INCOME TAX FILING-TAX FILING
What is Income tax?
There are two types of taxes in India – direct tax and indirect tax.
Direct tax is a tax that is calculated and paid directly on your Income e.g. tax on salary etc. Income tax is a direct tax.
Indirect tax is a tax that is indirectly charged to you on purchase of goods or use of service e.g. Buying a mobile phone or eating in a fast food joint. The seller of the mobile phone or the fast food service provider charges you tax and then deposits the same to the Government account. Most indirect taxes are now covered under Goods and Services Tax (GST).
Everyone who earns income above a certain amount is subject to income tax. Your income could be from salary, interest income from savings, income from mutual funds, sale of property or business or professional income. Income tax rates are pre-decided at the start of the year in the Union Budget (in the Parliament of India). The tax paid or deducted on these incomes is called the income tax.
Benefits of Filing Income Tax Return/Income Tax Filing on time
1. Easy Loan Approval
Filing the ITR will help individuals, when they have to apply fora vehicle loan (2-wheeler or 4-wheeler), House Loan etc. All major banks can ask for a copy of tax returns
2. Claim Tax Refund
If you have a refund due from the Income Tax Department, you will have to file an Income Tax Return to claim the refund.
3. Income & Address Proof
Income Tax Return can be used as a proof of your Income and Address.
4. Quick Visa Processing
Most embassies & consulates require you to furnish copies of your tax returns for the past couple of years at the time of the visa application.
5. Carry Forward Your Losses
If you file return within due date, you will be able to carry forward losses to subsequent years, which can be used to set off against income of subsequent years.
6. Avoid Penalty
If you are required to file your Tax returns but didn’t, then the tax officer deserves the right to impose a penalty of up to Rs.5,000.
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INCOME TAX FILE, INCOME TAX FILING, INCOME TAX, TAX RETURN PREPARATION, TAX FILE, IN VASAI,VIRAR, NALASOPARA,MUMBAI,THANE.
What is Income Tax
An income tax is a tax directly imposed on (assesse) taxpayers or individuals according to income or taxable income. Income tax is one of the main sources of government funds used to better serve the public. So in case you are also an income taxpayer and you encounter some kind of difficulties to calculate your income tax, we are here to help you. As we all know very well who is important to pay income tax and it is also a legal matter. With the help of the Income Tax Calculator as well as Income Tax consultants, you can simply calculate your net income tax obligation for the current Assessment Year. That means you would pay taxes on income earned during the last financial year (April 1 to March 31).
In simple words Income, Income tax is direct tax, a burden of taxes comes directly assessee, who pay the taxes. you can take hep of CAs and tax cosultants to get the exact and correct amount of taxes to pay read more
What is Form 16?
Form 16 is the certificate issued under section 203 of the Income Tax Act for taxes deducted at source (TDS) from income under the head of salary. It is issued for deducting taxes by the employer from an employee's salary and depositing it with the government. The certificate provides a detailed summary of the amount paid or credited to the employee and the TDS on it. This form is issued annually in accordance with the provisions of the Income Tax Act 1961. normally . employer shall issue the Form 16 certificate to the taxpayer after end of financial year for which it is issued . An employee can use Form 16 to obtain information to complete their income tax return (ITR) and it should be kept as supporting evidence for TDS
What is Income Tax Return ?
An income tax return (ITR) is a form used to submit information about your income and taxes to the Income Tax Department. The tax liability of a taxpayer is calculated based on their income. In the event that the return shows that an excess tax has been paid for one year, then the person will be eligible to receive a refund of income tax from the Income Tax Department. According to income tax laws, the return must be filed each year by a person or business that earns income during a financial year. Income can be in the form of salary, business earnings, income from home ownership, or earned through dividends, capital gains, interest, or other sources. Tax returns must be filed by an individual or a business before a specific date. If a taxpayer does not meet the deadline, they must pay a penalty.
When is it mandatory to submit an income tax return ?
According to the Income tax laws in India, it is mandatory to file your income tax returns if your income exceeds the basic exemption limit. The income tax rate is predetermined for taxpayers. A delay in filing returns will not only attract late filing fees, but will also hamper your chances of obtaining a loan or travel visa. It is mandatory to sumbit income tax return for a firm and company However, individuals, HUF, AOP, BOI are required to file an income tax return if the income exceeds the exemption limit of Rs 2.5 lakhs. This limit is different for super senior citizens and senior citizens.
Can I file an income tax return even if my income is below the taxable limits?
Yes, you can voluntarily file your income tax return even if your income is less than the basic exemption limit
What documents to be attached along the income ?
It is not necessary to attach any document with the income tax return. However, documents should be kept to present to any competent authority when necessary in the future.
Do I have to disclose all my income on the return even if it is exempt?
Yes. Income from all sources must be disclosed, including exempt income. The same can be shown in Annex EI.
What income am I taxed for?
Your income is not equal to your salary. You can earn income from various sources other than your salary income. Your total income, according to the Income Tax Department, could come from home ownership, gains or losses from the sale of stocks, or from interest in a savings account or fixed deposits. All of these numbers add up to become your gross income.
Salary income: All money you receive while doing your job as a result of an employment contract.
Capital Gains Income: Income earned from the sale of a capital asset, for example, mutual funds or real estate.
Income from home ownership: Income from home ownership you own; the property can be self-occupied or rented.
Income from other sources: This heading includes the income accrued by Fixed Deposits and Savings Accounts or any income which not covered in any other head.
Income from business and profession: Income / losses that arise as a result of the doing of a business or profession. The income of the self-employed is included in this heading.
What is shown in the TDS on my payment receipt?
Your employer deducts the taxes from your wages or salary and pays them to the I-T Department on your behalf. It's called TDS. The TDS is deducted from taxes at source. Your employer cuts a portion of your salary each month and pays it to the Income Tax Department on your behalf. Based on your total salary for the entire year and your investments in tax savings products, your employer determines how much TDS to cut from your salary each month.
For a salaried employee, TDS constitutes a significant part of an employee's income tax payment. Your employer will provide you with a TDS certificate called Form 16, usually around June or July, that will show you the amount of tax that was deducted each quarter.
What is Form 26AS?
Form 26AS is a summary of the taxes deducted on your behalf and the taxes paid by you. you can see or download 26as on the Income Tax Department website. It shows the details of the taxes deducted on your behalf by the deductors, the details of the taxes deposited by the taxpayers, and the tax refund received in the financial year. This form can be accessed from the I-T Department website.
What is income from home ownership and how is it taxed?
Income from home ownership is possible at these experts: Rental income from a rented property Annual value of a property that is "deemed" rented for income tax purposes (when you own more than one home property) Annual value of self-occupying property, which is zero Under section 24 of the Income Tax Act, you are allowed to make a certain deduction from the annual net value of your home property. The net annual value is the gross annual value minus the municipal taxes paid. In the event that the property is rented, the rent received is its Gross Annual Value, while in the case of a property considered rented, a reasonable rent from a similar location is its Gross Annual Value. For a self-occupied home ownership, the annual gross value is zero.
What is the basic salary?
This is a fixed component on your paycheck and forms the basis for other portions of your salary and hence the name. Usually it is a large part of your total salary. The HRA is also defined as a percentage of this base salary. Your FP is deducted at 12% of your base salary. Note: To understand the different components of your proof of payment, read
What is HRA?
House Rental Subsidy - Salaried people living in a rented house / apartment can claim the House Rental Subsidy or HRA to reduce taxes. This can be partially or totally exempt from tax. this HRA allowance given by employer is for expenses related to the rented accommodation. Note: If you receive an HRA and do not live off the rent, your HRA will be fully taxable. To understand the other components of your proof of payment,
Can I file a revised return to correct an error in the original return filed?
Yes, the statement can be reviewed within a one-year period from the end of the relevant assessment year or before the assessment is completed, whichever comes first. Filing the revised return is not part of the plan. The plan purchaser must provide complete and accurate details to avoid the need to rectify the originally filed return.
Can I filed return after the due date?
Yes, a late return can be filed before the end of the assessment year or before the completion of the assessment year, whichever comes first. For example, in the case of income earned during the 2019-20 financial year, the late return can be filed until March 31, 2021.
Should I keep a copy of the declaration filed as evidence and for how long?
Yes, according to the Income Tax Law, legal proceedings can be started up to 4 to 6 years (depending on the case to Expert'se) before the current financial year. However, in certain Experts the process can begin even after 6 years, so it is advisable to keep the copy of the return for at least 6 years or keep it as long as possible.
Does the plan cover the preparation of financial and audit statements?
The audit and the preparation of financial statements are not part of the plan.
Is the revised statement covered by the plan?
Filing revised returns due to incorrect information provided by the appraiser during the original filing of the return will not be part of the plan.
What is the cancellation / refund policy?
Do I need to attach details of deducted TDS, proof of investments, etc.?
ITR return forms are forms without attachments and therefore you do not need to attach any documents (such as proof of investment, TDS certificates, etc.) along with the ITR (whether it is submitted manually or electronics). However, these documents must be kept and presented to the tax authorities when requested in situations such as evaluation, consultation, etc.
What is the deadline for filing returns for individuals?
Individuals must file their return before September 30 of the next year, that is, for income earned in the 2015-16 financial year, the return must be filed before September 30, 2016.
How to Register for Filing Income Tax Return
To use the income tax filing service you must first register. we provide you some instructions and guidelines for registering for electronic filing income tax return. To register for the electronic filing income tax filing service, you must have a PAN card without a PAN card you cannot register for these beneficial services. Make sure that when you register you have all the essential details such as PAN card details, contact details and others. After the registration procedure, you can easily take advantage of the online tax filing service and much more.
Step by Step Process for Registration of Taxpayer on e-Filing website?
To take advantage of all income tax returns related to online facilities, you must register to electronically complete the income tax return. Otherwise, you cannot take advantage of this beneficial installation. Here is a simple guidlines to help you sign up to complete your electronic income tax return: Visit the electronic filing website Income Tax Portal Then click on the "Register yourself" link and select User Type (Individual / HUF / Other than Individual / HUF and other) by clicking on the radio button. Click on the Continue button. After that User, the Registration page will blink directly and begin to fill in mandatory details such as PAN, Last Name, First Name, Middle Name and Date of Birth. Check all the details that field to click the "Continue" button. Then, in the next step, start filling in the registration form, such as entering User ID, Password, Confirm password, Primary Secret Answer and Secondary Secret Answer, all this information is required to be a field. In the Personal Deals section, your data will already be populated by basic details previously entered in the Contact Details section, start entering your contact details, be sure to enter the correct contact details because your registration regarding the information will be sent to these contact numbers. Enter the landline phone number, mobile phone number, alternative mobile phone number, email ID, alternative email ID, and fax number. Then enter the details of your current Address, for example: Plane / Door / Building, Highway / Street, Area / Town, City / City / District State, PIN Code and the last alternative select your country.
lastly enter the Captcha and Finally click the Submit button.
How to file an ITR online if you are a salaried employee?
If your main source of income is salary, you must file an income tax return or Form ITR-1, also known as SAHAJ, for tax year 2020-21 for income earned during tax year 2019-20.
How to file income tax return form ITR-1?
Go to the income tax department's ITR filing website and log in with your user ID and password.
Go to “E-File” or file income tax return and select the ITR form and the assessment year.
Fill in the income details from Form 16 such as details for wages, tax payments, deductions, etc.
Check all the details and click on sumbit.
You must verify it, since sumbit the ITR is not enough. Otherwise, your return will not be processed. You can do the verification online or offline. There are online options, such as electronic verification of done through net banking and generation of a one-time password through Aadhaar.
Why Should file IT returns
The benefits of filing IT returns are:
Loan:- Bank loans, such as education loans, vehicle loans, and personal loans, can be easily used as they require the IT returns of the past three years.
Visa:- As immigration centers examine many documents and IT return evidence is a mandatory document for visa applicants.
Avoid fines:- There would be a considerable fee for not filing income tax returns, and therefore it is always best to file it to avoid legal repercussions.
Who must file the tax return
As per rules of Income Tax Department, the persons required to file IT returns annually are:
1. Every company, whether private limited, LLP or partnership, irrespective of income or loss, must file Income tax returns.
2. Individuals Receiving Property Income Under Charitable Trusts, Religious Trusts, or Voluntary Contribution Income.
3. Individuals or companies that want to claim tax refunds.
4. Salaried persons whose gross earnings before deductions under section 80C to 80U that exceed the exemption limit.
5. People who enjoy income from mutual funds, bonds, stocks, fixed deposits, interest income, house properties, etc.
6. All persons with foreign income, foreign assets, NRIs and technology professionals on site delegation.
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