Income Tax is a tax that is supposed to be paid by every business and every individual by law. These individuals or businesses are those that earn an income which is a significant amount on per annum basis with any services that they provide, savings account, products, pensions that they receive, businesses that they deal in, etc. in the country of India. The income taxes that people pay have to be shown on a income tax return sheet in order to process the returns and show how much taxes have been paid. This process should be done and dusted within the prescribed deadline. After that date, no filings for the taxes will be accepted for the purpose of tax returns. Even non - resident Indians (NRIs) have to pay taxes in the country as per law but it will only be for the income or salaries that they have generated or received with services they worked for in India and not in the country that they are a resident of.
What are Income Tax Returns - ITRs?
The Income Tax returns are tax returns that are received by people who have paid extra taxes or those who are eligible for tax exemptions, tax benefits or tax deductions. This is the reason that everyone should file for income tax returns. But before you do that, make sure to calculate your income tax with the help of the income tax calculator. In case the tax return sheet shows that there is an amount that has been paid in taxes by the tax – payer which is more than needed or there are certain tax exemptions, it will be refunded to them by the income tax department. The income tax paid by the individual has to be shown on a sheet and filed within a prescribed deadline. In case the income tax paid is unrequired, the extra amount will be refunded.
• Income from salaries
Income from salaries is the income that is received as a salary by providing your services to an individual or a company or any institution. These are levied on salaries as well as pensions.
• Income which is generated from various financial sources
Income generated from various sources are the incomes received by investing or participating in various sources that are money savings bank, from fixed deposits, winning large amounts of money in legit game shows, etc. The income which an individual would receive from participating in any show or game or quiz is also taxable as per the Income Tax Act.
• Income generated from house property owned by the individual
Rent money - Income received through renting a property to another party.
Any income received or generated from house property which is owned by an individual is also taxable. If you are renting the property or the house out to another party, the money received from that would be taxed on. House property of a person will generate income in terms of the rent that they receive.
• Income received from capital gains
Income received from capital gains are the incomes that are generated or received from the sale of the capital assets owned by an individual. These capital assets can be house properties, mutual funds, shares, equities, etc.
• Income from professions, businesses or free - lance work which is self - practiced by the individual
The income from professions, businesses or free - lance work which is self - practiced by the individual is the self - generated income that an individual will receive through working as individual entity and not rendering their services in firms or companies. These are people who are chartered accountants rendering their financial services, as a contactor working on project basis, doctors practicing on their own, tuition teachers in coaching centers, as a freelancer working on project basis, self - practicing lawyers, self - employed individual, running businesses, etc.
How the tax calculator can help you calculate your taxable incomes?
The tax calculator will tell you to fill in all your incomes that you have received from various sources in a particular year and then it will calculate your income tax based on the income that you generated for yourself, your age as well as the amount of income you got.
Go to the Income Tax Department’s website by the Government of India to get your income tax calculated easily:
The following are all the details that the Tax Calculation form by the Income Tax Department will ask you in order to calculate your taxes, so make sure that you have all the details handy and fill them up properly:
• Assessment Year
• Tax Payer
• Male / Female / Senior Citizen
• Residential Status
• Income from Salary
• Income From House Property
• Capital Gains
• Income From Other Sources
• Profits and Gains of Business or Profession (enter profit only)
• Agricultural Income
• Net Taxable Income
• Income Liable to Tax at Normal Rate
• Short Term Capital Gains (Covered u/s 111A) 15%
• Long Term Capital Gains (Charged to tax @ 20%) 20%
• Long Term Capital Gains (Charged to tax @ 10%) 10%
• Winnings from Lottery, Crossword Puzzles, etc) 30%
• Income Tax
• Education Cess
• Secondary and higher education cess
• Total Tax Liability
• Due date of submission of return
• Actual date of submission of return/date of completion of assessment
• TDS/TCS/MAT (AMT) Credit Utilized
• Detail of tax paid
• Amount of interest u/s 234A
• Amount of interest u/s 234B
• Amount of interest u/s 234C
The tax calculator will help calculate your taxable income as it includes all the parts of the incomes that have to be taxed.