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2008-07-31

Tax returns: Some don't need to panic

If you have deposited all your tax, or your due taxes have been deducted by your employer or you are not claiming a major amount as refund, you need not rush to the income tax office. In fact, if you have no losses to be carried forward too, you need not worry about meeting the July 31 deadline.


You have the option to file your returns by March 31, 2009, without any penalty. Many aren’t aware of this. Software engineer Sidharth Masaldaan’s company had already deducted his taxes, but he didn’t know he could file his returns by March 31, 2009.


"It was only a day before I filed my returns that I saw a blog posting that talks about this. I feel our companies should create more awareness about filing returns," says Masaldaan. "They just distribute our Form 16 and sometimes, hold a session with a financial consultant. But one can’t always make the time."


However, if the return is filed by July 31, 2008, then the assessee can revise the return by March 31, 2010. "Such revision is not possible if you file after July 31," says Sanjay Dhariwal, director of tax firm DNS Consulting.


Divya Chatterjee (26), a media professional, had to cough up nearly Rs 40,000 besides the normal tax deduction from her salary.


"I joined a new company mid year and the new company did not take into account my income for the first six months. Companies should realise that when employees join them in the middle of the year, they have to show income from other sources in the Form 16," says Chatterjee.

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Disclaimer

Ours is an advisory role. The final decision and consequences based on our Information is solely yours. Moreover, in keeping with regulatory guidelines, we do not guarantee any returns on investments. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.