Few Things You Should Do Before 31.03.2017- Income Tax 2017

Income tax 2017-Important for Salaried Person

Many salaried persons forget to pay advance tax because they think bank has deducted tds on salary income and on interest on Fixed Deposits/ Recurring Deposits i.e. RD. This may not be correct if your income falls under 20% or 30% slab rates and your advance tax is more than Rs. 10,000/- . Please read this article completely till end and help others.  

1. File pending IT for financial year 2015-2016 to avoid penalty
Though the general due date of filing of Income Tax returns is 31st July of the year following the financial year, a few of you wouldn’t have been able to file the return by the due date and then must have forgotten the matter altogether. Please file your pending income tax return for the financial year 2015-2016 by 31st March 2017. In case you have taxable income and fail to file the returns for the financial year 2015-2016 by 31st March 2017, the assessing officer can levy a penalty of Rs. 5,000 for this default. However, the assessing officer can not do so without giving you an opportunity to explain the reason for such failure. 
Since the return has not been filed by due date, you can not revise the return later on. So please be very careful while filing the return and ensure that all the particulars are correctly stated and all the income are correctly included in the return. Please note that in case the tax payable in respect of any of the returns which you are planning to file now, was not paid either as advance tax or TDS, you may have to pay the interest for non payment of advance tax as well as for delay in filing of income tax return @ 1% for each of the default. So effectively if adequate tax was not paid earlier you land up paying exorbitant interest @ 2% for each month of the delay.

2. File pending IT for financial year 2014-2015 as this can not be filed beyond 31st March 2017 
As per the present tax laws, you can file income tax returns for two financial years at any given point of time, so in case you have not filed your income tax return for the financial year 2014-2015, you have the last chance to file this return by 31st March 2017. So those of you who have not filed their income tax returns for the F. Y 2014-2015 financial years, you have the last chance to file it by 31st March 2017

3. Payment of advance tax 
Majority of the tax payers are salaried and their tax liability is discharged by the employer as the tax is deducted at source at the time of payment of the salaries and it is only the self -employed tax payers who normally have to pay advance tax.However even in case of salaried employees if you have any other taxable income for the year like capital gains, interest on fixed deposits etc. you have to pay advance tax on such income in case such income is not reported to your employer.In cases of interest income, though the tax is deducted at source at the rate of 10% by the payers, you may still have to pay advance tax in case your applicable slab rate is more than 10%. 

In cases of sale purchase of any capital assets like shares etc. on which you are liable to tax, you are supposed to discharge this liability by way of payment of advance tax. 
Though advance tax can be paid in four installment and in case you have missed three earlier dates please pay the balance advance tax by 15 th March which is the date for last installment. Even any advance paid by 31st March is also treated as advance tax.
Please note that you need not pay any advance tax in case you advance tax liability does not exceed Rs. 10,000/- for the year. 
Moreover in case you are a senior citizen and are not engaged in any business or profession, you need not pay any advance tax. 

In the above two cases the tax can be paid while filing your income tax return.

Please note that you are required to file the income tax return by the due date and pay the tax then. In case of delay, you will have to pay interest on amount of the tax payable. In case you are liable to pay advance tax and fail to pay it fully, you may have to pay double interest, firsts for non payment of advance tax from the 1st day of April and secondly for filing of income tax return delayed beyond the due dates from the due date of filing of your return. You have to pay interest for non-payment of advance tax from 1st April of the next year till the taxes are actually paid. 

4. Filing details of salaries received from earlier employer: 
If you have worked with more than one employer during the previous year and you have not provided the details of salaries received from the previous employers to current employer, please provide the same to your current employer immediately so that the current employer can take the same into account while making tax calculations. . The same details have to be submitted to your employer in form no. 12B. In case you do not do this now, you may get the shock when you are required to pay huge tax at the time of filing of your return of income. This happens because all the employers would have given you the benefits of initial exemption as well as deduction under Section 80 C thus resulting into deduction of lower tax as compared to your actual liability. 

5. Minimum contribution to PPF account 
This is for the persons who have opened a PPF account either in their own name or in the name of their children as well. It may so happen that you have already exhausted the deduction available under Section 80 C through other means and need not contribute any amount to the PPF account, you still need to contribute the minimum amount of Rs. 500/- every year in each of the PPF account to avoid the account becoming dormant. The dormant account can be made active account by payment of Rs. 100/- as penalty and contribution of Rs. 500/- for each year of default.Further If you have opened PPF account during Financial year 2001-02 ,then your PPF account fifteen year is going to be completed on 31.03.2017 .If you want to continue the account with contributions for next five years then apply for it in your Bank/Post office before 31.03.2017

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