<b>What is Tax in India?</b>

It is fee charged by a government on a product, income, or activity. Constitutionally the said money is to be used for the development and administration of public at large.

<b>What are the Types of taxes in India?</b>

types of taxes

<b>What is the difference between Direct and Indirect taxes?</b>

Direct tax is paid to government directly by the person whereas burden of Indirect tax is shifted from one tax payer to another, i.e. Income Tax is paid by person directly to government. However, taxes like VAT, Service Tax are levied via sale of goods or services.

<b>What is Income Tax?</b>

Income Tax is a tax levied directly on the income of a person. A person may be an individual, a partnership firm, a company, body of individual or any association of person.

<b>What is Income in terms of Income Tax Act, 1961?</b>

Income is inflow of money. Income Tax Act, 1961 gives an inclusive definition of income to include the following among others profit, gains, dividend income, salary etc. Thus any amount received which may not be truly salary or profit may also be called as Income if it derives a colour of profit or any other form of income.

<b>What are the different types of Income head?</b>

To facilitate the mechanism of collecting taxes from relevant assesses, the Income Tax Act has bifurcated Income into following five heads (broadly):

• Income from salary
• Income from House property
• Income from Business & Profession
• Income from Capital gain
• Income from other sources

There is a mechanism to compute income under each of these heads, including mechanisms as to what shall be exempt and what shall be allowed as deduction in each of these heads.

<b>What is Income Tax return?</b>

It is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income is communicated to the Income tax department after the end of the financial year. Different forms are prescribed for filing of returns for different Status and Nature of income.

<b>Who are supposed to pay tax?</b>

As per Charging sec 4 of Income Tax Act, 1961
Income tax is payable by the person on his Income which is earned during the previous year at the applicable on relevant assessment year.

<b>What is Tax rate?</b>

Annexed herewith the tax Rate Chart.

Particulars Individual/Hindu Undivided family Partnership firm Company
write value write value Indian Company
Basic Tax As per slab rate 30% 30% 40%
Sucharge 10%
(If Income is more than 1crs.)
10%
(If Income is more than 1crs.)
5%
(If Income is more than 1crs.)
10%
(If Income is more than 10crs.)
2%
(If Income is more than 1crs.)
5%
(If Income is more than 10crs.)
Education cess 3% 3% 3% 3%

Individual & Hindu undivided family has to pay the tax as per tax slab rate
Applicable for Individual Resident whose age is less than 60 yr

Income Tax Rate
If the Income less than Rs. 2,00,000 NIL
If the Income more than Rs.2,00,000 but less than Rs.5,00,000 10%
If the Income more than Rs. 5,00,000 but less than Rs.10,00,000 20%
If the Income more than Rs.10,00,000 30%

Applicable for Individual Resident whose age is more than 60 yr but less than 80 yr

Income Tax Rate
If the Income less than Rs.2,50,000 NIL
If the Income more than Rs.2,50,000 but less than Rs.5,00,000 10%
If the Income more than Rs. 5,00,000 but less than Rs. 10,00,000 20%
If the Income more than Rs. 10,00,000 30%

Applicable for Individual Resident whose age is more than 80 yr

Income Tax Rate
If the Income less than Rs. 5,00,000 NIL
If the Income more than Rs.5,00,000 but less than Rs. 10,00,000 20%
If the Income more than Rs.10,00,000 30%

<b>What due date for filing the return?</b>

Following are due dates of filing return

Type Assessee Due Date
A company 30-Sep
A person other than a company whose accounts are required to be audited under the Income Tax Act or any other law 30-Sep
A working partner of a firm whose accounts are required to be audited under the Income Tax Act or any other law 30-Sep
Any other taxpayer 31-Jul

<b>Is there are any Consequences to file return after due date?</b>

Yes, if the return is file after the due date it will be consider as belated return. As per Income tax act belated return cannot be revised. Also, in terms of section 234 there may be interest payable on the balance unpaid tax.

<b>What are the Benefits of Income tax return?</b>

Following benefit which can receive from filing Income tax return
• It acts as a standard income proof in event of higher studies in abroad will help in getting visa.
• Quick loan application process
• Claim your refund.
• Claiming of carry forward losses

<b>What are the Consequences of non-filing of income tax? </b>

• Default, leads to interest liabilities and in some cases penalty as well.
• The default may be with respect to delayed filing, non-filing, incorrect income disclosure, etc.
• The individual is exposed to notices from the tax office, dealing with which could be a harrowing experience.
• An individual may lose out on an opportunity to revise the tax return if the return is not filed in time.
• A loss under one head of income, which cannot be set off against another, he may carry forward such losses to the subsequent financial years for future set-off.

HOW IS INCOME TAX RETURN FILED WITHOUT YOUR TAXWALA?

<b>How is Income Tax Return Filed?</b>

Return can be filed online via the official website of the Income Tax.

 

Detailed procedure of the same is annexed hereunder.

<b>What are the different types Income tax return forms?</b>

Based on the types of income earned by the individual or company, Income Tax Act has mandated different types of Income tax Return form

Particulars Person Type Income tax form
Income from salary & other Incomes Individual ITR-1(SAHAJ)
Income from salary & other Individual & Hindu Undivided ITR-2
Incomes
Individual & Hindu Undivided Family ITR-2
Income from partnership firm Individual & Hindu Undivided Family ITR-3
Income from Business & Profession Individual & Hindu Undivided Family ITR-4
Presumptive Income Any Assessee ITR-4S(SUGAM)
All source of Income Partnership firm ITR-5
All sources of Income
(claiming exemption U/s 11)
Company ITR-6
All sources of Income Company ITR-7

HOW IS THE ITR FILED?

<b>Following are steps which has to be followed for filing Income tax return on line</b>

Step1:You have to get registered in Income tax e-filing site for filing return online.

itr1

Step2:You have to select apropriate Income tax return form & get it download from Income tax e-filing site from “Download” Menu.

Step3:Open the downloaded Return Preparation Software (excel utility)

Fill mandatory and required details in ITR form

Step4:After filling the mandatory details in sheet validate each sheet by clicking the ‘validate’ tab.

Step5:After validating ITR you can ascertain the tax payable by clicking ‘Calculate Tax’tab

Step6:If there are any tax payable you have fill tax details & challan details in self asseessement field.(Challan is kind of receipt which we recevied after paying tax )

Step7:Generate XML file by clicking on ‘Generate’ tab. It will create new sheet which contains summary of tax & other related details.

Step8:After verifying every details you can click on ‘Save XML’ for generating XML file.

Step9:The said XML file needs to be uploaded to” income tax e-filing site”.

Step10:First you to log in income tax e-filing site. Put your PAN card, password & Date of Birth for log in.

Step11:Select appropriate ITR form & Assessment year. Click on Browse button to browse for the XML file. Select it and click on Submit button.

Step12:After completion of upload procees you will be asked for the download the ‘ITR-V’ (ITR V is Acknowledgement of filing Income tax return. It is document that should signed by the assessee & post to income tax Dept. )

Step13:Download the ITR V. you can open ITR by using the password which is PAN card followed by Date of birth.

<b>Can anybody fill ITR or we need to hire some Finance Consultant?</b>

Yes, anyone filed Income tax return by following above steps.

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