Income Tax

Income Tax

What is Income Tax?

Income tax is a direct tax which is imposed by government as a legal charge on income of individuals or firms. It is defined under direct tax as it cannot be shifted from one person to another and is paid only by person on whom it is actually levied, whether he is an individual, company or any other organization.

As it holds a legal authority, Income taxes is collected on the basis of rules defined in Income Tax Act 1961 which states “What an individual or firm means” and, “How they are liable to pay taxes to government.”

How Income Tax is collected in India?

CBDT (Central Board of Direct taxes) is a legal establishment that defines Income tax rules in India. It issues timely changes to the Income Tax Act 1961 for levying different tax amounts on different individual incomes and maintains all records of yearly tax collections made to government. Earlier, Income tax was paid manually by sending the required documents to the tax department but now with the change in their digital structure tax filing is now done through their internet portal naming Incometaxindia.gov.in.

How it is calculated?

Income tax is an annual contribution made to government which follows a  period of 1st April to 31 march as a financial tax assessment year . For every taxpayer calculation and submission of income taxes is followed by these tax years.

Filing of income tax to present system is done through a proper sequence which starts with defining a residential status to assessee (tax payer) according to section 6 of IT Act , following with calculations of taxable income under various heads including “Income from Salary, Capital gains, Profits of business , Income from house property and other sources and defining the total to different income slabs which ultimately gives a sum of tax payable.

To Simplify this process, government has proposed three ways to collect Income taxes from public :

  1. Voluntary Self Payment : which is paid by every loyal tax payer annually .
  1. TDs (Tax deducted at source) : which is deducted from the source of income before making actual payment I.e which is deducted before you receive your salary.
  1. TCs ( Tax collected at Source)

Why Should I Pay Income Tax?

Income tax department to ensure better compliance’s and following of tax rules, has included a separate Section 271 to the act to specify what legal actions can taken against an assessee being person/company or any other organization for ignoring tax submission and for hiding their income details from tax department . For every assessee it is an essential thing to submit a tax return every year taking it is a prior responsibility as timely payment of their obligations would help them to get more government facilities , easy finance and remain untouched from legal hands .

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What to expect if you fail to meet the guidelines set for tax audit

For every legal procedure, government prescribes a specific set of rules to follow. Similar is the case with tax audit process in India. The Income Tax Act of 1961, states all guidelines for maintaining the books of accounts for proper…

Due Date For Tax Audit For AY 2016-17 And Things To Keep In Mind

Tax Audit Due Date For AY 2016-17 As most of us know, a tax audit is a review or inspection of individual or organisation’s tax return. It is a compulsory process as per the Income Tax Act 1961. Tax audit…

Can We Use ATM To E-Verify Income Tax Return Through Electronic Verification Code

Electronic Verification Code To facilitate the tax-payers, Central Board of Direct Taxes (CBDT) through a notification has allowed the verification of Income Tax Returns for Assessment Year 2015-16 electronically through generating EVC (Electronic Verification Code). If the Income Tax Returns…

Before you rush to save more taxes

Before you rush to save more taxes Well, it is the month of Valentine. Though we have surpassed February 14, the fervour is still – as the cliché goes – in the air. If you eavesdrop on conversations, you would…

Your guide to submit investment proofs

Your guide to submit investment proofs Well, it is the month of Valentine. Though we have surpassed February 14, the fervour is still – as the cliché goes – in the air. If you eavesdrop on conversations, you would often…

Now E Verify Returns Using Your Bank or Demat Account Details

E Verify Returns Using Your Bank or Demat Account During the tax-filing period of 2015, the Income Tax Department inched a step closer to taking the entire e-filing procedure paperless and thoroughly online. This was achieved by launching a facility…

Transfer pricing – What should you watch out For

Transfer Pricing (TP) Regulations in India were introduced in 2001 for curbing tax avoidance by laying down norms for computation of income arising from international transactions or specified domestic transactions(“SDTs”) having regard to the “arm’s length price”. Transfer pricing basically…

Everything my clients need to know about Saving Taxes

Tax, this three letter word spells a big headache for people. Many people do not even know how much tax they are paying every year. Being a tax advisor at H&R Block, I get many enquiries from my clients about…

Make your Investments Accessible to Family – TaxReturnWala

Family is the base from which we all evolve and hence it is held closest to our hearts. We make every effort to protect them and make arrangements for their wellbeing. However life is fragile and the unexpected happens. Even…

Investment in Public Provident Fund & its Tax Benefits

One of the most frequent question that client’s usually ask me as a tax adviser is “Which is a good option, for investment for tax saving purpose.” One of the options I suggest is Public Provident Fund Scheme which is…

Now Submit Form 15G/15H Online

Submit Form 15G/15H Online If your income is not taxable and yet your payments are being subject to tax deduction at source (TDS) then you can now generate the Forms 15G and 15H online and request non-deduction. Goodbye, physical form…

Five New Year Tax Resolutions You Ought to Make

Five New Year Tax Resolutions You Ought to Make New Year, new goals, a fresh breeze of change blowing through! Well, it is the right time to promptly correct behavior which is causing harm and replacing them with those which…

Is Taking Home Loan A Smart Decision For Saving Taxes?

Given the high Property prices in the country, it is almost impossible to buy a house without availing housing loan. Home Loan Tax Benefit – A housing loan usually comprise of 70-80% of the Property’s value. So, it is probably…

Genesis of the Indian Taxation System

Indian Taxation System People generally think that taxes paid in today’s time are of recent origin but there are lot of proofs and evidences from the past scenario that show taxes on income or other forms were also levied in…

In What Sense does the Filing of Income Tax Return Benefit a Citizen

Either “Ouch, the tax!” or “Yeah, the tax” could be the reaction when one comes to know about their dates to pay income taxes. But the people in “Ouch” category forget about their moral and socially requisite responsibilities that ask…

A quick guide for those who are filing an ITR for the first time

A quick guide for those who are filing an ITR for the first time Income tax assessment year 2015 -2016 has already started. Most of us are looking forward to file our return. Well, the first thing that comes to…

Is It Mandatory To Have Pan Number For The Indian Citizens?

IS IT MANDATORY TO HAVE PAN NUMBER FOR THE INDIAN CITIZENS? & SPECIFIED TRANSACTIONS WHERE PAN IS NEEDS TO BE QUOTED Permanent Account Number, a unique 10 character alpha-numeric identification, today, acts as a proof of identification. But is it…

Points to take note of while filing an income tax return

Filing Income Tax returns: Filing a income tax return is essential for tax payment and claiming refunds of overpaid taxes. Tax filing simply means declaration of your income and taxes to the government. We all know paying our taxes is…

Interest Under Section 234 A, B, C Of Income Tax Act,1961

Ever caught in a situation when you couldn’t file your income tax return on time? Or ever caught in the complexities of default made on payment of Advance Tax? You are not alone. Here is everything you need to know…

Online E Filing Of Income Tax Return Is Better Than Offline

Do you earn more than 5 lac monthly? So, you need to E filing of income tax return. But what method you choose to file your income tax? The old offline method in which you need to go out of…

Tax saving options other than those available as per section 80C of income tax act

Tax Saving Tax saving options available as per section 80C of income tax act. Does it feel good to pay a large amount of tax? The answer is a big NO. Tax is something that revolves around our life. As…

Does the income of a minor call for levy of taxes?

Tax and earning goes hand in hand .According to Income Tax Act of 1961, every individual has to pay tax as per income tax slab. In our previous article- Quick guide for individuals filing ITR for first time, we have…

Income Declaration Scheme 2016

The Finance bill, 2016 introduced a scheme Income Declaration Scheme, provides an opportunity to persons who have failed to pay taxes from beginning to till date and pay tax, surcharge and penalty. Total amount to be paid for disclosing of…

Concequencies of not filing Income Tax Return by due date

Income Tax Return within due date It is Mandatory to file an Income Tax Return for a Company and Firm (Partnership/LLP) irrespective of the fact that it has any income or not. Matter of choice to file Income Tax Return…

What Role Does TDS Deduction Play?

TDS – Tax Deducted At Source Have you ever checked your payslip? You will find a section known as TDS. TDS stands for Tax Deducted at Source. CBDT (Central Board of Direct Taxes) is a body who manages the policies…

Different Types of ITR

Types Of ITR What are the Different Types of ITR Forms? There are up to nine types of income return forms We have divided this article into two part Part-1 is ITR of Individuals Part-2 is ITR for Non-Individuals ITR-1(SAHAJ) ITR-5 ITR-2…

What is tax audit, how does it affect tax department and the tax payers

Are you aware of Tax audit ? If not, this is the best platform to understand it. Literal meaning refers to inspection or review. Be it a businessman or professional, taxpayers in India need to get the tax review done…

At Taxreturnwala we assist in Income Tax Return preparation you just have to register with us, to get started. Upload the basic details. Upload the details regarding your income, saving, deductions etc.Specify if any TDS has been deducted or Advance tax has been paid.You will get a call from our executive for verification.Computation of your income will now be sent to your registered e-mail address.On conformation, we start your tax filing.

We at taxreturnwala.com have always been at your beck and call for letting you earn and save money in a hassle free manner to help in easy Income tax return preparation. Our intense care and agile calculations have served thousands patrons who have procured up their heaps of earnings. We are neither ‘the acme’ nor ‘at the acme’ of those mountains of earnings but undoubtedly we are the broadest and firmest foundation of those erected mountains whose tall and sharp acmes have bifurcated all of the opposite winds.

Our team of qualified experts has been timely catering to the financial/ legal obligations of our patrons with swift and prompt financial solutions of saving legal costs and meeting up with the compliances because we understand how hard it is to earn money.We work with business owners throughout their companies’ life cycles, helping them in legal and regulatory requirements and to overcome the obstacles blocking effective compliance. We provide the kind of leadership and guidance at every stage that will inspire and encourage continued success of entrepreneurs and ensure the business remains continually growing.