Nov 7, 2008

The Three Other Kinds of Income Tax Returns

WE have already discussed about regular returns and belated returns under section 139(1) of the IT Act in earlier post 12 Practical Tips About Filing Income Tax Returns but there are certain other kinds of income tax returns which you should know about.

1. Revised Returns
It is quite possible that after submitting the return you may realize that you have inadvertently committed some error. It is possible to rectify such bona fide mistakes/omission by filing a revised return but remember that a belated return (i.e., the return filed after due date) cannot be revised.

Further, a revised return can be filed at any time before the expiry of one year from the end of the assessment year (or we can say two years from the end of relevant financial year). For example for the FY 07-08 (AY 08-09), the revised return can be filed up to March 31, 2010.

2. Defective and Invalid Returns
In case of any mistake or omission in your return of income, the assessing officer can consider such return to be defective and if such return is not rectified within a period of 15 days ( or such extended period which may be granted by assessing officer on a specific request) it becomes invalid (which is equivalent to non-filing of return).

3. Return Filing by Non-residents
Under section 115G of the I T Act, it is not necessary for a non-resident Indian (please note that it is only for NRIs) to file a return of income if his taxable income consists only of investment income and/or long term capital gains from shares/debentures/deposits of an Indian company or central government securities, acquired or purchased with a convertible foreign exchange and TDS has been deducted at source.

In all other cases, if the total taxable income of non-resident exceeds the basic exemption limit, he/she will have to file a return of income.

One more point worth noting is that unlike in case of residents, where the basic exemption limit is more in case of a women and a senior citizen, there is no such distinction for Non Residents (i.e., irrespective of whether the non-resident is a man, women or a senior citizen, the basic exemption limit remains the same which is Rs 1.10 lakh for AY 2008-09 and Rs 1.50 lakh for AY 2009-10).

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