Filing Your IT Returns

Individuals with taxable income need to file their Income Tax returns, subject to certain conditions under the Income Tax Act, 1961. Beginning AY 2012-13, salaried individuals whose taxable income is up to Rs 5 lakh will not be required to file return of income.

Key Points

• In order to file Income Tax returns and to claim TDS refunds, it is essential to obtain a Permanent Account Number (PAN).
• Income Tax returns may be filed through a Chartered Accountant or a Tax Return Preparer, or directly online.
• The Central government has exempted those individuals from the requirement of filing return of income for AY 2012-13 whose total income relevant for the AY does not exceed Rs 5 lakh and consists only of income chargeable to Income Tax under the heads ‘Income from Salaries’ and ‘Income from Other Sources’, subject to certain conditions.

Q1: My wife works with an MLM company. She has received various amounts as incentives totalling Rs 43000 during FY 2011-12, on which TDS of  Rs 4300 has been deducted. She does not have any other income. Can she get the TDS refunded? If yes, how? Also, if she wishes to claim TDS refunds online, which form should be used? She has never filed Income Tax returns before this.

- Umesh Walvekar

A: First, you wife will have to obtain a Permanent Account Number (PAN), if she does not possess one already. Thereafter, in order to claim TDS refunds, she will have to file her return of income for FY 2011-12. She may file her return through a Chartered Accountant or a Tax Return Preparer, or directly online. If the incentive income is shown as her business income, the form to be used is ITR 4. If she claims that the incentive income is ‘Income from Other Sources’, the ITR 2 form should be used.

As your wife is filing her IT returns for the first time, she must furnish a list of all her assets and liabilities, as also how she has earned the incentive income, that is to say, what services were provided. The Assessing Officer may ask for such other details as may be deemed necessary to ascertain that the said incentive is the only income and that it has
been earned by her.

Q2: I am employed as an office assistant with a private company. W.e.f. April 1, 2012, my salary is expected to be at Rs 20000 per month, all inclusive. I am paying life insurance premium and provident fund contribution amounting to about Rs 50000. Do I need to file my return of income?

- Pravin Wagh

A: In exercise of the powers vested vide Section 139(1C) of the Income Tax Act, 1961, the Central government has exempted the following class of persons from the requirement of filing return of income for AY 2012-13: Individuals whose total income relevant for the AY does not exceed 5 lakh and consists only of income chargeable to Income Tax under the heads ‘Income from Salaries’ and ‘Income from Other Sources’, subject to conditions stated hereinafter:

1. He/she has reported his/her Permanent Account Numberto his/her only employer.
2. He/she has reported his/her income chargeable under the head ‘Income from Other Sources’ to his/her only employer.
3. He/she has received a certificate in Form 16 from his/her only employer.
4. His/her liability of tax has been discharged through tax deduction at source by his/her only employer.
5. He/she has no claim for refund of tax due to him/her.

In view of these points, you need not file your return of income if you satisfy the conditions stated.

Q3: I am historian and am working on a freelance basis. My income is not regular. At times, my remuneration is for doing research. I understand that research fees are exempt from tax. Should I file my return of income?

-Dr Amol Divkar

A: You have not mentioned your age. However, assuming that you are not a senior citizen, you will need to file your ncome Tax return if your taxable income exceeds the basic exemption limit of  Rs 180000 (Rs 200000 for any financial year, starting April 1, 2012). For a research scholar, the scholarship granted to meet the cost of education is exempt u/s 10(16) of the Income Tax Act, 1961.

W.e.f. April 1, 2011, any income of an approved research association (prior to this, it was restricted to a scientific research association) is exempt u/s 10(21) of the said Act.