Income Tax
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.
Taxable Incomes
•
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
•
Deductions
•
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
•
Surcharge
•
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
•
Relief
•
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.
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