Income Tax Return

Income Tax:

Indian government enforces a tax called income tax on income (taxable) of HUFs(Hindu Undivided Families), individuals, firms, co operatives, trusts (defined as person’s association and individual’s body)and companies as well as those artificial person. From person to person, tax levy is different; Act 1961 of Income Tax governs the levy in India. CBDT (Central Board of Direct Taxes) governs the Department of Income tax which is part of Ministry of Finance’s Department of Revenue.

Income-tax Charge:

An individual who has his income exceeding the limits not chargeable under income tax is called assesse and his income would be chargeable at prescribed rates under act of finance. On his residential status basis, it is determined.

Tax of income tax is payable at enacted rate by Act of Finance (Union Budget) for each year of assessment on the basis of previous year earned income by each individual.

Type of income plays a vital role in determining whether income incurred is capital or revenue; taxations are:

Slabs Rate (%)/Income Tax Rates:

• For Men:

1. Nil – till 180000
2. 10% - from 180001 to 500000
3. 20% - from 500000 to 800000
4. 30% - from 800001 and above
5. Nil – till 190000 for women resident
6. 0% - till 250000 for 60 or above years resident
7. 0% - till 500000 for 80 or above years senior citizen

• For Others:

What is Income Tax Return?

ITR or income tax return is a way through which Income Tax Department receives income tax return from assessee on his income. According to Act 1951 of Income Tax, income tax return filing is a legitimate obligation for each individual when their income crosses non taxable income limits for every financial year. In case of those assessee who come under salaried class, require to present proof of their income in specific financial year by filling form 16 (Tax Deducted at Source Certificate); employer issues this form 16 to his employee at financial year end. A financial year in India starts from 1^st April and ends at 31^st March.

Income Tax Return Efiling/Online:

When June and July draws, it indicates of the time for filing e filing of income tax return or online income tax return. The salary class assessee receives Form 16A (Tax deducted on Other Income) and Form 16 (Salaried Income).

An individual needs to follow below mentioned procedure under online income tax return filing:

• An individual should get his online income tax return in XML valid format; this XML format can be picked from online income tax return source of Income Tax Department or from any e filing of income tax return Preparation web source.
• An individual should go through official website of Income Tax Department whose URL is http://www.incometaxindiaefiling.gov.in for e filing of income tax return
• Using User ID and Password, individual should log in to file online income tax return
• Now individual should choose and click relevant form of ITR
• The generated XML file should be uploaded
• An acknowledgement appears upon uploading the XML file
• The filing process of e filing of income tax return is completed if file uploads along with digital Signature.
• If file uploads without signature digital, individual has to get a print out of ITR-V form and should deposit the form physically to Income Tax Department. The e filing of income tax return filing procedure is termed completed only when ITR-V form has been filed.