1. Frequently Asked
Questions on
Income-tax>>
General
Shankar Bose
Inspector of Income-tax
MSTU, Puri

2. Frequently Asked Questions >> General
General
Q1. What is Assessment year and financial year?
Q2. How and where income tax has to be paid?
Q3. Who is liable to pay Income-tax?
What is Permanent Account Number (PAN)? Is it compulsory to obtain and quote
Q4.
PAN?
Tax has already been paid (by way of tax deducted at source or advance tax) on the
Q5. total income and there is also no interest payable or refund due. In such a case, is it
necessary to file a return of income?
Q6. Is it compulsory to file a return of income when there is loss?
Q7. What are the due dates for filing of returns of income/loss?
Q8. Can a return of income be filed after the due date?
Q9. Where should the return of income be filed?
Q10. Who is an Assessing Officer (A.O.)?
Are the incomes of all members of the family to be clubbed together for charging to
Q11.
Income-tax?
Q12. Is it compulsory to maintain books of accounts?
Q13. Is it compulsory to get the books audited?
If I have some information on evasion of tax , to whom should I give this
Q14.
information?

3. Q1. What is Assessment year and financial year?
Ans : Financial year starts from 1st April and ends on 31st March (wherein there is
income pertaining to the whole year or part of the year). Assessment year is the year
immediately following the financial year wherein the income of the F.Y. is assessed.
Q2. How and where income tax has to be paid?
Ans : Tax can be paid by way of cash, cheque or draft in any authorised national banks,
in the prescribed challan. The challan can be obtained from Income tax Offices.
Q3. Who is liable to pay Income-tax?
Ans : Every 'person' who has taxble income during the previous year shall be liable to
pay income tax. 'Person' is defined in the Income-tax Act to include
(i) an individual,
(ii) a Hindu undivided family,
(iii) a company,
(iv) a firm,
(v) an association of persons or a body of individuals, whether incorporated or not,
(vi) a local authority
(vii) every artificial juridical person, not falling within any of the preceding items.
Q4. What is Permanent Account Number (PAN)? Is it compulsory to obtain and
quote PAN?
Ans : Permanent Account Number is a ten character unique number allotted to a person
by the Income tax Department. It is compulsory for the following persons to apply for the
allotment of PAN if he has not already been allotted one :
(i) Every person who has taxable income during any previous year (financial year).
(ii) Every person carrying on any business or profession whose total sales, turnover or
gross receipts are or is likely to exceed Rs.5 lakhs in any previous year.
It is compulsory to quote PAN in all returns of income and every correspondence with
Income-tax authorities and in all challans used for the payment of tax. As per recent
notification issued by Director General of Foreign Trade and Central Excise Department,
PAN is required to be quoted by all holders of Import/Export Code (IEC) and all Central
Excise assessees. PAN is also to be quoted in all documents pertaining to the below
mentioned transactions :-
(a) Sale or purchase of any immovable property valued at Rs.5 lakhs or more;
(b) sale or purchase of a motor vehicle which requires registration by a Registering
Authority other than 2 wheelers;
(c) a time deposit exceeding Rs.50,000 with a banking company;
(d) a deposit exceeding Rs.50,000 in any account with Post Office Savings Bank;
(e) a contract of a value exceeding Rs.10 lakh for sale or purchase of securities;
(f) opening an account with a banking company;
(g) making an application for a telephone connection including a cellular telephone