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Jayesh (Self Employed)     16 February 2013

Never paid income tax or filed return... having problems now

Dear Tax Experts,

(1) I got a PAN card in 2006.

(2) I never filed income tax return as my savings were meagre and got about paltry sum of bank interest only. I was living as dependent till then.

(3) In January 2007 I got a job in Bhutan and my salary tax was deducted there and filed with Income Tax Authorities of Bhutan. My job there lasted till 2011.

(4) Since 2011 I am now back in India. Now I want to start a proprietorship business. The bank says that I can open a current account only if I have been assessed, and the income tax return should show the name of my business!

(5) How should I go about it now? Should I show to the Income Tax of India my earnings and tax paid in Bhutan? Or should I file as a first time assessee ? So far my income from India is still in meagre bank interests in my savings account.

Kindly guide please.



Learning

 4 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     16 February 2013

A personal or individual income tax is levied as a percentage of a person's wages and salaries, with some deductions permitted, along with the net income or loss from businesses and investments. It is typically collected on a pay-as-you-earn basis, with corrections at the end of the year for over payments and under payments. Income tax systems typically offer exemptions, deductions, or credits which lessen the total tax liability; these are frequently a method of rewarding income-use-patterns encouraged by the government (home ownership, supporting children, charitable contributions). Tax structures may allow losses from one type of income to be counted against another. For example, a loss from businesses and investments might offset wages before calculating the taxes due.

1 Like

Jayesh (Self Employed)     17 February 2013

Dear Mr Rama Chary, Thank you for your guidance.

 

However, I am confused about one thing :

I have paid taxes on my salary in Bhutan, so do I have to show this also in the income tax return in INdia?

If yes, can the taxes paid in Bhutan be deducted? Request your suggestions please. Thank you in advance.

.

R.V.RAO (retired)     23 February 2014

while an NRI  pays tax for his indian income, a resident indian is liable for tax on global income.

 perhaps  you are in  need  a proof for   tax  filing tax returns.

if this is your problem,pl. approach an auditor who will file your current year as well as  3 year returns. now.

some of them may be belated returns and liable  for some penalty.

 reflecting your  past earnings, and past taxes will be taken care of by him.based on the returns filed ,you may go for opening a  bank account.

Abhay Pratap (Taxation Software)     30 January 2021

There is not a problem but when u file your ITR In NILL it will help you for your financial decision.


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