4 years?
Mahesh Padmanabhan answers, You could file your returns at best for 2 years and that would be for financial years 2005-06 and 2006-07.
soniya asked, Is it mandatory to file return if my only source of income is private job & I have left my job.
Mahesh Padmanabhan answers, It is mandatory to file returns in case you have income that exceeds the taxable limit. In case you have had salary income and, being a woman, if it exceeds Rs 1.35 lakhs, then you would need to file your returns.
karthi asked, I haven't filed my tax returns for the last year. But my employer had given me Form 16 and I don't have any claims from IT Dept. Is it OK?
Mahesh Padmanabhan answers, Regardless of whether you have any refund due from the department or payable to the department, you would need to file your returns in case your income exceeds the threshold limits.
raman asked, I had 2 PANs because the earlier pan which I made was made as a Hindu Undivided Family. So I again made it. In my first company I am having PAN with HUF and another one I have different made as an individual. How should I file my return?
Mahesh Padmanabhan answers, Please note to use the correct PAN as the TDS credit is against a particular PAN. In case you are filing two separate returns for the HUF and yourself, then you would have trouble claiming the credit.
You could claim the TDS credit correctly against the specific PAN and thereafter submit an indemnity bond to the ITO at the time of assessment so as to enable the ITO to rectify the mistake.
Mahesh Padmanabhan says, Thanks to all viewers for participating in the chat session.
