What is ITR 1?

It is income tax return form filed by salaried taxpayers, For Tax payers who has capital gain or have more then 2 houses should file their income tax return in ITR 2 Form.

If my Employer is paying me salary after deducting tax, do I still need to file return?

Yes, Deduction of TDS and Filing of Income tax return is two different things. While it is your employers responsibility to deduct TDS from your salary at an average rate before making payment to you. It is your responsibility to properly calculate and file a correct return to IT Department each year. Don’t be under impression that once TDS is deducted, you need not to file IT return.

Who is responsible for filing Income tax return?

Actually it is the person, who is earning the income is responsible to file return not thee person who is paying it. For example if you are a salaried person then you are responsible to calculate and pay your proper taxes, not your employers. In some case people get confused with deduction of TDS with filing of return, While Deduction of TDS, payment and Filing of return is employers responsibility, Filing of income tax return is Employees responsibility.

I forget to submit details of my tax saving to my employer. What should I do now?

You can still claim the deductions by filing IT return and can get refund of extra income tax paid by you. We can help you to calculate and file return properly to get your refund faster.

I changed my job last year, how should I file my IT return?

You need to show both of your form 16 and file IT return by combining data from both the form. You need to consult an CA to file it correctly, as merging two forms and calculation of deduction can be complicated.

Should I show only current form 16 and don’t show from last employer?

Many Employees do that to not to pay taxes, however never try that it can be a costly affair. Many Employees feel if they hide the last form 16, Department will never come to know. However when your last employer will file their TDS return it will clearly show your PAN number along with amount paid to you. Hence Department easily can find that you have purposely hidden the income. In such case they can send you notice and impose penalty ranging from 100 %to 300%. So suppose your tried to save 1 lakh Rs as tax, But in case of penalty you will end up paying 4 lakhs i.e. 1 Lakh tax and 3 lakh penalty.
Hence never try to hide the fact instead you can save more taxes by tax planning legally.

Why there is huge tax is showing when I am filing both of my form 16 after a job change?

This happens when you don’t inform your current employer about your last employers earning, then the tax deduction by your current employer is done only on the basis of salary paid by them, Further sometime you get double deduction on your tax saving. Hence when you merge both there are chances you will end up paying huge tax. To avoid when you join the new company you should submit previous earning details along with proposed tax saving.

What are consequences of not filing Income tax return?

If you have not filed return despite you are liable to file return, You can be charged to pay interest on due tax amount and also liable for Rs/- 5000 penalty u/s 271F. In case you have received a notice from Income Tax department then it has to be filed within the time line given then you can also face harsh penalty along with imprisonment.

What is the Last date to file Income tax return Online?

1) For Persons liable for Audit Due date is 31st September of Assessment year.
2) For other persons it 31st July of Assessment Year.

What is tax on ESOP?

ESOPs are charged at two stages, once when it is allotted and once it is sold. On allotment the difference between market price and allotment price is treated as salary income. At the time of final sale the difference between purchase cost and sale is treated as Long term or short-term capital.

Why should I seek professional help to file Share transaction related return?

When you are dealing in shares then tax part need to be decided on the basis whether you are trading or investing. If your are trading then the taxability will be completely different as compared to taxability of an investor. Further each transaction needs to be classified.

Who can file income tax return for salaried taxpayers?

Tax return can be filed by tax payer himself, by any CA, Tax consultant, Tax return preparer, IT filing agents, or IT filing consultants, who has knowledge and experience about a proper and accurate return filing. In Income tax act, it has left on taxpayer to choose self-filing or take services of other Income tax consultants.

Is it always required to file return through Tax Consultants or Tax return preparer?

No there is no such requirement in Income Tax Act 1961, It completely depends on tax payer. If taxpayer is well versed with applicable tax laws and related implication. He can choose to file himself. However if taxpayer is not well versed or not up to date with latest changes in Income tax law, He should better to take professional assistance to file his return. Rather then filing a wrong return and get a notice. He can appoint a CA firm, Tax Consultant, Income tax consultant or Tax return preparer for it. However if he has some special transactions such a property, or shares then it is always good to trust expert firms like AKT Associates, who has in house CA and experts along with in-house software to file correct return along with best possible tax saving for you.