What is Income Tax?
An Income Tax Return (ITR) is a form that an individual must submit to the Income Tax Office of India. It contains information about the person’s income and the taxes paid that year. The information stored in the ITR must be relevant for a particular fiscal year from April 1st to March 31st of the following year.
Source of Income
The income you earn can be from sources such as salary, profit in business, sale of house or property, dividend or capital gains, and interest received among others. If you have paid tax in excess during a year, the money is refunded back to you by the Income-tax Department.
Types of ITR Forms
The Income Tax Department has prescribed 7 types of ITR forms – ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, ITR-7 and applicability of the form will depend on the nature and amount of income and the type of taxpayer.
End date of ITR Filing
As per the Income Tax Act provisions, the last date to file ITR by the taxpayers (tax audit not applicable) for FY 2021-22 is July 31, 2022. For other taxpayers to whom audit is applicable, the return filing due date is October 31, 2022.
Why Income Tax Return is necessary?
According to the income tax rules, if you exceed your income limit, that is, if you want to be exempt from government taxation, you must file your tax return according to the annual tax rate table. However, if you accidentally miss the deadline, you may be punished. Also, at this point, you will not be able to approve visas or obtain future loans. Filing an income tax return is often seen as a tedious process. That is, people refrain from submitting them. But as a citizen of any country, it is your responsibility to submit a declaration each year. Apart from being responsible, income tax can be very beneficial to your needs. Even TDS shares some common benefits.
Tax Slabs for Financial Year 2021-22
Income tax is part of the income that must be paid to the Government of India to pay salaries to those employed by the central or state governments in order to fund the development of various infrastructures. All taxes levied are based on law, and it is the Income Tax Act of 1961 that provides for legal income tax provisions.
Income tax must be paid by all individuals, undivided Hindu families, individual groups, individual legal entities, businesses, businesses, local governments, and artificial legal entities that receive the generated income. Based on the lump sum payment. Income tax seems like a boring tax to most of us, and it has a lot to do with the fact that it involves a lot of complexity and detail when calculating and paying income tax.
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