ITR Filling: What consequences arise if you failed to file the ITR this year? Click here to know....
Dr. Mamta Shukla, who teaches in a degree college in Lucknow, is appointed on contract in the Department of Psychology. They get fixed salary every month from the college side but due to not being a regular employee, their PF is not deducted. Due to the monthly salary of the college being less than 20 thousand rupees, their income does not come under the tax net, but their TDS is deducted on the amount received in lieu of copy checking or exam. So he continued to file his income tax return every year. Last financial year Dr. Mamta Shukla did not get any income from other sources, so she did not even file her return. But now they were worried that if they fail to fill the ITR, they will not get any notice from the department.
What do experts say?
After talking to tax and investment expert Balwant Jain about this, it came to know that if you file the return, then it should not be missed in any year. He told that if your income is outside the purview of tax, then there will be no loss directly, because the department sends notices to only those taxpayers whose income comes under the purview of tax. However, it may have other disadvantages. If you are applying for a home loan or passport, a mistake in filing ITR can cost you dearly.
Whether TDS is deducted
Balwant Jain said that if a teacher is posted on contract or on contract, then he is not considered an employee of the college. Consultant and the salary received by such employee comes under the purview of professional fee under the Income Tax rules. Even on this, there is a direct rule regarding TDS of Income Tax that if the professional fee of more than 75,000 rupees is being paid annually by the college, then it is mandatory to deduct TDS on it. Therefore, if the employee is doing TDS, then the income tax return must also be filed. Balwant Jain said that if the employee is not aware of the deduction of his TDS, then download Form AIS from the site of the Income Tax Department to get its details.
If you are in the purview of income tax then…
Now the question arises that what will happen if there is an employee whose income is more than Rs 2.50 lakh per annum in the tax net. Balwant Jain says that it may be difficult for such employees, if the Income Tax Department sends a notice, then they may also have to pay a fine. It would be better for such employees to file their ITR by paying a late fee of Rs 1,000. However, a rebate of Rs 12.5 thousand is available if the income is less than 5 lakhs, but being in the purview of income tax, it is necessary to file ITR.