“Nothing in this world is said to be certain except death and taxes” said the renowned Benjamin Franklin. Tax is one of the main revenue generators for the Indian government. Income Tax is one among the multitude of taxes received by the government. Income Tax Return is a proof that you have paid your income tax.
The Income Tax Act (1961) and the Income Tax Rules (1962) of India coerce earning citizens to file returns to the Income Tax Department at the end of every financial year.
can be done through various forms like ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7 wherein the assesse files information about his/her Income and pay the tax. It is very necessary for the assesse to know which form to file in each case which is based on the income and category of the assesse. For example, ITR 1 which is known as Sahaj is for those who have income from salary, one house property and income from sources other than lottery, racehorses and legal gambling. If agricultural income which is a part of other income is more than 5000 rupees, one cannot file ITR 1.
The things that are necessary for the assesse while filing income Tax Return are Pan Card, Bank account details or bank statements, Aadhaar card, Form 16 from the employer, Form 26AS, Details of assets if income is more than 50 lakh rupees, Investment details and Address details. Assesse should not get terrified by the process and if problem develops he/she can take help of
for choosing the necessary ITR form.
Income Tax Return covers a period from April 01 to March 31 of next year unlike calendar year. It is called as Financial Year. Income Tax Return needs to be filed within a due date announced by the Income Tax Department. The due date for filing the Income Tax Return for the FY 2016-17 was 05 August 2017. There is a penalty of 1% per month starting from the end of relevant quarter for not filing Income Tax Return before due date.
Not every Income earner pays the same amount of tax. The more the income, the more the tax you pay. Income can be from many ways, some of them are: Salary, Property, Capital Gains, Profits from a Business, Investment returns.
It is very difficult for a common man to understand the process of Income tax. Income tax consultants would be very helpful during such times. They are usually hired by a company on a contract basis who get a fixed amount of remuneration. They would maintain all the files accountable for filing the returns. But one can understand the process by firstly knowing the basic taxation system of India, secondly understanding the various deductions that are available like fixed deposit, LIC and finally by keeping up-to-date with latest developments in taxation in the country by constant focus on yearly Budget.
E-filing is the new way to file income tax. It involves a simple process of mentioning the type of income and submitting the related documents electronically. Benefits include quick processing, confidentiality, accessible from anywhere, environmental friendly, gain financial knowledge, saves money, proof, access to financial history and smoother process. It has reduced the trouble and pain for the common man, making life easy and hassle free.
After filing the Income Tax Return, one can verify the ITR in many ways like manually sending the ITR-V to CPC Bangalore within 120 days, or e-verify the return through Bank ATM, Bank account number, Net banking, Aadhaar OTP, Demat account number and registered mobile number and e-mail.
“Taxes, after all, are dues that we pay for the privileges of membership in an organized society” by Franklin D. Roosevelt, the only president to serve 3 terms who believed the wealthy should pay higher dues. He relied on the tax paid by the wealthy to fund various programs in the country and bring the country out of the Great Depression. He is also the one who introduced taxes on inherited fortunes. So, every individual should take a vow to pay the appropriate taxes to the government for the benefit of themselves, society and the nation.