09-10-2007, 10:38 PM
Dear,
You have asked a specific question/advice for which a qualified professional must charge you a fee of not lesser than four figures amount.
If such a guy had have no other source of income and his only source was his salary then he must had never filed any return of income to tax department. Rather, his employer might have issued him (and filed by him) certificate in lieu of return (section 115 of ITO 2001).
From the financial year 2005-2006, even certificate in lieu of return has not remained manadatory, if the employer has filed the annual statement of deduction of tax. In all cases, all employers are required to furnish such statement under section 165 read with section 149 of ITO 2001.
Legally speaking, he was not obliged to file any income tax return being a salaried person. This has nothing to do with obtaining the NTN certificate. On NTN of a salaried person, it is always mentioned that he is a salaried person. Moreover, NTN never bears the name of the employer.
Since he was never required to file return, even after leaving his job, there will be no bar on him to file income tax return, if he has no other income. Further, as there is no taxable income, he is also not required to deposit any amount of tax.
The monthly, quarterly and annual statements of deduction of tax filed by his employer under section 165 read with section 149 of ITO 2001 will automatically notify the tax department the exclusion of his name from the dedution list.
He will not be required to give notice to tax authorities regarding any dis-continuance of his job.
However, in case of some assessee who was in business and obtained NTN and after sometime discontinues his business, is required to give such notice of dis-continuance of business to the commissioner of income tax under section 117 of ITO 2001.
However, in case of a tax payer described by you, he has to do nothing. However, it would be advisable to get letter of discontinuance of job from the employer for his record purpose. He should also ask for the certificate in lieu of return, if his employer provides him the same for submission to tax department. These documents can work for replying any query, if raised by tax department. Normally, no such query is received.
Ask him to do mauj maila !!!!!!!
Best regards,
Kamran.
You have asked a specific question/advice for which a qualified professional must charge you a fee of not lesser than four figures amount.
If such a guy had have no other source of income and his only source was his salary then he must had never filed any return of income to tax department. Rather, his employer might have issued him (and filed by him) certificate in lieu of return (section 115 of ITO 2001).
From the financial year 2005-2006, even certificate in lieu of return has not remained manadatory, if the employer has filed the annual statement of deduction of tax. In all cases, all employers are required to furnish such statement under section 165 read with section 149 of ITO 2001.
Legally speaking, he was not obliged to file any income tax return being a salaried person. This has nothing to do with obtaining the NTN certificate. On NTN of a salaried person, it is always mentioned that he is a salaried person. Moreover, NTN never bears the name of the employer.
Since he was never required to file return, even after leaving his job, there will be no bar on him to file income tax return, if he has no other income. Further, as there is no taxable income, he is also not required to deposit any amount of tax.
The monthly, quarterly and annual statements of deduction of tax filed by his employer under section 165 read with section 149 of ITO 2001 will automatically notify the tax department the exclusion of his name from the dedution list.
He will not be required to give notice to tax authorities regarding any dis-continuance of his job.
However, in case of some assessee who was in business and obtained NTN and after sometime discontinues his business, is required to give such notice of dis-continuance of business to the commissioner of income tax under section 117 of ITO 2001.
However, in case of a tax payer described by you, he has to do nothing. However, it would be advisable to get letter of discontinuance of job from the employer for his record purpose. He should also ask for the certificate in lieu of return, if his employer provides him the same for submission to tax department. These documents can work for replying any query, if raised by tax department. Normally, no such query is received.
Ask him to do mauj maila !!!!!!!
Best regards,
Kamran.
