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Here, we are helping to indian people for E-filling your ITR Return Guide to How to E-Filling ITR Return ? But First You Undertand what is ITR Return ? Why E-filling ITR Return ? We are liable to E-filling ITR Return ? more more question disturbted to our mind? Here we are described to what is Income tax ? when born in Income tax in india ?
what is income tax?
An income tax is a goverment levy(tax) imposed on individuals or entities (tax assessee) that varies with the income or profits (taxable or non taxable income) of the taxpayers.Details very widely by juridisction. Many juridictions refet to Income Tax on business entities as companies tax or corporate tax. Annual charge lavied on both earned direct or indirect income like Salaries, Wages, commission, and Unearned Income like Share Dividend,Bank Interest, Bank Dividend, Friends/Finance Loan Interest, House/Shop/Other type of rents. In addtion to financing a governments operations progressive income taxation is designed to distribute wealth more every in a population, and to serve as automatic fiscal stabilizer to cashion the effects of economic cycles.Its two basic types are ...
- Personal Income Tax:-
Levied on income of individuals like saliers income, Rents income Partnership and sole-proprietorship Income.
- Corporation Income tax :-
Lavied or profits (net profits) of Incorporated firms,
However, presence of tax loopholes (whose number increase in direct proportion to the complexity of tax code). may allow some whealthy persons to escape higher taxes without violating the letter of the tax laws..
Useful Examples :-
The mans income tax was getting higher as he moved up in the company and he started to make more money. he knew that climbing the corporate ladder would come with consequences.
Even though no one like to pay in we all pay the income tax so that the government has money to make our lives better.
Income tax is an annual tax on income. The indian income tax Act (Section 4) provides that in respect of the total income of the previous year of every person, Income tax shall be charged for the corresponding assessment year at the rates laid down by the finance Act for the assessment Year. Section 14 of the Income tax Act. Further, provides that for the purpose of charge of income tax and computation of total income all income shall be classified under the following income tax heads as income.
1.Income from salary
2.Income from House Property
3.Income from Profit & Loss of Business or Profession
4.Capital gains
5.Income from other sources
The total income form all the above heads of income is calcualted in accordance with the provisions of the Act. as they stand on the first day of April of any Assessment year in this booklet an attempt is being made to disscuss the various provisions relavant to the salaried class of taxpayers as well as pensioners and senior citizens.
Income from salaried person
Income from other sources
Business
Capital Gains
Income from other sources
Whealth Tax
PAN
TDS
General Information
26As
Taxable Income
Income Tax Refund
Return of Income
Due date of filling tax return
Deduction
NRIs
Assessment year
Assessment year means the period of twelve months starting from April 1 of every year and ending on March 31 of the year. The period of assessment year is fixed by statute. Income of previous year of an assessee is taxed during the following assessment year at the rates prescribed for such assessment year by the relevant Finance Act.
Assessee
Assessee means a person by whom any tax or any other sum of money (i.e., penalty or interest) is payable under the Act.
Gross total income
Income of a person is computed under the heads of Salaries, Income from house property, Profits and gains of business or profession, Capital gains and Income from other sources. The aggregate income under these five heads is termed as "gross total income".
Total Income
Total income of an assessee is gross total income as reduced by amount deductible under various sections.
Business
Meaning of business includes any trade, commerce, manufacture, or any adventure or concern in the nature of trade, commerce or manufacture.
Capital asset
The expression "capital asset" means property of any kind held by an assessee, whether or not connected with his business or profession.
Company
The expression "company" is defined to mean the following 1. any Indian company ; or 2.any body corporate incorporated under the laws of a foreign country ; or 3.any institution, association or a body which is assessed or was assessable / assessed as a company for any assessment year commencing on or before April 1, 1970 ; or 4.any institution, association or a body, whether incorporated or not and whether Indian or non-Indian, which is declared by general or special order of the Central Board of Direct Taxes to be a company.
Salary Income
Income under the head 'salary' comprises of remuneration in any form (including perquisites) received by an employee from employer. Thus, there should be contractual employer-employee relationship. The contract may be express, oral or implied. Salary is chargeable on due or receipt basis. Arrears of salary paid or allowed are includible if not charged to income tax for any earlier previous year. 'Salary' includes wages, dearness allowance, Bonus. gratuity, annuity or pension, advance of salary, Fees / Commissions perquisites/ profits received from employer in addition to salary, Leave encashment while in service, Employer's contribution to provident fund in excess of 12% of salary of employee, profit in lieu of salary.
Allowance
Allowance is generally defined as fixed quantity of money or other substance given regularly in addition to salary for the purpose of meeting some particular requirement connected with the services rendered by the employee or as compensation for unusual conditions of that service. It is fixed, pre-determined and given irrespective of actual expenditure.
Perquisites
The term "perquisites" is defined as a gain or profit incidentally made from employment in addition to regular salary or wages, especially one of a kind expected or promised. Thus, the phrase "perquisites" signifies some benefit in addition to the amount that may be legally due by way of contract for services rendered.
Employees provident fund
Provident fund scheme is a retirement benefit scheme. Under this scheme, a stipulated sum is deducted from the salary of the employee as his contribution towards the fund. The employer also generally contributes simultaneously an equal amount out of its pocket to the fund. The contributions of employee and employer are invested in gilt-edged securities. Interest earned thereon is also credited to the provident fund account of employees.
Approved gratuity fund
It means a gratuity fund which has been and continues to be approved by the Commissioner of Income-tax in accordance with the rules. Tax treatment of contribution to and payment from the fund is employer’s contribution is exempt from tax and actual payment received by the employee is exempt from tax within the limits.
Here First we are know about Assessment Year?
Know about Assessment Year :-
Assessment year means the period of twelve month starting from April 1 of every year and ending on March 31 year. The period of Assessment year is fixed by statue income of previous year of an assessee is taxed during the following assessment year at the rates prescribed for such assessment year by the relavant finance Act.
Know what is your ITR For You?
First you decided to what is your Income come from sources like
you are salaries perosn and Unearned income is Bank Interest, share dividend income so ITR 1
your main income is Rent and adding unearned income so ITR 2
you are partner in more than 2 partnership firm so you liable to filling ITR 3
you have owner of Proprietorship so you are iiable to filling ITR 4
you are want to filling a ITR return for Partnership Firm so you are liable to filling ITR 5
