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Duty to file return is mandatory
My nephew who works in an international bank is now in the U.S. Usually he does not entrust the job of submitting his IT return to anyone. However he has paid all his income-tax, being a salaried person. Is it enough to file his IT return on his coming back to India? In his absence nobody can file the returns, because all his investments and other relevant details are only with him.
Sec. 139(1) requires every individual to file an annual return, where his income exceeds the exemption limit. Where a person has taxable income and does not file return within the prescribed time, being July 31 for persons with only income from investments, he may be liable for penalty under Sec. 271F for Rs. 5,000. There may also be liability for interest on short payment of advance tax, where such short payment of tax exceeds Rs. 5,000 with further interest for delay in filing return. The inference that the non-resident staying abroad need not file a return or such return can await his return to India is not correct.
Sec. 140 provides that a non-resident for that matter any individual who is absent from India, can authorise any other parson to file return on his behalf, so that his absence is no excuse, if he has taxable income.
If the non-resident nephew of the reader shares the same misgivings as the reader, it is better that the reader hastens to correct his wrong impression forthwith.
S. RAJARATNAM
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