Accesses fulfilling the above conditions, have the option , of using even the existing Form No. 3 in place of Form No. 2A. They can also file their returns in 'Salary' form.

While computing income from the above mentioned different heads, the procedure is :-
First, the taxable income from each source is to be computed under each head of income by allowing deductions, and then they are aggregated. For example, in the case of an assesses deriving income from salary, house property, and Interest income from Fixed Deposit in a Bank, firstly, the taxable income under the head 'salaries', then 'Income from House Property, and lastly the taxable income under the head 'Income from other sources' for Bank interest etc. will be computed.
Thereafter, all the three incomes under the three heads would be aggregated. From this amount, certain eligible deductions would then be deducted to arrive at the net taxable income on which tax is chargeable.

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How to pay the Tax under the Income Tax Act ?
The employer or his representative making payment to an assesses earning income from 'salary' is under obligation to deduct, certain amount of 'tax, from such payment(s) made during the financial year. Such deduction from the payment is called 'Tax Deducted at Source' i.e. TDS. The person making this TDS is obliged to pay such tax to Central Government within the prescribed time limits.

This payment of TDS to the Central Government is treated as payment of tax on behalf of the assesses.

The assesses may furnish to his employer particulars of his income under any head other than "salary", and of any tax deducted at source thereon in the prescribed Form No. 12C. The employer shall take such other income and tax, if any, deducted at source from such income, into account for the purpose of computing the TDS from his salary income. However, this aggregation is not permitted in case such income under any other head (except loss from house-property) is a loss. This loss (except loss from house-property) is not permissible to be adjusted by the person paying salary but can be claimed as deduction at the time of filing of return and a refund sought.

In order to remove any difficulty in obtaining such refund, the assesses may make an application in Form No. 13 to his Assessing Officer, and, if the Assessing Officer is satisfied that the total income of the tax payer justifies a lower rate of deduction or no deduction at all he may then issue an appropriate certificate to that effect which should be taken into account by the person making the payment of salary while deducting tax at Source.

In case the assessesdoes not wish to furnish particulars of his income under other heads to his employer then he has to estimate his total taxable income under the different heads of income during the previous year, and pay tax thereon during the financial year itself, (after excluding the tax deductible at source), by the due dates specified under the Income-tax Act. These payments are called "Advance Tax Payments".

The due dates and the percentage of installment of Advance Tax for individuals are mentioned herein below :-

Due date of Installments		Amount Payable
1st	On or before 15th September	Amount not less than 30% of such advance tax
2nd	On or before 15th December	Amount not less than 60% of such advance tax
3rd	On or before 15th March	Entire balance amount of such advance tax.

However, the liability for payment of advance tax arises only where the amount of such tax payable by the assesses during that year is Rs.5,000 or more.

Also, any amount paid by way of Advance Tax on or before the 31st March of that year, is treated as Advance Tax Paid during that Financial Year.

After the return is prepared, and the net taxable income finally determined, it may so happen that, after taking into account the amount of TDS and Advance Tax, if any, already deducted/paid still some tax or interest (payable for delay in furnishing the return or delay in payment of advance tax) remains to be paid.

This amount should be paid as 'self-assessment tax 1' before furnishing the r eturn.

It is, therefore, important to note that before furnishing the return, the assessee has to pay the entire .tax and interest, if payable, and the proof of such payment of taxes has to be attached with the return.

It is also to be noted that 'tax' includes applicable Interest' chargeable under various provisions of the LTV, Act, 1961.

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What are the rates of income tax?
In the case of an individual, the rates of Income tax for A.Y. 2001-2002 and A.Y. 2002-2003 are given herein below

Income Slab	A.Y. 2001-02	A.Y. 2002-03
Upto Rs. 50,000	Nil	Nil
Rs.50,001 to Rs.60,000	10 %	10 %
Rs.60,001 to Rs. 1,50,000	20 %	20 %
Above Rs. 1,50,000	30 %	30 %

Persons in this slab would be required to pay twelve percent surcharge on the total income-tax payable after rebate under Chapter VIII-A. Persons in this slab would be required to pay two percent surcharge on the total income-tax payable after rebate under Chapter VIII-A. Persons in this slab would be required to pay seventeen percent surcharge on the total income-tax payable after rebate under Chapter VIII-A. Persons in this slab would be required to pay two percent surcharge on the total income-tax payable after rebate under Chapter VIII-A.

No surcharge would be payable by persons having incomes of Rs.60,000 or below. Marginal relief is provided to ensure that the additional amount of income-tax payable, including surcharge, on the excess of income over Rs.60,000 is limited to the amount by which the income is more than Rs.60,000 .

However, the amount of Income-tax computed in accordance with the above table would be first reduced by the amount of rebate of Income Tax calculated under Chapter VIII-A of the Income Tax Act (for example: rebate on payment of LIC, Provident Fund etc.). Thereafter, Union surcharge will be calculated and charged.

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How is the penal interest calculated?
Where the assessee has defaulted in timely furnishing of his return of income or where he has to pay advance tax, then penal interest is chargeable for Non/Late filing of return or Non-payment/short payment/deferment in payment of such advance tax.

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How is interest calculated for late or non-furnishing of return ?

INTEREST U/S 234-A FOR LATE OR NON-FURNISHING OF INCOME TAX RETURN

For defaults in furnishing 'Return of income': Simple interest @ 1.25% for every month or part of a month from the due date of filing of the return to the date of furnishing of the return. The interest is calculated on the amount of the tax on the total assessed income as determined under sub­section (1) of section 143 or on regular assessment u/s 143(3) as reduced by the Advance Tax, if any, paid and any tax deducted or collected at source.

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If the tax payer fails to pay 90% tax plus applicable interest(s), then how is interest for short payment of suuch advance-tax calculated?

INTEREST U/S. 234-B FOR SHORT PAYMENT OF ADVANCE TAX
Shortfall in payment of Advance tax of more than 10%	Simple interest @ 1.25% for month or part there of is chargeable w. e. f. 1st April of the Assessment Year to the date of determination of income u/s. 143(1) or regular assessment u/s 143(3) on the assessed tax.
	"Assessed tax" means the tax on the total income determined under sub­section (1) of section 143 or on regular assessment u/s 143(3), a reduced by the amount of tax deducted or collected at source.

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How is interest for deferment of advance-tax calculated ?

INTEREST U/S 234-C FOR DEFERMENT OF ADVANCE TAX
1. If no advance tax is paid or the advance tax paid in 1 st instalment on or before 15 th September is less than 30% of the tax payable on threturned income as reduced by taxes deducted at source	Simple interest @ 1.25%p,m. is chargeable on the amount of shortfall for a period of 3 months
2. If no advance tax is paid or if the advance tax paid in 2nd instalment on or before 15th December is less than 60% inclusive of 1 st instalment of the tax payable on the returned income as reduced by taxes deduced at source	Simple interest @1.25% p.m. is chargeable on The amount of shortfall For a period of 3 months
3. If the advance tax paid on the current income on or before the 15 th day of March is less than the tax due on the returned income	Simple interest @ 1.25% on the amount of the short fall from The tax due on the returned income.

However, no interest is leviable if the short-fall in payment of advance-tax is on account of under estimation of the amount of capital gains or any income from winnings from lotteries, crossword puzzles, races, and other games including an entertainment program on television or electronic mode, in which peole compete to win prizes etc., and the assesses has paid the tax on such income as part of the remaining instalment of advance tax which are due or if no instalment is due, by 31st March, of the Financial Year.

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What are the important points to remember while filing the income tax return?
Income Tax Return is a legal document and it should be filled in by the assessee with due care and caution. There should be no corrections or overwriting and it should be properly signed and verified by the person who is authorised to do so under the provisions of I.T. Act, The following important points may be taken care of while filling up the Income Tax Return:-

Name & Address :- The name and address must be written in block letters and while filling up the same in the cages meant for the same, one cage may be left blank after each word. As the Income-tax Returns are to be generally filed on the basis of territorial jurisdiction, any mistake in the address may dislocate the return which will cause undue delay in finalisation of the assessment. Assessment Year: The Assessment Year is to be correctly filled in as the Financial Year succeeding the year for which the income is accounted. Revised Return : Proper particulars of the original return are to be mentioned in case the I.T. return is a revised return. P.A.N/GIR Number : The assessee's PAN/GIR Number should be correctly filled so that the return reaches the concerned Assessing Officer Status : Correct code numbers of the assessee's status i.e. individual, H.U.F., Firm, Company, B.O.I., A.O.P. etc. and residential status i.e. Resident in x India or Not Ordinarily Resident in India ( complete details of stay in India ought to be attached) must be filled in as per the Notes attached to the Income Tax Return. Evidence(s) for Pre-paid Taxes : The original T.D.S. certificates and challans for payments of advance tax and self assessment tax should be attached to the I.T. return and proper details are to be furnished under the head Statement of Taxes. These documents may be listed under the head: List of Documents/Statements attached. Document(s)/Annexure(s) Attached : The other document(s)/Annexure(s) may be properly listed under the head List of Document(s)/Statement(s) attached and the total number of documents must be properly filled in the relevant column of the Acknowledgement Form. Income Claimed Exempt : The particulars of income which is not included under any head of income and claimed as exempt from tax must be mentioned in the relevant part of the I.T. Return under the head 'Income Claimed Exempt', Verification : The verification must be signed by the authorised person and other particulars viz. Name, Father's Name (not husband's name), Assessment Year, Capacity, Place and Date should be correctly filled therein. Please note that any person making a false statement is liable to be prosecuted under Section 277 of the Income-Tax Act.

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Why is Father's name even in the case of married lady assessees to be given in the verification portion of the return?
This is required for proper identification, as in the PAN Forms, the requirement is to fill up the father's name, to ensure a PAN for life.

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Who can verify and sign the income-tax return?
The individual filing his Income Tax return has to sign the return. In case the individual is mentally incapable, then the return may be signed by his Guardian or by any other person competent to sign on his behalf.

In case the individual is absent from India or because of any other reason he is not able to sign and verify his return of income, then any person duly empowered by him through valid Power of Attorney may sign on his behalf. In such case, a certified copy of the Power of Attorney must accompany the return.

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If the return is not signed by the proper person or if it is unsigned, what is the legal implication?\
It is then an invalid return.

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Where to file the income tax return?
An existing assessee must file his Income Tax return with the Assessing Officer who had previously assessed him or with the Assessing Officer where his case stands transferred.

Normally, there are separate wards for the assessees earning income from salary. These wards/circles, have been assigned separate jurisdiction for separate classes of assessees, like assessees deriving salary income from Government or from- private employers. Similarly, the assessees deriving Income less than Rs.10 lacs may be assessed in a 'Ward' whereas the assessees deriving income above Rs.10 lacs may be assessed in a 'Circle 1 .

A new assessee should file his Income-tax Return with the Assessing Officer having territorial jurisdiction over the area where he resides, or the Assessing Officer having special jurisdiction over the specific assessee or class of assessees or class of income.

In case of any doubt, the I.T.O. (Public Relations) or the I.T.O. (Headquarters) may be contacted to know the jurisdiction for filing the Income-Tax Return.

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Where to deliver the Income-Tax return?
The Income-Tax Return may be delivered either at the Dak Receipt Counter in the Range/Ward/Circle having jurisdiction over the assessee or the return may be sent through registered post.

When the return is delivered at the Dak Counter, the official manning the counter returns one copy of the acknowledgement form attached with the return after signing, stamping, and numbering it. The date of filing the return is also prominently displayed on the acknowledgement handed over to the assessee.