Income Tax is a tax levied on the total income of the previous year of every person. A person includes an individual, Hindu Undivided family (HUF), Firm, Company, Association of Persons (AOP), Body of Individuals (BOI) etc. Income Tax is considered as direct tax as it is levied directly on the income of the person.
Income Tax return is the format in which the assessee is required to furnish information relating to his total income and tax payable. According to Sec 139(1) of the Income Tax act, the following persons are required to file Income Tax returns
1. Firms and Companies
2. Persons other than a company or firm whose total income in India exceeds the basic exemption limit.
3. A resident other than not ordinarily resident who at ay time during the previous year
The income tax returns are required to be filed within due date. Due dates for different category of tax payers as described
Previous Year: It means the financial year immediately preceding the assessment year. The income earned during the previous year is taxable in the assessment year.
Assessment Year: This means a period of 12 months commencing on 1 st April every year. The year in which income is earned is previous year and such income is taxable in the immediately following year i.e, assessment year.
For Example, income earned in the previous year (01/04/2017 to 31/03/2018) is taxable in assessment year.
|Income||Rate of Tax|
|0 – Rs 2,50,000||Nil|
|Rs 2,50,001 -Rs 5,00,000||5%|
|Rs 5,00,001 -Rs 10,00,000||20%|
|Above Rs 10,00,000||30%|
|Income||Rate of Tax|
|0-Rs 10,000||10% of total income|
|Rs 10,001 – Rs 20,000||20% of total income|
|Above Rs 20,001||30% of total income|
The following are the benefits in filing Income Tax returns
All the persons should file Income Tax return within due date. Non-filing of income tax return has adverse consequences
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