Mr A is a salaried employee and have only Income under the head Salaries. For the Fin. yr. 2007-08 (Asstt. Yr. 2008-09) Mr A has not filed Income Tax Return (ITR- 1). The company hasd educted TDS for Rs 4,000/-. But the actual Tax liability comes to Rs. 1500/-.
Now He wansts to file Income tax return for Fin Yr 2007-08 and Fin 2008-09. This will be his first return and he has never filed return before.
Now my query is: Whether it is advisable that Mr A should file retuen for Fin Yr 2007-08< Whether penalty will be imposed? If yes, whether penalty has be paid before filing of return or file the return for FY 07-08 without penalty? If filed without penalty, whether dept. can demand penalty later on?
OR, he should ignore the return for FY 07-08 and file his return for FY 08-09 as first return?
regards
Sujit
CAclubindia
