Here are four important facts about filing your Income Tax returns in India. The Income Tax returns filing is mandatory, there is penalty for not filing, due date for filing and disadvantages of filing beyounnd due date.

(1) Income tax Filing is mandatory

Income tax return filing is mandatory for all tax payers even if you are a salaried employee, where tax is deducted at source. This is because as there could be instances where you have earned an income other than your salary income, for example, even in the form of interest earned in FDs that are taxable!

(2) There is penalty for not filing returns

Failing to file returns you will be levied a penalty in the form of a penal interest of 1% on the existing tax liability.

If you delay beyond March 31st 2010, irrespective of whether you have nil tax to pay or pending taxes, you will be charged a penalty of Rs.5000 along with any penalty payable if any for pending taxes.

(3) Date till when you are allowed to file returns or Pay tax

Legally you are allowed to file your returns before the next assessment year which starts on March 31st 2010, remember to pay up any tax due before July 31st.

If you delay beyond March 31st 2010, irrespective of whether you have nil tax to pay or pending taxes, you will be charged a penalty of Rs.5000 along with any penalty payable if any for pending taxes.

(4) Disadvantage of filing tax return beyond due date July 31st

The individual doing so will not be eligible to file a revised return if he discovers any omission or wrong statement.

Time limit for filing revised return is one year from the end of the assessment year or before completion of assessment.

Remember that having tax deducted at source if you are employed is only half of the process and you need to file your returns to complete the process. This will avoid any hassles with the income tax officials. Prepare to file your returns as early as possible instead of waiting for the due date to arrive. You can use the online filing service from TaxSmile for filing your returns in a short time.

This article is written by Sunil K who writes regularly for popular website like IndiaSummary.com and Bollywood Billi. Sunil K is available for writing assignments for publishing by websites if the references and links as per policy and mentioned.

Article Source:http://www.articlesbase.com/taxes-articles/four-important-facts-about-filing-your-income-tax-returns-in-india-1079305.html