It is fee charged by a government on a product, income, or activity.
Constitutionally the said money is to be used for the development and administration
of public at large.
What are the Types of taxes in India?
What is the difference between
Direct and Indirect taxes?
Direct
tax is paid to government directly by the person whereas burden of Indirect tax
is shifted from one tax payer to another, i.e. Income Tax is paid by person
directly to government. However, taxes like VAT, Service Tax are levied via
sale of goods or services.
What
is Income Tax?
Income
Tax is a tax levied directly on the income of a person. A person may be an
individual, a partnership firm, a company, body of individual or any
association of person.
What is Income in terms of Income
Tax Act, 1961?
Income is inflow of money. Income Tax Act,
1961 gives an inclusive definition of income to include the following among
others profit, gains, dividend income, salary etc. Thus any amount received
which may not be truly salary or profit may also be called as Income if it
derives a colour of profit or any other form of income.
What are the different types of
Income head?
To
facilitate the mechanism of collecting taxes from relevant assesses, the Income
Tax Act has bifurcated Income into following five heads (broadly) -
·
Income from salary
·
Income from House property
·
Income from Business & Profession
·
Income from Capital gain
·
Income from other sources
There
is a mechanism to compute income under each of these heads, including
mechanisms as to what shall be exempt and what shall be allowed as deduction in
each of these heads.
What
is Income Tax return?
It
is a prescribed form through which the particulars of income earned by a person
in a financial year and taxes paid on such income is communicated to the Income
tax department after the end of the financial year. Different forms are
prescribed for filing of returns for different Status and Nature of income.
Who
are supposed to pay tax?
As per charging section - section 4 of Income Tax Act, 1961
Income tax is payable by the person on his
Income which is earned during the previous year at the applicable on relevant
assessment year.
What
is Tax rate?
Annexed
herewith is the tax Rate Chart.
Particulars
|
Individual/Hindu Undivided family
|
Partnership firm
|
Company
|
|
|
|
|
Indian Company
|
Foreign Company
|
Basic Tax
|
As per slab rate
|
30%
|
30%
|
40%
|
Sucharge
|
10%
(If Income is
more than 1crs.)
|
10%
(If Income is
more than 1crs.)
|
5%
(If Income is
more than 1crs.)
10%
(If Income
is more than 10crs.)
|
2%
(If Income is
more than 1crs.)
5%
(If Income is
more than 10crs.)
|
Education cess
|
3%
|
3%
|
3%
|
3%
|
ndividual & Hindu undivided family has to
pay the tax as per tax slab rate
Applicable
for Individual Resident whose age is less than 60 yr
Income
|
Tax Rate
|
|
|
If the Income less than Rs. 2,00,000
|
NIL
|
If the Income more than Rs.2,00,000 but less than
Rs.5,00,000
|
10%
|
If the Income more than Rs. 5,00,000 but less than
Rs.10,00,000
|
20%
|
If the Income more than Rs.10,00,000
|
30%
|
|
|
|
|
Applicable for Individual Resident whose age
is more than 60 yr but less than 80 yr
Income
|
Tax Rate
|
If the Income less than Rs.2,50,000
|
NIL
|
If the Income more than Rs.2,50,000 but less than
Rs.5,00,000
|
10%
|
If the Income more than Rs. 5,00,000 but less than Rs.
10,00,000
|
20%
|
If the Income more than Rs. 10,00,000
|
30%
|
|
|
Applicable
for Individual Resident whose age is more
than 80 yr
Income
|
Tax Rate
|
|
|
If the Income less than Rs. 5,00,000
|
NIL
|
If the Income more than Rs.5,00,000 but less than Rs.
10,00,000
|
20%
|
If the Income more than Rs.10,00,000
|
30%
|
What
due date for filing the return?
Following are due dates of filing return
Type Assessee
|
Due Date
|
A company
|
30-Sep
|
A person other
than a company whose accounts are required to be audited under the Income Tax Act or any other law
|
|
A working
partner of a firm whose accounts are required to be audited under the Income
Tax Act or any other law
|
|
Any other
taxpayer (i.e. Individual,etc)
|
31-Jul
|
Is there are any Consequences to file return after
due date?
Yes, if the return is file after the due
date it will be consider as belated return. As per Income tax act belated
return cannot be revised. Also, in terms of section 234 there may be interest
payable on the balance unpaid tax.
What are the Benefits of Income tax return?
Following benefit
which can receive from filing Income tax return
- It acts as a standard income proof in event of higher studies in abroad will help in getting visa.
- Quick loan application process
- Claim your refund.
- Claiming of carry forward losses
What are the Consequences of non-filing of income
tax?
·
Default, leads to interest liabilities and in
some cases penalty as well.
·
The default may be with respect to delayed
filing, non-filing, incorrect income disclosure, etc.
· The individual is exposed to notices from the
tax office, dealing with which could be a harrowing experience.
·
An individual may lose out on an opportunity to
revise the tax return if the return is not filed in
time.
· A loss under one head of income, which cannot be set off against another, he may carry forward such losses to the subsequent financial years for future set-off.
How is Income Tax Return Filed?
Return can be filed
online via the official website of the Income Tax.
Detailed procedure
of the same is annexed hereunder.
What are the different types Income tax
return forms?
Based on the types of income earned by the
individual or company, Income Tax Act has mandated different types of Income
tax Return form
Particulars
Person Type
Income tax form
|
Income only from salary Individual
ITR-1(SAHAJ)
|
Income from salary & other Individual
& Hindu Undivided
ITR-2
Incomes
Family
|
Income from partnership firm Individual & Hindu
Undivided ITR-3
Family
|
Income from Business & Individual & Hindu
Undivided ITR-4
Profession
Family
|
Presumptive
Income
Any Assessee ITR-4S(SUGAM)
|
All
source of Income Partnership
firm
ITR-5
|
All sources of Income
Company
ITR-6
(claiming exemption U/s 11)
|
All
sources of Income Company
ITR-7
|
How is the ITR filed?
Following are steps
which has to be followed for filing Income tax return on line
Step 1:-:- You
have to get registered at https://incometaxindiaefiling.gov.in/ for filing return online.
Step 2:-- Download the appropriate ITR from https://incometaxindiaefiling.gov.in/ ("Download" Menu).
Step 3:-:-
Open the downloaded Return Preparation Software (excel utility)
Step 4:-- After filling the
mandatory details in sheet validate each sheet by clicking the ‘validate’
tab.
Step 6:- Generate XML file by clicking on ‘Generate’ tab. It will create new sheet which contains
summary of tax & other related details.
Step 7:- Upload the XML file generated at https://incometaxindiaefiling.gov.in/ using the login created in step 1.
Step 8:- After Logging in Click on " Upload Return Link" appearing on the left hand side of the dashboard. Select the approporiate ITR Form and Assessment Year.Click on Browse to select the XML File saved. Select the same and submit it.
Step 9:- On successful upload of the return ; you will be asked to download "ITR- V". This document
needs to be sent to Income Tax office after signing.