ASSESSMENT PROCEDURE: ILLUSTRATION 1

Mr. Hirai carned Rs. 70,000 during the tax year 2007. He was charged tax in tax year 2005 when his income was Rs. 3,00,000. Whether he should furnish the return for the tax year 2007?

Solution

Yes. Mr. Hirai should furnish the return of income for tax year although his income in this year was less than the minimum taxable limit, because he was charged to tax in one of the two tax years preceding this tax year.

Furnishing a Wealth Statement

Filing a Wealth Statement and a wealth reconciliation statement along with a return of income is compulsory for the following persons:

(a) Every individual taxpayer filing a return of income whose

declared income of last year or current year is Rs. 10,00,000 or more.

(b) Any person other than company who falls under final tax regime

(FTR) and has paid tax amounting to Rs. 35,000 or more.

(c) Every member of an AOP whose share from the association of persons before tax is Rs. 10,00,000 or more.

(d) Every person to whom Commissioner of Income Tax serves a notice for filing a Wealth Statement.

When to Furnish the Return of Income?

A taxpayer should furnish the return of income according to the following details:

(a) The companies whose tax year ends between 1″ January and 30 June, the return of income must be furnished upto 31 December of the same year.

(b) A salaried person should file the return of income through e-

portal or if complete tax has been paid by his employer Dfa Ho should file the prescribed certificate upto 31″ August of the same tax year.

(e) All other persons must funish their returns of income by 30th September next following the end of their tax year.

(d) In case a person is discontinuing his business and the Commissioner has issued him a notice to furnish the return, the person should furnish the return by the date specified in the notice.