It is mandatory to file income tax returns in India if any of the below conditions are applicable to you (as per the Income Tax Act) Earn gross annual income more than- Particulars Amount For individuals below 60 years Rs 2.5 Lakhs For individuals above 60 years but below 80 years Rs 3.0 Lakhs For individuals above 80 years Rs 5.0 Lakhs Earn income other than salary like house property, etc. Want to claim income tax refund from the department. Earn from or have invested in foreign assets.
Some of the commonly observed tax return filing mistakes - Not reporting all the sources of incomeFailing to report income from sources such as - interest savings account, interest on Fixed Deposits (FDs). Further, upon change of job, the individual should make sure that he reports the income earned through his previous employer as well.Also, any income earned by a minor through investments is also taxable In case you have made investments in your children’s name, keep this in mind while filing your taxes.Not paying tax on house propertyFew people assume that there is no income from multiple residential properties and thus there is no tax payable. However, if you own more than one house, you are liable to pay a certain amount as tax, even if you have not…
An income tax return (ITR) is a form which you need to fill and submit it electroncially thru the tax Department website. In this form details of your income and taxes is to be given. The income tax return forms are in various formats viz ITR-1, ITR-2 etc. Each form depicts a separate category of Income tax payers. The tax returns must be filed every year and must be filed on or before the due date.
Form 16 is a TDS certificate issued by an employer to his employee when TDS is deducted by the employer. The employer deducts this tax on behalf of the Government and after deducting deposits the tax to the Government. The employer is then required to give a certificate to the employee giving the details of tax deducted. This certificate is called the Form No. 16 or just Form 16. If no TDS has been deducted then, the employer may not a Form 16.
There are 2 types of taxes in India – Direct tax and Indirect tax. Direct tax is a tax that is calculated and paid directly on your Income. Income tax is a direct tax. Direct Tax is proportional to the income of the person. Indirect tax is a tax that is indirectly charged to you on purchase of goods or use of service Goods and Services Tax (GST) is an important and significant Indirect Tax. Everyone who earns income above a certain amount is subject to income tax. Your income could be from salary, interest income from savings, income from mutual funds, sale of property or business or professional income. Income tax rates are pre-decided at the start of the year in the Union Budget (in the Parliament of India).…
All types of business structures like Private Limited Company, Limited Company, Limited Liability Partnership company, One Person Company are registered under the Ministry of Corporate Affairs. All such companies are mandatorily required to file IT returns as prescribed by the Income Tax Act.
Irrespective of income or loss, partners of partnership firms or LLP’s are required to do IT filing.
All LLPs or Limited Liability Partnerships are considered separate legal entities and their income tax rate is similar to that of all companies registered in India. The Income Tax Act declares that all LLP’s must file their tax returns irrespective of the loss or gain they have incurred in that year. If the LLP has seen no business activity or registered income, then a NIL income tax must be promptly filed.
As per the Income Tax Act, all partnership firms are treated as separate legal entities and are applicable for tax rates.
A proprietorship firm is run by a single person called the proprietor. Proprietorship is not a separate legal entity, that is, both the proprietor (business owner) and the business are the same. Due to this, ITR filing for proprietorship is the same as that of the proprietor. Proprietors are required to file IT returns year after year.