Income Tax Return (ITR) may be a form which an individual is meant to undergo the tax Department of India. It contains information about the person’s income and therefore the taxes to be paid thereon during the year. Information filed in ITR should pertain to a specific fiscal year , i.e. starting on 1st April and ending on 31st March of subsequent year.
Income are often of varied forms like :
- Income from salary
- Profits and gains from business and profession
- Income from house property
- Income from capital gains
- Income from other sources like dividend, interest on deposits, royalty income, winning on lottery, etc.
Benefits of Filing tax Returns on Time!
1. Easy authorization
Filing the ITR will help individuals, once they need to apply fora vehicle loan (2-wheeler or 4-wheeler), House Loan etc. All major banks can invite a replica of tax returns
2. Claim Tax Refund
If you’ve got a refund due from the tax Department, you’ll need to file an tax Return to say the refund.
3. Income & Address Proof
Income Tax Return are often used as a symbol of your Income and Address.
4. Quick Visa Processing
Most embassies & consulates require you to furnish copies of your tax returns for the past few years at the time of the visa application.
5. carry over Your Losses
If you file return within maturity , you’ll be ready to carry over losses to subsequent years, which may be wont to depart against income of subsequent years.
6. Avoid Penalty
If you’re required to file your Tax returns but didn’t, then the tax officer deserves the proper to impose a penalty of up to Rs.5,000.
Procedure for change of object clause
Frequently Asked Questions
Answer: Any individual or artificial body or group of people that earn quite the essential exemption limit are expected to pay tax.
Answer: There are two different tax regimes which are currently utilized in India to file tax returns. However, the tax-free income is that the same on the idea of both the old regime and therefore the new regime. In both cases, annual income of up to Rs.2.5 lakh is tax free.
Answer: All individuals and assessees who don’t require their accounts to be audited will need to file their tax returns by July 31. However, companies, individuals and dealing partners of firms whose accounts must be audited are required to file their tax returns by September 30. Assessees who are required to submit a report under Section 92E of the tax Act must file their returns by November 30.
Answer: Income tax may be a tax . That is, tax may be a tax which is paid by the liable entity on to the entity which imposes the tax. within the case of tax , the imposing party is that the government while the liable party is that the one who is drawing an income against which the liabilities arises.
Answer: Yes, tax is charged even on income which is earned in cash. However, if the cash credit is unexplained, the tax is charged at a flat rate of 60% and no other tax benefits in terms of exemption are applicable. On top of that, there’s a surcharge of 25% along side which a penalty of 6% is charged.
Answer: Income tax is collected by the govt for a number of reasons which include paying off the salaries of the state and central government employees and for meeting infrastructural expenses. The tax collected by the govt acts as a source of income on the idea of which the event of the state is taken care of.
Answer: There are various instruments during which you’ll invest to save lots of tax. a number of the foremost common options available to you include PPF, National Savings Certificate, National Pension System, ELSS schemes, etc.