PERSON
A Person, corporations or other legal entities, whose earned Income in India, exceeds a prescribed limit has to pay tax
ASSESSMENT YEAR AND PREVIOUS YEAR
Previous Year is the Financial Year ending on 31st March every year. Assessment Year is the period of 12 Months commencing on the 1st day of April immediately after the Previous Year. For eg. For Previous Year/Financial year ending 31.03.2012, the Assessment Year is 2011-12 (01.04.2011-31.03.2012).
TAX PENALTY
"If the Assessing Officer or the Commissioner (Appeals) or the Commissioner in the course of any proceedings under this Act, is satisfied that any person-
(b) has failed to comply with a notice under sub-section (1) of section 142 or sub-section (2) of section 143 or fails to comply with a direction issued under sub-section (2A) of section 142, or
(c) has concealed the particulars of his income or furnished inaccurate particulars of such income, he may direct that such person shall pay by way of penalty,-
(ii) in the cases referred to in clause (b), in addition to any tax payable by him, a sum of ten thousand rupees for each such failure;
(iii) in the cases referred to in clause (c), in addition to any tax payable by him, a sum which shall not be less than, but which shall not exceed three times, the amount of tax sought to be evaded by reason of the concealment of particulars of his income or the furnishing of inaccurate particulars of such income"
FILING OF RETURN
Filing of Income Tax Return is compulsory if the taxable income exceeds the basic exemption limit even if the tax payable is nil or refundable. As per the Sec 139 of Income Tax Act
Every person,-
(a) Being a company; or
(b) being a person other than a company,
if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed
TAX LIABILITY
For the Financial Year 2011-12, following persons are required to file their return of Income Tax :
a. Individuals having taxable income exceeding Rs.1,80,000 per annum.
b. Women having taxable income exceeding Rs.1,90,000 per annum.
c. Senior Citizens having taxable income exceeding Rs.2,50,000 per annum.
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