There are so many people that ask me this questions – Why should I file my Tax returns, if I have already paid my taxes. Infact, many wrongly believe that there is no need to file the tax returns at all. This is a completely wrong perception and if you are one of those who thinks that way, please read on…
Remember, it is our constitutional obligation to file tax returns when you are required to do so. So your job does not end at paying taxes, filing returns is equally important.
Who should File tax returns
If your income is above the basic tax exemption limit, you are liable to file your tax returns. So you should pay your returns if you
- have taxable income exceeding Rs.160,000 p.a.
- are a Women have taxable income exceeding Rs.190,000 p.a.
- are a Senior Citizens have taxable income exceeding Rs.240,000 p.a.
I know number of my friends who do not file a return – essentially they feel that with hundreds & thousands of them who are paying taxes, they are comparatively small fish. There are thousands who evade taxes in Lakhs of rupees, no one will notice a person who evades a few thousand rupees in taxes – THATS NOT TRUE !
Methodology to nab Tax evaders
The Tax department does not catch based on amount of taxes liable, but based on a system. In order to pick up cases of likely tax evasion, the tax department uses a computer-aided scrutiny system (CASS) that picks up cases by inputting various criteria. You may just be the unlucky one and you can come under scrutiny which is inviting trouble for yourself as you will be required to furnish all details that he asks for which could include, bank account statements, list of all assets owned by you and your family, details of all family members who reside with the you, and then the tax officer will do a match analysis of income and expenditure to figure out the amount of tax evasion.
Fine for Tax Evasion
Individual found to be concealing income will be charged a penalty and that amount can be anywhere up to 3 times the amount of tax evaded. So if your tax evasion amount is Rs. 50,000, if your account is under scrutiny, you may have to pay a penalty of anywhere between Rs. 50,000 and Rs. 150,000 on a case to case basis.
More than the fine, it is also an un-pleasant experience which can be emotionally and mentally draining.
Ok, so if you are ready to File your taxes for FY 2009 – 2010, You can download this Income Tax Return Forms:
- For Individuals and HUFs not having Income from Business or Profession: Word PDF
- For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship: Word PDF
- For individuals & HUFs having income from a proprietary business or profession: Word PDF
- For firms, AOPs and BOIs: Word PDF
Again, never try to evade taxes, it is sure to land you in trouble one time or the other !