ITR Filing & Services

Income Tax Return (ITR) filing

Income Tax Return is an important part of Income Tax. It is the way by which an assessee process for paying his tax to Income Tax Department. As per the provisions of Income Tax Act, 1961, filing of Income Tax return is a legal obligation of every Individual whose income exceeds the maximum limit of non-taxable income for the full financial year i.e. from 01 April to March 31 of the following year, for example for the year 2013-2014 (which is also called the Assessment Year) the period is 01 April 2013 to 31 March 2014. In case of salaried class assessee the information about the income in the particular financial year supported with the form 16 (the certificate for tax deducted at source), which is issued by the employer at the end of the financial year.

"Income Tax Return" is a term which is often used when we talk about income tax. It is a way by which we pay this tax. When total annual income of a person, including all sources, is more than minimum exemption limitation then that person is liable to pay income tax.

Documents to preserve

Since the tax-payer is not required to submit any additional documents along with the return of income, the documents may be called at the later stage by the Income Tax Officer to check the correctness of the claim made. Hence, it is advised that the individual preserve all the documents required to substantiate the return of income filed. Some of the documents are enumerated below:

• Detailed calculation of taxable income and amount of tax payable / refundable.
• Form No. 16 / 16A (original).
• Counterfoil of all the tax payments made during the year.
• Copy of documents concerning sale of investments and properties.
• Copy of bank statements.
• Copy of proof for all the deductions and exemptions claimed in the return of income.

Common mistakes people make while filing tax returns

• The most common notion among salaried employees is that since tax has already been deducted from their salary, there is no need to file their income tax returns. This is not at all true or legal. Even though tax has been deducted and there is no further liability to pay tax, an employee has to compulsorily file his / her income tax return. Form No. 16 received from employer is not their income tax return.
• Employees do not include the interest that they receive on their savings bank account. The entire interest earned on your savings bank account is taxable.
• Omission of income received by a minor child. A minor child is not required to file a separate return of income. However, this income has to be included in the hands of either of the parents, although it might be a small amount of bank interest.
Each service class, business, NGO, professionals, companies etc have a distinctive way of filing income tax returns. With our specially designed process you do need to worry about your returns filing anymore. Our highly trained and capable team of experts will make sure your returns are filed in time and correctly.

We provide dedicated tax filing service for the following:

Tax Planning for Salaried Persons

Tax Planning for Income Rax Return for SMEs/ Retailers / Professionals / Freelancers

Income Rax Return for NGO / Trust / Society (Co-Society)

Income Rax Return for Firms, Companies, LLPs

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NRI Taxation (Non-Resident Indians)

With a view to attract investment by Non-Resident Indians and Indian Nationals living abroad, special provisions exist in Chapter XIIA providing incentives in the form of reliefs and concessional tax rate as also simplifying the tax assessment procedure for such persons. Non-resident Indian has been defined as an individual, being a citizen of India or a person of India origin, who is not a resident. A person is of Indian origin if he or either of his parents or any of his grand parents was born in undivided India. These special provisions are dealt with in Chapter XI.

As mentioned in Chapter-II, a person who is non-resident is liable to tax on that income only which is earned by him in India. Income is earned in India if:
• It is directly or indirectly received in India; or
• It accrues in India or the law construes it as having accrued in India.

The following are some of the instances when the law construes and income to have accrued in India:
• Income from business arising through any business connection in India (refer Chapter X);
• Income from property if such property is situated in India;
• Income from any asset or source if such asset or source is in India;
• Income from salaries if the services are rendered in India. In such cases salary for rest period or leave period will be regarded as earned in India if it forms part of service contract;
• Income from salaries payable by the Government to a citizen of India even though the services are rendered outside India;
• Income from dividend paid by an Indian company even if the same is paid outside India;
• Income by way of interest payable by the Government or by any other person in certain circumstances (refer Chapter VII);
• Income by way of Royalty if payable by the Government or by any other person in certain circumstances (refer Chapter VIII);
• Income by way of fees for technical services if such fees is payable by the Government or by any other person in certain circumstances (refer Chapter VIII).

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International Taxation/DTAA

International taxation is the study or determination of tax on a person or business subject to the tax laws of different countries or the international aspects of an individual country's tax laws. Governments usually limit the scope of their income taxation in some manner territorially or provide for offsets to taxation relating to extraterritorial income. The manner of limitation generally takes the form of a territorial, residency, or exclusionary system. Some governments have attempted to mitigate the differing limitations of each of these three broad systems by enacting a hybrid system with characteristics of two or more.

Corporate income is taxed at high rates by wealthy countries, and most countries either exempt foreign-source income of domestic multinationals from tax provide credits rather than deductions for taxes paid abroad. Furthermore, individual investors can use various methods to avoid domestic taxes on their foreign-source incomes, in the process also avoiding taxes on their domestic-source incomes.

While economic activity, and tax avoidance activity, is highly responsive to tax rates and tax structure, there are many aspects of tax-motivated behavior that are difficult to reconcile with simple microeconomic incentives. There are promising recent efforts to reconcile observations with theory.

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