This article elaborates on the income tax, the administrative framework of Income-tax, the Return Filing Period, who is subjected to furnish the tax, what is the method to furnish the tax, precautions in tax payment, when to furnish the tax, advance tax computation, Income Tax Challans, Exempt Income Taxable, Income, Form 26AS under income tax, Assessing Officer, Revenue receipt, Capital receipt, Agricultural Income, Books of Account to Maintain, Profession, Period towards which books to be held and others.
Describe the Term Income Tax?
It is a tax imposed by the Government of India on the income of every individual. The law controlling the income tax comes in the income tax act 1961.
What Would be the Administrative Platform for Income Tax?
The revenue functions of the government of India are handled via the Ministry of Finance. The Finance Ministry would assign the chores of the administration of direct taxes like Income-tax, Wealth tax, and others, to the central board of direct taxes (CBDT). The CBDT would come under the Department of Revenue in the Ministry of Finance.
CBDT furnishes important inputs for the scheme stating and planning the direct taxes and indeed assists the direct tax laws via the income tax department. Hence, the income tax law is administered via the income tax department beneath the authority and custody of the CBDT.
Who is Supposed to Furnish the Income Tax?
Every individual must furnish the income tax. The term person described beneath the income tax act beneath section 2(3) shells in its ambit natural and artificial persons.
Towards the purpose of charging the income tax, the term person consists of the individual, Hindu Undivided Families [HUFs], Association of Persons [AOPs], Body of individuals [BOIs], Firms, LLPs, Companies, Local authorities including any artificial juridical individual not comes beneath any of the above.
Via definition of the term person, the same could be seen that apart from a natural person that is an individual any type of artificial entity shall be responsible to furnish the income tax.
What Method Government Chooses to Collect the Income Tax?
Taxes are being collected via the Government in three modes:
- Voluntary payment through assessee into several designated banks. For instance, advance tax and self-assessment tax are furnished via assessee
- Tax deducted at source (TDS) through the income of the receiver
- The tax collected at source (TCS).
It is the constitutional responsibility of every individual earning income to calculate his income and furnish the taxes precisely.
What Would be the Relevant Tax Rates?
The rates of the income tax and corporate taxes are available in the Finance act passed via parliament every year. One could check his tax liability through the use of the free online tax calculator available at www.incometaxindia.gov.in.
What is the Method to Compute the Advance Tax and Furnished It?
- In case of all the taxpayers (other than the eligible assessees as referred to in sections 44ADand 44ADA):
- i) At least 15 per cent – On or before 15th June
- ii) At least 45 per cent – On or before 15th September
- iii) At least 75 per cent – On or before 15th December
- iv) At least 100 per cent –On or before 15th March
On the grounds of the expected tax liability of the year, the advance tax would get computed. The advance tax would be furnished in the instalments as mentioned below:
- For the eligible taxpayers as directed to in sections 44ADand 44ADA:100 per cent – On or before 15th March
Note: Any tax furnished on or prior to the 31st day of March will be treated as advance tax furnished in the identical fiscal year.
The deposit of advance tax would be performed via challan ITNS 280 by ticking the related column that is advance tax.
What is the Applicability of Tax on Regular Assessment and the Payment System?
Beneath the income tax act, every individual is liable to precisely calculate and furnish his left taxes. When the dept finds out that the shown taxes are reduced down and the resultant tax left, it needs measures for calculating the real tax amount that is required to get furnished. The same demand raised on the individual is known as the tax on the regular assessment. Within 30 days of the notice of demand, the tax on the regular assessment-400 needs to be furnished.
What Precaution Would be Needed During Tax Payment Challan Filing?
During tax payment, the below things should be mentioned effectively:
- Head of payment, e., Corporation Tax/Income-tax (other than companies) Amount and mode of payment of tax
- Amount and mode of payment of tax
- Type of payment [e., Advance tax/Self-assessment tax/Tax on regular assessment/Tax on Dividend/Tax on distributed Income to Unitholders/Surtax]
- Assessment year
- The unique identification number is called PAN [Permanent Account Number] and is allotted by the IT Department.
When the Taxes are Paid, am I Discharged From My Tax Responsibilities?
No, you are liable to ensure that the tax credits would be available in your tax credit statement and the TDS/TCS certificates obtained by you and that full particulars of the income and the tax payment are submitted to the income tax department in the form of the income return which would be furnished prior to the last date mentioned in this case.
Define Assessing Officer?
He or share is an officer of the income tax department, furnished the jurisdiction over a specific geographical area in a city or town. Via PRO or through the departmental website http://www.incometaxindia.gov.in about the officer administering the law where this can rely on your geographical jurisdiction or the type of income made through you. One would indeed do prior to section 2(7) of the income tax act.
What Do You Mean by the Term Income and Taxable Income?
An exempt income does not get levied to tax that is the income tax law provides a privilege from tax on these types of income. The incomes which are imposed to tax are said as taxable incomes.
Describe the Term Revenue Receipt and the Capital Receipt?
Receipts can be categorized into two types: A) Revenue receipt, and B) Capital receipt. The nature of revenue receipts is recurring for salary, profit made through the business, interest income, and others.
Capital receipts are isolated in nature such as receipts on the basis of the sale of the residential building, personal jewellery, and others.
I Am an Agriculturist Do I Need to pay the Tax on My Income?
The agricultural income would not come to tax. But when you have a non-agricultural income, then during the tax computation on the non-agricultural income, your agricultural income would come to account for the purpose of the rate. Towards the agricultural Income see section 2(IA) of the Income-tax Act.
Is There Any Need to Maintain any Records or proof of Earnings?
Towards every income source, you need to maintain the earning proof and the records mentioned beneath the income tax act. If there is no records are mentioned then you must maintain the reasonable records by which you could sustain the income claim.
Describe the Term Profession?
Utilization of skills and knowledge of a person is a term used for the profession. Vocation can also be considered a profession. For instance legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, artists, writers, and others.
Where Do the Books of Account of Business Keep and for What Time?
All the books of account and the concerned documents must be kept at the principal place of business, where the business or the profession is performed. These documents must be preserved for a min of six years from the finish of the related assessment year that is for a total of 7 fiscal years from the finish of the related year. But when the assessment would be reopened all the books of account along with the additional documents which are held and maintained during the period of reopening of the assessment must be carried on to be so kept and maintained till the assessment so reopened has been finished.
According to the NSDL Website, My Name is Not Updated?
In the case of a mismatch in information according to PAN along with the income tax portal, the taxpayer might furnish the complaint. Tap on the link https://www.incometaxindia.gov.in/Pages/tax-services/pan-grievances.aspx to see the steps for filing a complaint linked to PAN.
What is the Method to Check the Status of Aadhaar PAN Linking?
You are enabled to check your Aadhaar PAN linking status via the given mentioned link: https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar
Provide Me with an Email from the Income Tax Ombudsman?
See the mentioned below link to verify the list of email id of the income tax ombudsman: https://www.incometaxindia.gov.in/Pages/ombudsman/know-your-ombudsman.aspx
12 Additional FAQs on Income Tax Return Filers
Q.1 – What shall be the duration towards which the person’s income is considered for the income tax?
Income tax is imposed on the yearly income of an individual. The year beneath the income tax law is the duration that starts from 1st April and finishes on the 31st March of the succeeding calendar year. The income tax law categorized the year as (1) the former year and (2) the assessment year.
The income earned in a year is known as the previous year and the year in which the income gets taxed is known as the assessment year.
E.g., Income earned in the duration of 1st April 2021 to 31st March 2022 is treated as income of the former year 2021-22. The income of the former year 2021-22 would be imposed to tax in the subsequent year that is in the assessment year 2022-23.
Q.2 – What is the meaning of the term mentioned in Challan like Income-tax on companies and Income-tax other than companies.
The tax that needs to be furnished by the companies on their income is said to be corporate tax and for the payment of that in the challan, the same is cited as Income-tax on Companies (Corporation tax)-0020. The tax furnished by the non-corporate taxpayer is said as income tax and towards the payment of that in the challan, it is to be specified as the income tax excluding companies-0021.
Q.3 – What is the method to reveal that the government has obtained the amount deposited by me as taxes in the bank?
The NSDL website [http://www.tin-nsdl.com] delivers online services known as Challan Status Enquiry. Indeed you could check your tax credit by viewing your Form 26AS through your e-filing account at https://www.incometax.gov.in/iec/foportal
Form 26AS shall indeed show the credit of TDS/TCS in your account.
Q.4 – What to do when my tax payment particulars would not match with respect to my name on the website?
The reasons that no credit would show in your Form 26AS are:
- Deductor/collector would not furnish his TDS/TCS statement;
- You do not deliver PAN to the deductor/collector;
- You have given the wrong PAN to the deductor/collector;
- The deductor/collector has made an error while quoting your PAN in the TDS/TCS return;
- The deductor/collector has not quoted your PAN;
- The information of challan with respect to which your TDS/TCS was deposited might be quoted incorrectly inside the statement via deductor or incorrectly quoted in the challan details that the bank has uploaded.
To can request the deductor to improve these errors
- To furnish a TDS/TCS statement if it has not been furnished
- To amend the PAN via PAN correction statement in the TDS/TCS statement which would be previously uploaded when the same has made an error in the PAN quoted
- To file the correction statement when the deductor has furnished a TDS/TCS statement, accidentally failed to furnish your information or you had not provided your PAN to him prior to furnishing the TDS/TCS return.
Q.5 – Towards every person’s income the income tax is imposed. Under the law what comprises income?
Beneath the income tax law, the income has a very wide and inclusive term. If a salaried individual obtained all to obtain it via employer in cash, or the type is recognized as an income. For a businessman, his net profit would be stated as his income. in the form of Interest, Dividend, Commission, etc, the income might indeed flow via investments. Moreover, the income might be earned on the grounds of the sale of the capital assets such as buildings, gold, and others.
The income will be calculated under the related provision of the income tax act, of 1961 that specified the information to calculate the income imposed to tax beneath various income authorities.
Q.6 – Do all the receipts that are the capital and the revenue receipts imposed to tax?
Q.7 – As per the income tax law does my income from the animal husbandry recognize as an agricultural income?
No
Q.8 – Under the name of agriculturist do I need to maintain the earning proofs and the expenditures made?
If you only have the income from agriculture then you are suggested to maintain proof of your agricultural earnings or expenses
Q.9 – Am I able to claim any relief on the basis of double taxation if my income is taxed in India and abroad?
Yes, you could avail of relief for the income which is imposed to tax in India and abroad. Relief is either given under the law of double taxation avoidance agreement entered with that country via Govt of India or through permitting relief under section 91 of the act for the tax furnished in the foreign country.
Q.10 – What books of account are prescribed to be maintained by the individual taking the business or profession beneath the income tax act?
All these people are urged to maintain the book of account along with the additional documents as might enable the assessing officer to calculate his total income as per the law, if:
| Particulars | Individual or HUF | Any other taxpayer |
|---|---|---|
In the case of existing business or profession the income or the gross turnover in any one of the three former years is more than the below mentioned:
| Rs. 2,50,000 Rs. 25,00,000 | Rs. 1,20,000 Rs. 10,00,000 |
For the new business setup or profession, the income or gross turnover of the first former year seems to be more than the following:
| Rs.2,50,000 Rs.25,00,000 | Rs.1,20,000 Rs.10,00,000 |
Towards the companies, the books of account are mentioned beneath the companies act. Moreover, ICAI has mentioned several accounting standards which is needed to be complied with by the business entities concerning the maintenance of books of account by the professional who is involved in the mentioned profession needs to maintain specific books of accounts if the yearly receipts from the profession are more than Rs 1,50,000 in all the three years just before the previous year for the case of the new set up profession, his yearly receipts in the profession for that year seems to more than Rs 1,50,000.
Mentioned profession covers professions of legal, medical, engineering, architectural, accountancy, company secretary, technical consultancy, interior decoration, authorized representative, film artist, or information technology.
For more information about the provision concerning towards maintenance of books of account, you can see the provision of section 44AA read with Rule 6F of the income tax rules, 1962.
Q.11 – Does the Banker to whom I submitted the challan require me to submit proof of payment?
The bank must stamp and return the counter-foil of the income tax challan furnished by assessees. The bank stamp must include BSR (Bankers Serial number code), Challan Identification Number (CIN), and the payment date.
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