An Income tax is a direct tax imposed by government on taxable income of those who are called Persons i.e. individuals, Hindu Undivided Families (HUFs), companies, firms, association of persons, body of individuals, local authority and any other artificial judicial person. Indian Income Tax Act, 1961 levies and governs income tax. Person, whose income exceeds the “maximum amount”, is chargeable to the income tax and is required to file income tax return in prescribed form.
An assessee who is liable to pay tax must also apply for PAN card. Various return forms are prescribed depending on the type of person and also sources of income. Our professional team of experts at ebizfiling.com shall help you with seamless experience of complying with necessary IT return filing requirements. Also get idea about Trademark Registration Services in India.
Who is supposed to pay income tax?
Income-tax is to be paid by every person. The term ‘person’ as defined under the Income-tax Act:- For the purpose of charging Income-tax, the term ‘person’ includes Individual, Hindu Undivided Families [HUFs], Association of Persons [AOPs], Body of individuals [BOIs], Firms, LLPs, Companies, Local authority and any artificial juridical person not covered under any of the above.
What are the benefits of Permanent Account Number or PAN Card?
A Permanent Account Number has been made compulsory for every transaction with the Income-tax Department. It is also mandatory for numerous other financial transactions such as opening of bank accounts, in bank account, deposit of cash in bank account, opening of Demat account, transaction of immovable properties, dealing in securities, etc.
How to file the return of income electronically?
Income-tax Department has established an independent portal for e-filing of return of income. The taxpayers can log on to www.incometaxindiaefiling.gov.in for e-filing the return of income.
Is there any limit of income below which I need not pay tax?
At this moment (i.e., for the financial year 2016-17) Individual, HUF, AOP, and BOI having income below Rs. 2, 50,000 need not pay any Income-tax. In respect of resident individuals of the age of 60 years and above but below 80 years, the basic exemption limit is Rs. 3,00,000 and in respect of resident individuals of 80 years and above, the limit is Rs. 5,00,000. For other categories of persons, no basic exemption limit exists and, hence, they have to pay taxes on their entire income chargeable to tax.
Where should the books of accounts of business be kept and for how long?
All the books of account and related documents should be kept at the main place of business, i.e., where the business or profession is generally carried on. These documents should be preserved for a minimum of eight financial years.
What is the purpose of Form 26 AS?
Form 26 AS is consolidated tax statement (Form 26AS) is used as a proof of tax deducted/collected on your behalf and the tax directly paid by you along with your income tax return.
Why is return filing mandatory even though all my taxes and interests have been paid and there is no refund due to me?
Amounts paid as advance tax and withheld in the form of TDS or collected in the form of TCS will take the character of your tax due only on completion of self-assessment of your income. This self-assessment is intimated to the department by way of filing of return. Only then does the government acquire rights over the prepaid taxes as its own revenue. Filing of return is critical for this process and, hence, has been made mandatory. Failure will attract levy of penalty.
Is it mandatory to file return after getting my PAN Card?
No. Return is to be filed only if you have taxable income.
If I have committed any mistake in my original return am I permitted to file a revised return to correct the mistake?
Yes you don’t have to worry about the same. Return can be revised within a period of one year from the end of the relevant assessment year or before completion of the assessment whichever is earlier. Get in touch with us to quickly file a revised return.
Still have confusion?
Don’t worry!! Our expert will help you to choose best suitable plan for you. Get in touch with our team to get all your queries resolved. Write us on firstname.lastname@example.org or call us @+91 9643 203 209.