11. Where do I file my return?
The filing process has been centralised, so you can file your return anywhere in the country, at IT offices and even post offices. If a person has relocated, he just needs to intimate the change of address and file his return at the new location. Filing can also be done through the Internet. The help of authorised intermediaries can also be taken.
12. TDS is nil on my income. Do I have to file return?
You may skip filing return if your taxable income was below the exempted limit. However, if your gross total income exceeds the basic exemption limit, then you have to file a tax return even if no tax was deducted at source.
13. I do not have enough money to pay off my tax dues. What is the best way out? Should I sell off some of my equity investments?
A tax amount may be due to the government after you factor in the income from various sources like salary and capital gains. To settle this due, you may seek a loan from friends or relatives or raise a personal loan from a bank. If that does not work out, you may sell some of your low-yielding shares or mutual funds.
If that does not suffice, you can use your credit card to raise funds. Arrange for the funds in the quickest possible time and try to pay off any debt you run while raising the funds as soon as possible.
14. I bought shares worth Rs 1.25 lakh last year. Do I have to disclose that and other transactions?
Certain disclosures are mandatory while filing an income tax return. Among these are investments above a specified amount in bank deposits, mutual funds, shares and property in the financial year for which the return is being filed, 2007-08 in this case. The cut-off amount of investment from where disclosure should be made is: Rs 100,000 or more for shares, Rs 200,000 for credit card payments, up to Rs 10 lakh (Rs 1 million) for deposits in one bank during the year, Rs 200,000 for mutual funds, Rs 500,000 or more for bonds or debentures issued by a company, Rs 5 lakh or more for RBI bonds and Rs 30 lakh (Rs 3 million) or more for the purchase or from the sale of immovable property.
15. My wife earns Rs 10,000 per month from part-time coaching classes at an institute. Is she required to declare her income and file tax return?
For FY 2007-08, the basic exemption limit for not filing return for females is Rs 145,000 per annum. Your wife is earning Rs 120,000 per annum, which is below the taxable limit.
Therefore, it is not mandatory for her to file her income tax return at this stage. The exemption limit has been increased to Rs 180,000 per year from FY 2008-09. Filing of return will be required once her income crosses this limit. Also, she will need a PAN card to file returns then.
Can I file my returns without a PAN card? Read on....
Image: Taxpayers file their income tax returns | Photograph: Manpreet Romana/AFP/Getty Images
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