If you are an individual taxpayer, you should do income tax return filing. This blog post will provide basic information about income tax returns and what you need to do to file one. It is not a substitute for professional help. If you have any questions, please consult a tax advisor.
Income tax return filing is a process to file the return of income & should be vigilantly done and must be explicable in the proper manner.
The direct tax which is imposed on a person by the central government on the total income earned by him in the previous year at different rates is named Income tax.
These taxes play an imperative role in the revenue model of the government to develop the country’s infrastructure, education, healthcare, and other vital fields where the government is highly responsive to provide social welfare to the country.
What is a Person?
The tax is calculated differently depending on the total income earned as prescribed by the Income-tax act, of 1961. The term Person is described under section 2(31) of the Income-tax act where the Person includes-
- Hindu undivided family
- Local authority
- Artificial Jurisdictional person
The Income of an assessee assessable in India depends upon the residential status of the Person –
- RESIDENCE BASED TAXATION
- SOURCE-BASED TAXATION
- DETERMINATION OF TAXABLE INCOME
1. Firstly, the receipts needed to be checked if they are covered under section 2(24)
2. Then classify them into Indian receipt & Foreign receipt
3. Thereafter, it needs to be segregated into Capital and Revenue
4. After that, it needs to be bifurcated into accessible receipts
5. Clubbing the income and setting off the losses ( If any ) gives the Total income
6. Checking the deductions from GTI under sections 80C to 80V gives Total Taxable Income
INCOME TAX PAYMENT SCHEMES
- ADVANCE TAX
- SELF-ASSESSMENT TAX
- E- PAYMENT FACILITIES
Procedure of Income tax return filing
The income tax return is a form that needs to be submitted to the Income-tax department, containing the information on taxes and income. The Income-tax return filing is mandatory for all the persons who are liable to pay the tax of the country bearing the exceptions provided by the Act.
The person having Income below 5lakhs in the preceding financial year and those the Age of 80 years is not taxable and the rest must file the return before the due dates.
The due date is 31st July of the assessment year and 31st October is for those whose accounts are subjected to an audit. The Income-tax return can be filed on the website of the Income-tax department compiling the right ITR forms as per the status and the total income earned by the taxpayer.
After completion of the ITR, then the ITR-V, which is an Income tax return verification form, must be electronically verified or must be sent to CPC, Bangalore for the return processing and verification.
E-verification does eliminate the need to send a physical copy of the ITR-V to the CPC, which is a complicated task. Each step of the Income-tax return filing must be carefully observed and must be done by a knowledgeable person, as a single step may result in the saving of your tax or may be forced to pay the tax which could be saved.
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