Income Tax Return Filing FY2010-11

The Deadline for filing Income Tax Return is 31-Jul-2011

Why to file Income Tax Return

Earlier when I was less aware about taxes, during start of my career, I used to wonder – I pay taxes which is deducted from my salary from my company. I submit all the document related to tax saving investments. Then, Why do I need to file “Income Tax Return”.

Slowly I realised, there are couple of reasons, though for many these would be quite simple enough -

• The tax payment done by company on behalf of employee and deducted from the salary of respective employee comes under category “TDS” Tax Deducted at Source. The employee may have other source of income too apart from his salary, which Income Tax Department may not be aware of, and the Tax Payer need to notify the Department.
• Sometime, there might be some expense done by the tax payer which is not mentioned in the Form 16 (For a salaried person, At the end of financial year, company issues this form which contains details of salary earned by the employee during the financial year and how much tax company have paid on behalf of employee, if a tax payer have only salary as source of income, Form 16, will have all the information he needs to file his tax return) but is allowed for tax exemption, like a donation to a NGO/Cause/Fund, while filing the return, we can mention the same and get refund.
• For a person with salary as only source of income will get his Form 16 from his company using which should file return at every financial year end, for better, even if the net tax payable is NIL.
• Once you file the income tax return, you have a valid document, attested by the Income Tax Department, that shows how much tax you have paid, your source of incomes. It gives you documentary proof by being a tax payer – Its kind of self declaration and getting it certified by the Income Tax Department.
• For people who have multiple source of income other than salary, they do have to pay taxes directly and file the return.