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.
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 :
- Voluntary Self Payment : which is paid by every loyal tax payer annually .
- 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.
- 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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Tax Saving Tip – Save Taxes By Paying Rent To Your Parents – An Awesome Idea.
Pre-Planning of refunds and exemptions is significant to e-filing of IT return. For some effective tax saving, one must ensure to get complied with all guidelines relating to different sections, for which taking an expert advice is always recommended. While…
Have You Submitted Your Income Tax Saving Proofs Till Now? If Not Be Prepared For A Major TDS Deduction
Gaurav Das, an employee in an insurance company realized the importance of sending timely tax-saving documents in February 2015, when he received a fifth of his stated monthly salary. Shockingly he made a call to the accounts department where he…
Income exempted for upto Rs 5 lakh ; How will the new income tax slab be look like
Announced in the Budget 2020, FM Nirmala Sitharaman bought significant changes in the direct tax policies. Issued amendments in the Finance Bill 2020, an optional theme for taxpayers has been placed this time in the tax rules. According to the…
What is ELSS ? Is it a good option to save tax?
“Govt to increase tax payer’s base !” – ELSS Have you read the same headline in your newspaper? Not yet! I hope in a day or two you may be saying this eventually right . After demonetization , Govt. is…
How Can You Save a Huge Amount Of Tax by Taking a Home Loan?
As the word “tax” comes to our mind, we always think about various ways through which we could avoid paying it. But I think paying your fair share should be considered one of the most patriotic activities someone can engage…
How are withdrawals from EPF Taxed?
EPF (Employee Provident fund scheme) For a salaried person, dependence of his family for financial matters is always a major thought of concern. An expected amount which an employee receives as his monthly salary, is not always enough to create…
How to File Tax Returns when you have multiple Form 16?
Multiple Form 16 is a Certificate of deduction of tax at source under Section 203 of the Income Tax Act, 1961. It contains the details regarding- salary earned by the employee tax deducted from it by the employer In simple words…
How to ensure your Gifts are exempted from Gift Tax in India?
Everyone loves to receive presents. Gifts are also a way to express our happiness and affection in India. Every birthday is incomplete without presents from parents, friend, and relatives. Especially in marriages, gift is given both as cash and expensive…
Difference between a LAP and Home Loan
Home Loan is something borrowed for a particular duration of time and that has to be paid back along with the extra ordinary payment of interest. People take different kind of loans as per their requirements. Most common loans are…
FY 2016-17 is about to end. What needs to be done if you haven’t planned your tax savings yet.
Tax Planning is contribution towards tax saving and reserves, 31 March 2017 is closer which talks about closing of financial year and allocation of income in the way possible so as to reduce tax liability abiding the Income Tax Act,…
Taxation of Gold and Gold Products
The major asset in investment category is gold, currently a huge favorite of investors who fear almost all other assets, especially paper money. Taxation has also lent its glitter to this metal either by providing incentives or sometimes taxing it…
Are you aware of Fat Tax in India?
Fat Tax – We are already aware of different kinds of taxes imposed by government on food items . If you check your McDonald or Subway bill you will find that other than base amount, we pay a variety of…
How Safe Is Our Mutual Fund Investments?
Mutual Fund Investments It seems like asking – How safe is to drive a car? That depends on you. It’s great to ride a car but first you need to either learn to drive or hire a driver. If you…
Certain Types of Income you need not to Pay Tax On
Moving to the end of financial year, last 3 months demand a great attention of every business professional to utilize them for planning a good strategy to save some part of their hard earned money. Most of you may…
Tax Benefit on Life & Health Insurance, Premium Payments & Claims
Are you looking for an investment? What is your main priority “tax saving” or “getting better returns”? Obviously! Both are equally important, but getting such an investment is not an easy task. But wait! Here is an investment tool that…
What rewards Income tax payers can expect from budget 2017 after demonetization?
Demonetization has been a strong move recently taken by the Indian government. We have seen both appreciations as well as criticism of the notion. Now the million dollar question that comes to every citizen’s mind is what next? How will…
How many countries other than India ever had Demonetization of their currency notes?
Indians recently became familiar with the powerful word “Demonetization” and its effect on one and all. Demonetization means cease of any currency unit as a legal tender by a country. On 8 November 2016, the prime minister of India, Narendra…
Exchange of Old Currency notes stopped on Dec. 30. What Next? Is everything going to be smooth? Or the situation will become more complicated?
Everyone is effected by the revolutionary step of Demonetization taken by Narendra Modi on 8th Nov, 2016.As per the announcement old currency notes of Rs 500 and Rs 1000 ceases to be legal tender effective from 9th Nov,2016. Several notices…
Govt. has no more plans to give Opportunity to Declare The Black Money
The heading itself is stringent enough to state that present government after launching surgical strike against black money with plenty of schemes is in no mood to forgive the black money hoarders. This article attempts to highlight schemes of Government…
Everything You Need To Know About Impact of Currency demonetization for Indian Economy
November 8, 2016 the date not any Indian can forget, the announcement of demonetization left citizens on the roll. Demonetization is the financial step in which a currency unit’s status as a legal tender is declared invalid. Such withdrawal of…
Is there a need to panic about the recent change in currency notes? Why or Why not?
At the stroke of the hour on midnight of 9th November, 2016, Prime Minister Narendra Modi announced a key economic decision, the demonetization of Rs. 500 and Rs. 1000 currency notes with immediate effect. Government has attempted to tackle issues…
Positives and Negatives Of Demonetization
The demonetization of Rs. 500 and Rs. 1000 banknotes was a step taken by the Government of India on 8 November 2016, ceasing the usage of all ₹500 and ₹1000 banknotes of the Mahatma Gandhi Series as a form of…
Short term & long term impact of Currency Demonetization for Indian Economy
The demonetization effort being led by PM Modi in India is appreciable to an extent but follows positive as well as negative aspects. The aim is to wash the stock of “black money” out of the economy and get it…
Black Money – Impact of Recent Change in Currency Notes of Rs. 500 and 1000
8 th November, 2016 shall be marked in the history of Indian Economy. Prime Minister Narendra Modi took a bold step towards wiping out black money from India. The reason specified by him for this drastic step was that black…
Do you really need to worry about Income Tax audit? A simple guide to having a worry-free audit.
Be it a businessman, professional or individual, everyone has a fear of getting his book of accounts reviewed. Income Tax Act of 1961 has mandated the income tax audit process for all individuals as per Section 44AB. First, it is…
Understanding section 44AB of Income Tax Audit in India
Understanding section 44AB of Income Tax Audit in India Individual or business person has to get his book of accounts reviewed as per Section 44AB of Income Tax Act 1961.It sets the general guidelines to assist the assessing officer to…
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 / Form 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 Form 15G and Form 15H online and request non-deduction….
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.