What if you, as a taxpayer, are faced with unusual circumstances pertaining to your return? Money Today looks at five such odd situations and ways to deal with them.
What if you’re not in the country or are too ill to file?
In either case, any individual holding a valid power of attorney can file the return on your behalf. However, the proof of this power of attorney has to be submitted to the income-tax office.
What if you want to modify your return?
If you make a mistake or miss out on some deduction while filing your return, you can file a revised return till the end of the next assessment year (that is, till 31 March 2011). You can file any number of revised returns—as long as the income tax department has not finished the assessment process. In each revised return, you must mention the acknowledgement number and the date of filing the original return.
What if you want to file a delayed return?
If you have not filed your return for the previous assessment year, you can file a belated return before the end of the current assessment year. However, you cannot carry forward losses if you do not file by the due date. Besides, filing a late return does not mean that you won’t be slapped with a penalty. If the assessing officer is not convinced about the reason for the delay, he can levy a penalty of up to Rs 5,000. Also, if there are unpaid taxes, there is a penal interest of 1% on the outstanding amount for every month of delay.
What if a taxpayer dies before filing the return?
The legal heir can file the return on behalf of the deceased person. Where the return asks for the name of the assessee, the answer should be “late (name of deceased) through legal heir (name of person filing)”. Along with the return, the legal heir will also have to submit a copy of the death certificate and surrender the permanent account number (PAN) card of the deceased.
Incidentally, while the dead person is entitled to all the deductions and exemptions for the entire year, he is taxed only for the income earned till his death. After his expiry, the income from the assets of the dead person and the tax liability is transferred to the legal heir(s).
Suppose the assessee died in may 2009. His legal heir will have to file the return on behalf of the deceased for the financial year 2008-9 as also for 2009-10 (for income earned up to may 2009) in the next assessment year.
What if your Form 16 or TDS certificate has the wrong PAN?
Ask your employer or TDS provider to issue a revised certificate with the correct PAN number. If this can’t be done quickly, you can approach the assessing officer of your area. After due verification by the TDS issuer, you will be given credit for the tax paid.
