Everything you should know about Income Tax - The India Saga



Everything you should know about Income Tax

In India, paying income tax is a legal and acceptable financial need. Every person making more than a specific amount…

Everything you should know about Income Tax

In India, paying income tax is a legal and acceptable financial need. Every person making more than a specific amount of money is required to file a specific amount of tax. The government regulates income tax rates, income slabs, and regulations, which are subject to periodic modifications. Nevertheless, it is the duty of every taxpayer to declare their income accurately and to make timely tax payments. 

What is Income tax?

Income tax is a levy imposed on an individual’s or business’s yearly Income throughout a fiscal year. The Income Tax Act, 1961 governs the income tax system in India. This establishes the guidelines for the computation, assessment, and collection of income taxes. Each year, taxpayers are required to file an income tax return by the corresponding deadline. in accordance with the law to declare their income and, if necessary, confirm a tax refund.

Who is required to Pay Income Tax?

Any individual earning Rs. 2.5 Lakh annually are eligible to pay income tax to the Government of India. Some different type of taxpayers in India:

  1. Individuals- divides as individuals under 60 years of age, individuals between the age of 60 and 80 years and individuals above the age of 80 years.
  1. Hindu undivided family
  1. Associations of person
  1. Artificial juridical person
  1. Firms
  1. Companies 

How to file Income Tax?

 Step by Step to apply for Income Tax Return Online 

Step 1 – Login

Need to login at e-filing website 

Enter your PAN and then enter your password , later Login

Step 2- Go to file Income Tax Return

Click on the e-file tab> income tax> File income tax return

Step 3- select the right assessment year. 

For example select assessment year as 2024-25 if you file for 2023-2024.

Step 4- select you applicable filing status

Select your applicable filing status such as individual , HUF or others.

Step 5- select validate the profiled information

Before moving forward the information you need to check the status of your identity. Such as PAN, Adhar Card, Name, Date of Birth, contact information and bank details.

Reasons to fill income tax?

Filing income tax  is important because it is a way of the government of India that collects revenue with a certain amount of individuals whose annual income is above 2.5 lakh. This is a way the government collects revenue to fund public services like schools, hospitals , roads and more. Additionally filling your tax on time ‘SHOWS YOUR CARE WITH THE AMOUNT YOU SHARE’. That means with our little share we could contribute to the wellbeing of our country.

  1. For the welfare of our country and its people
  2. For claiming losses
  3. Claiming funds’
  4. Loan applications
  5. ITR Receipt
  6. Avoid penalty 
  7. For buying term insurance 

Benefits of filing Income Tax

  1. It allows you to comply with the law and avoid any penalties.
  2. Along with legal consequences
  3. Helps in claiming tax deduction
  4. Credits and refunds that you may be eligible for.
  5. Overall tax liability and increase  savings