education series on income tax and investments

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EDUCATION SERIES ON

INCOME TAX &

INVESTMENTS

PRESENTATION TO KE LEAD

MEMBERS

18TH MARCH 2011

EDUCATION SERIES ON

INCOME TAX &

INVESTMENTS

PRESENTATION TO KE LEAD

MEMBERS

18TH MARCH 2011

MARK D¶SOUZAMARK D¶SOUZA



HAVE YOU GOT YOUR IT REFUNDHAVE YOU GOT YOUR IT REFUND

� Rs. 1,300 crore tax refunds lyingunclaimed

� It could be your fault

� Have you ensured the address inthe PAN database updated?

� You may have given wrong bank

account number or� Misquoted the MICR code of your

bank while filing the IT returns

� Rs. 1,300 crore tax refunds lyingunclaimed

� It could be your fault

� Have you ensured the address inthe PAN database updated?

� You may have given wrong bank

account number or� Misquoted the MICR code of your

bank while filing the IT returns




� Due to this huge amount has piledup over the past 3years inKarnataka & Goa circle alone

� People seldom report the changeof address

� Result tax refund cheques

dispatched to them come backundelivered

� Due to this huge amount has piledup over the past 3years inKarnataka & Goa circle alone

� People seldom report the changeof address

� Result tax refund cheques

dispatched to them come backundelivered




� Most people assume merely givingthe new address in the tax returnpapers would suffice !

� But it is not so !� If address given by you in your

return Form and PAN do not tally

� There would be refund problem� So visit jurisdictional office and

update your address

� Most people assume merely givingthe new address in the tax returnpapers would suffice !

� But it is not so !� If address given by you in your

return Form and PAN do not tally

� There would be refund problem� So visit jurisdictional office and

update your address




� Refunds below Rs. 25,000/- aretransferred through ECS

� Refunds above Rs.25,000/-

cheques are sent to addressmentioned in the PAN throughSpeed Post service

� Unclaimed refunds are kept insuspense accounts of the Banks.

� Refunds below Rs. 25,000/- aretransferred through ECS

� Refunds above Rs.25,000/-

cheques are sent to addressmentioned in the PAN throughSpeed Post service

� Unclaimed refunds are kept insuspense accounts of the Banks.



DO YOU OPERATE YOUR BANKACCOUNT REGULARLYDO YOU OPERATE YOUR BANKACCOUNT REGULARLY

� Unclaimed bank accounts

� RBI has reported that IndianBanks having

� Rs.1,360 crore unclaimed moneyin 1 lakh accounts

� Over 75% of them are savings

Accounts� If a bank account is not used for

10 years it becomes inoperative

� Unclaimed bank accounts

� RBI has reported that IndianBanks having

� Rs.1,360 crore unclaimed moneyin 1 lakh accounts

� Over 75% of them are savings

Accounts� If a bank account is not used for

10 years it becomes inoperative



CHECK YOUR FIXED DEPOSIT RECEIPTSCHECK YOUR FIXED DEPOSIT RECEIPTS

� Interest rates of bank FD¶s areincreased from 7% to 10%.

� Check whether any FD¶s invested

@ 7% which will mature after 1 to5 years

� Can I break my existing FD before

its maturity?� Will I lose interest or pay penalty?

� Simple process ± inform your

banker to close and renew the FD¶s

� Interest rates of bank FD¶s areincreased from 7% to 10%.

� Check whether any FD¶s invested

@ 7% which will mature after 1 to5 years

� Can I break my existing FD before

its maturity?� Will I lose interest or pay penalty?

� Simple process ± inform your

banker to close and renew the FD¶s



NOT FILED LAST YEAR¶S TAX

RETURN?


RETURN?

� There are several excuses for not havingfiled your tax return by the due date (31July of each year).

� You were travelling or

� you couldn¶t find the time from work.

� May be some documents were missing or

� perhaps you just forgot.

� Whatever be your reason, the taxdepartment is willing to

� give you a second chance.

� There are several excuses for not havingfiled your tax return by the due date (31July of each year).

� You were travelling or

� you couldn¶t find the time from work.

� May be some documents were missing or

� perhaps you just forgot.

� Whatever be your reason, the taxdepartment is willing to

� give you a second chance.




RETURN?


RETURN?

� If you have not filed your tax return for 2009-10,

� you can file it by 31 March 2011 without any penalty.

� If all your taxes are paid, there is nopenalty for filing late.

� However, if there is some tax due,

� you have to pay interest of 1% permonth of delay on the amount payable.

� The interest meter starts ticking rightafter the end of the financial year.

� If you have not filed your tax return for 2009-10,

� you can file it by 31 March 2011 without any penalty.

� If all your taxes are paid, there is nopenalty for filing late.

� However, if there is some tax due,

� you have to pay interest of 1% permonth of delay on the amount payable.

� The interest meter starts ticking rightafter the end of the financial year.




RETURN?


RETURN?

� You can also file tax returns of two yearsago (i.e, for 2008-09).

� This will be treated as a belated return.

� If some taxes remain unpaid, you willhave to pay them along with the penalinterest (1% per month of delay).

� In addition to this, there is a possibility of

� a penalty of Rs 5,000 for not filing thereturn by the due date.

� You can also file tax returns of two yearsago (i.e, for 2008-09).

� This will be treated as a belated return.

� If some taxes remain unpaid, you willhave to pay them along with the penalinterest (1% per month of delay).

� In addition to this, there is a possibility of

� a penalty of Rs 5,000 for not filing thereturn by the due date.




RETURN?


RETURN?

� Some taxpayers might be tempted tobrush the issue under the carpet and

� start with a clean slate this year.

� This can be a costly mistake because

� failure to pay tax by the due date istantamount to tax evasion.

� Some taxpayers might be tempted tobrush the issue under the carpet and

� start with a clean slate this year.

� This can be a costly mistake because

� failure to pay tax by the due date istantamount to tax evasion.




RETURN?


RETURN?

� The Income Tax Department picks upcases for scrutiny at random and

� if it is discovered that you have unpaidtaxes,

� a penalty of up to 300% of the amountcan be slapped on you.

� The minimum penalty is 100% of theoutstanding tax.

� The Income Tax Department picks upcases for scrutiny at random and

� if it is discovered that you have unpaidtaxes,

� a penalty of up to 300% of the amountcan be slapped on you.

� The minimum penalty is 100% of theoutstanding tax.



WHY THERE IS A BIG RUSH FOR

FILING IT RETURNS


FILING IT RETURNS

� If all taxes are paid and there is nopenalty for late filing,

� why is there such a big rush to file taxreturns by 31 July?

� This is because taxpayers who file belatedreturns

� forego some of their rights if they wake

up late.� For instance, you cannot carry forward

losses for adjusting against future gains if you file late.

� If all taxes are paid and there is nopenalty for late filing,

� why is there such a big rush to file taxreturns by 31 July?

� This is because taxpayers who file belatedreturns

� forego some of their rights if they wake

up late.� For instance, you cannot carry forward

losses for adjusting against future gains if you file late.




FILING IT RETURNS


FILING IT RETURNS

� This is especially useful if you have� incurred short-term capital losses from

investments in stocks.

� These can be carried forward and

� set off against short-term or long-termcapital gains made in subsequent years.

� Under current laws, such losses can be

carried forward for up to eight years.� Besides, there is no room for rectifying

mistakes

� This is especially useful if you have� incurred short-term capital losses from

investments in stocks.

� These can be carried forward and

� set off against short-term or long-termcapital gains made in subsequent years.

� Under current laws, such losses can be

carried forward for up to eight years.� Besides, there is no room for rectifying

mistakes



THANK YOUTHANK YOU

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