Expert Zone

Straight from the Specialists

Tying up loose ends after filing your income tax returns

Photo

(Any opinions expressed here are those of the author and not of Thomson Reuters)

There was a record increase in tax returns filed electronically this year after new rules made it mandatory for taxpayers with a taxable income of more than 500,000 rupees to file returns online. This change added to the last-minute rush, with the government extending the deadline by five days to Aug. 5.

Tax filing season can be painful and the last-minute rush has been known to cause a few errors. Here’s how you can make the process more efficient.

SUBMISSION OF ITR-V
Do not forget to mail your signed ITR-V acknowledgment form to the Central Processing Centre (CPC) in Bangalore within 120 days of filing your return, else it shall be treated as if you never filed it. Check the ITR-V status online. If it has not been received, you have to send it again within the same time period. The tax filing process is completed only once your ITR-V reaches the CPS.

FILE RETURN EVEN IF YOU MISSED DEADLINE
If you still haven’t filed your tax return for 2012-13, no need to panic as long as the taxes have been paid. There will be no penalty if the return is filed before March 31, 2014. Missing that deadline may cost you 5,000 rupees. But if there are unpaid taxes left, you need to rush as interest will be charged till the time you pay those taxes.

Time for a shift in the tax incentive regime?

Photo

(Any opinions expressed here are those of the authors and not of Reuters)

The Indian economy is currently on the path of reform with the government liberalising FDI policy and relaxing overseas debt funding. And with the union budget just around the corner, investors are hoping for incentives on the tax front as well.

Traditionally, the government provides profit-linked tax incentives to promote investment in specified industries/states. However, considering the increasing need for investment in developing economies like India, the government is considering a shift from profit-linked tax incentive schemes to investment-linked tax incentive schemes. The desire for such a shift was clear under the proposed Direct Tax Code Bill.

  • Editors & Key Contributors