If your total income for the year ended on March 31, 2007 exceeds the tax exemption limit of Rs 1,00,000, you need to file return of income.
Filing of return of income enables you to access financial benefits such as obtaining of loan etc. By not filing return despite having taxable income, you will attract penal and prosecution provisions under the Income-Tax Act.
For individuals and HUFs, the new forms ITR – 1 to ITR – 4 are notified for AY 2007-08.
The CBDT has extended the due date up to 29-02-2008 for persons who have filed return for AY 2007-08 on or after May 14, 2007 in a form other than the form notified for the said year. Such persons will not be liable to interest or penalty if they re-file the return on or before the said extended date. Hence, re-file the return in the form notified for AY 2007-08 before 29/02/2008.
The above forms are annexure less. Hence, no documents need to be attached. It is optional for individual and HUFs to file return electronically. Hence, you can file the return in physical form.
If you are claiming set-off of interest paid on home loan against your income or have exempt income by way of dividend etc., you cannot file the return in ITR 1. In such cases, the return will have to be filed in ITR 2.
Read the form carefully before filing return. It is advisable to fill in the schedules before filling information relating to computation of total income, to avoid errors. You must maintain documents in support of income at least for a period of six years since the notice for re-assessment of income can be initiated within that period.
In case, you have not filed the return, you should file it immediately by paying the tax amount including the penal rate due. The failure to file return attracts penalty.