FAQ

Q1. What is Assessment year and financial year?
Financial year starts from 1st April and ends on 31st March (wherein there is income pertaining to the whole year or part of the year). Assessment year is the year immediately following the financial year wherein the income of the F.Y. is assessed.
Q2. How and where income tax has to be paid?
Tax can be paid by way of cash, cheque or draft in any authorised national banks, in the prescribed challan. The challan can be obtained from Income tax Offices.
Q3. Who is liable to pay Income-tax?
Tax can be paid by way of cash, cheque or draft in any authorised national banks, in the prescribed challan. The challan can be obtained from Income tax Offices.
Q4. What is Permanent Account Number (PAN)? Is it compulsory to obtain and quote PAN?
Tax can be paid by way of cash, cheque or draft in any authorised national banks, in the prescribed challan. The challan can be obtained from Income tax Offices.
Q5. Tax has already been paid (by way of tax deducted at source or advance tax) on the total income and there is also no interest payable or refund due. In such a case, is it necessary to file a return of income?

Yes, every person whose total income during the previous year exceeded the maximum amount which is not chargeable to Income-tax should file his return of income in the prescribed form irrespective of whether any tax or interest is payable or refund is due. On his failure to furnish a return before the end of the relevant assessment year, he shall be liable to pay a penalty of Rs.5000/-.

Every person who is liable to furnish a return of his income in form No.2C as per the 'One-by-Six Scheme' should also furnish the same before the due date ( details of the 'One-by-Six Scheme' are available in the separate page of this site). On his failure to do so he shall be liable to pay a penalty of Rs.5000/-

Q6. Is it compulsory to file a return of income when there is loss?
If a person has sustained a loss in the previous year and wishes to carry forward the loss to the subsequent year he should furnish a return of loss in the prescribed form before the due date.
Q7. What are the due dates for filing of returns of income/loss?

The due dates shall be as under :-

  • (a) Where the assessee is a company, the 31th day of October of the assessment year;
  • (b) Where the assessee is a person other than a company.
  • (c) if the accounts are required to be audited, the 31st day of October of the assessment year;
  • (d) where the total income includes any income from business or profession and where the accounts are not required to be audited, the 31st day of July of the assessment year;
  • (e) in any other case the 31th day of July of the assessment year.
Q8. Can a return of income be filed after the due date?
Yes, a person who has not furnished a return before the due date may furnish the same at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment whichever is earlier.
Q9. Where should the return of income be filed?
The return of income should be file with the Assessing Officer having jurisdiction over the person. The jurisdiction of officers in Karnataka & Goa Region is available in the jurisdiction(link) menu of the site.
Q10. Who is an Assessing Officer (A.O.)?
An Assessing Officer is a Joint Commissioner or Joint Director or Deputy Commissioner or Assistant Commissioner or Deputy Director or Assistant Director or Income-tax Officer who has the relevant jurisdiction.
Q11. Are the incomes of all members of the family to be clubbed together for charging to Income-tax?

No, each member of the family will be charged separately on his or her income. There are, however, certain exceptions as stated in Section 64 of the Income-tax Act. Some of these are mentioned below :-

(i) The income arising to the spouse of an individual directly or indirectly from assets transferred directly or indirectly to the spouse by such an individual otherwise than for adequate consideration or in connection with an agreement to live apart shall be included in the income of the individual.

(ii) All incomes of a minor child in excess of Rs.1500 (other than income accruing to him on account of any manual work done by him or from any activity involving application of his skill, talent or specialised knowledge and experience) shall be included in the income of that parent of the minor child whose total income excluding the minor's income is greater.

The income of Hindu Undivided Family (HUF) is taxed separately in the hands of the HUF and income received by the members from out of the income of the HUF will not be charged to tax in their hands.

Q12. Is it compulsory to maintain books of accounts?
Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as notified by the Central Board of Direct Taxes shall keep and maintain books of accounts. Also, every person carrying on business or profession (other than professions mentioned earlier) shall maintain books of accounts if the income from business or profession exceeds Rs.1,20,000/- or the total sales, turnover or gross receipts in the business or profession exceeds Rs.10 lakhs in any one of the three years immediately preceding the previous year.
Q13. Is it compulsory to get the books audited?

(i) Every person carrying on business shall get his accounts audited if the total sales, turnover or gross receipts in business exceed Rs.40 lakhs in the previous year.

(ii) Every person carrying on profession shall get his accounts audited if his gross receipts exceed Rs.10 lakhs in the previous year.

Q14. If I have some information on evasion of tax , to whom should I give this information?
This information should only be given to the Addl.DIT (INV) and such information will be kept confidentional.