somsom (job) (24 Points)
01 November 2008Hi I am salaried employeee which has not recived salary since two year.
I have recived a letter from IT department that Pay fine as You have not filled the returns for last two years.what nshould I do.should I file Nil (0)returns or should I tell them status with promise that Once I get salary of last two years I will file it.thanks
regareds
indu nagar
(ca)
(36 Points)
Replied 03 November 2008
Hello,
there is no need to worry, all you are required to do is to file your last two years returns disclosing NIL income. ( assuming that you do any income from any other source what so ever like business, FD interest etc etc.)
Under the income tax act a person is required to pay fine of Rs. 5000 if he fails to file his return of income as reqiured under the act and under the act only those persons are required to furnish return WHOSE INCOME EXCEEDS THE MAXIMUM AMOUNT CHARGEABLE TO TAX. since in your case your income is NIL for last two years therefore it does not exceed the maximum amount chargeable to tax, hence you are not required to file return hence question of impostion of any fine does not arise.
Conclusion:
1.u can either file your NIL income returns to satify the department. or
2. better way is that you can write to them that you have not earned any income during the last 2 years and enclsoe your bank statements as proof.
hope the above satisfies your query.
Late CA Sampat Jain
(Chartered Accountant)
(4772 Points)
Replied 03 November 2008
salary is taxable on accrual basis or recept basis which ever is earlier
CAclubindia
