- What is Income Tax?
- Calculating Taxable Income
- Tax Rates
- Who has to file Income Tax?
- Income Tax Returns or Forms (ITR)
- How to file Income Tax Returns?
- Time Limit for filing Tax Returns
- Filing Tax Returns
- Procedure for Electronically Filing Tax (Offline Filing)
- Notice issued by Income Tax Authorities
- Process for Electronically Filing Taxes – Online Filing
- Assessment/ITR Verification
- Deductions Reduced from Tax
- Right to Information – Tax
- Income exempt from Income Tax
- Financial Year and Assessment Year
- Procedure to file Revised Return
- Mandatory Linking of Aadhar/PAN for filing Returns
- Refund of Excess Tax
- Revised Return
- Penalties for not Filing Tax Returns
- Complaints and Grievances Regarding Income Tax
- Authorities under Income Tax Law
What is a TDS Certificate?
What is 26AS Form?
- Names of your tax deductors and the Tax Deduction Account Number (TAN) associated with them
- Tax refunds, if any, received in the particular financial year
- If you have sold immovable property in the financial year, details of the TDS deducted by the purchaser
- TDS deducted by the tenant on the payment of rent exceeding INR 50,000 (if applicable)
- Details of all high-value transactions (reported by the banking and financial institutions that they are conducted through)
What is direct and indirect tax?
Direct TaxDirect tax is a tax you pay on your income directly to the government. Direct Taxes are broadly classified as: Income Tax: Income tax is a tax levied by the Government of India on the income of every person. Corporate Tax: Tax paid by companies on the profits made from the business is known as corporate tax.
Indirect Taxes (Goods and Services Tax)Indirect tax is a tax levied on goods and services that is paid to the government. For instance, restaurants recover taxes from you on the food you purchase or a service you avail and pay this to the government. Most indirect taxes have been replaced in India by the Goods and services tax (GST), which has recently been introduced as a unified tax that has replaced all the indirect taxes that business owners have to deal with. Some indirect taxes apart from GST which are still collected include taxes on petroleum products, alcoholic drinks and electricity are separately collected by each state government.
Who is a resident in India according to tax law?
- Residence in India for a period amounting to 182 days or more in total.
- You have been in India for 365 days or more in any of the four years preceding the year of assessment, plus is living in India for 60 or more days in the current financial year.
- Similarly, every person is a resident of India with regard to the previous year, unless the management of his affairs is situated completely out of India.
- A person will be deemed ‘not ordinarily resident’ in India if he has not been residing in India for 9 out of 10 years preceding the year of assessment.
- the manager of the HUF has not been residing in India for 9 out of 10 years before the year of assessment, or
- In the preceding 7 years, the manager has been living in India for 729 days or less.
Is it mandatory to have a PAN card while filing taxes?
- Payment in cash to a hotel or restaurant against a bill/bills at any one time exceeding fifty thousand rupees.
- Payment in cash in connection with travel to any foreign country or payment for the purchase of any foreign currency at any one time exceeding fifty thousand rupees.
- Sale or purchase of any immovable property exceeding ten lakh rupees.
- Sale or purchase of goods or services of any nature exceeding two lakh rupees per transaction.
What is my constitutional duty to pay tax?
Which are the major taxes imposed by State Governments?
- Direct taxes: tax on income, wealth, corporates, capital gains.
- Indirect taxes: taxes that are levied on goods and services
- Tax on agricultural income(( Schedule VII, entry 46 under State List, Constitution))
- Tax on lands and buildings(( Schedule VII, entry 47 under State List, Constitution))
- Professional tax(( Schedule VII, entry 60 under State List, Constitution))
- State excise duty
- Tax on electricity(( Schedule VII, entry 53 under State List, Constitution))
- Excise duty on alcohol(( Schedule VII, entry 51 under State List, Constitution))
- Toll tax(( Schedule VII, entry 69 under State List, Constitution))
- VAT or value added tax
- Sales Tax
- Entertainment Tax
- Purchase Tax
- Service Tax
What is a firm?
What is a Keyman Insurance Policy?
- During the lifetime of such an employee, the premium on a Keyman Insurance Policy is paid by the employer.
- In case the employee dies untimely, the employer becomes the claimant of the insurance benefits.
- To qualify as a ‘keyman’, the employee should hold less than 51% shares in the company
What is a Hindu Undivided Family (HUF)?
- Members of the HUF must be ‘Hindu’ as defined under Hindu Law, which includes Sikhs, Jains, and Buddhists along with Hindus.
- Members should form a family, i.e. they should be related to each other through blood or marriage. Therefore, an HUF cannot be contractually created.
- The family should be ‘undivided’, i.e. it should be a joint Hindu family where partition has not been affected.
- Ancestral property
- Property acquired with the aid of ancestral property
- Property transferred by members of HUF
What is a Limited Liability Partnership?
What is an Association of Persons/Body of Individuals?
What is advance tax?
Calculating Advance TaxYou can calculate your advance tax on the income tax website.
Payment of Advance TaxAdvance tax payments have to be made in installments throughout the financial year, as per due dates provided by the Income Tax Department. It is usually paid in four installments(( Section 211, Income Tax Act, 1961.)) during each financial year, and the due date of each installment and the amount of such installment is specified below:
|Due date of installment
|On or before the 15th June
|Not less than fifteen percent of such advance tax.
|On or before the 15th September
|Not less than forty-five per cent of such advance tax, as reduced by the amount, if any, paid in the earlier installment.
|On or before the 15th December
|Not less than seventy-five per cent of such advance tax, as reduced by the amount or amounts, if any, paid in the earlier installment or installments.
|On or before the 15th March
|The whole amount of such advance tax, as reduced by the amount or amounts, if any, paid in the earlier installment or installments.
What is self-assessment tax?
What is presumptive taxation?
- Resident Individual
- Resident Hindu Undivided Family
- Resident Partnership Firm (except a Limited Liability Partnership Firm).
What happens when you file an incomplete tax return form?
Can the income of a minor be taxed?
- the child gets income from manual work or
- income from an activity involving application of the child’s skill, talent or specialised knowledge and experience.
If someone gifts me property, will this be taxed? Are gifts charged to tax?
- Without any consideration
- Of value more than INR 50, 000
- They have been received from specific relatives, i.e. parents, siblings, spouse
- Gift received in marriage, from relatives or in a will, regardless of value
- Gift received in contemplation of death of the payer
- Received from a local authority, fund, university, or medical institution
What are capital assets while calculating taxes?
- Consumables or raw materials, possessed by a taxpayer for the purpose of his business or profession.
- Movable property like clothes and furniture that count as personal effects of the taxpayer or his family, valuables like jewellery, archaeological collections and artworks are considered as capital assets.
- Agricultural land
- Gold bonds
- Special bearer bonds
- Gold deposit bond
- Short-term capital asset: An asset held for 36 months or less, right before it is transferred. For immovable property, this time limit is 24 months.(( Section 2(42A), Income Tax Act, 1961.))
What all components does the term ‘salary’ include while calculating tax?
- Any salary due from an employer (or former employer,) whether paid or not.
- Any salary paid or allowance made by the employer (or former employer or somebody on their behalf) though not due or before it was due to the taxpayer. For example, a salary paid in advance for a project.
- Arrears on salary
- Any annuity or pension
- Fees, commissions, profits
- Any advance of salary
- Provident Fund amount (on yearly basis)
- Basic income: It is the base remuneration which exists before any deduction or increment is made and is a fixed amount.
- Allowances: Above the basic income, an employee may be given monetary benefit to meet expenses in the form of allowances. These may be:
- Housing rent allowance
- Dearness allowance
- Medical or conveyance allowance.
- Provident Fund (PF): This is in the form of pension, where equal contributions from the employer and employee are collected in a PF fund throughout the latter’s service tenure. Currently, the Government of India makes the contribution on behalf of the employer for the first 3 years of service of a new employee, to boost employment in India.
- Gratuity: This is also a retirement benefit payable to those who have been employed by a company for at least 5 years. This is also deducted from the employee’s salary throughout their service tenure.
- Professional Tax: This tax is payable to the State Government for practising a certain profession. It is levied on the monthly salary.
Where can I go in person to file income tax returns?
What are the different kinds of taxes in India?
- Income Tax: Income tax is levied by the Government of India on the income of every person.(( The Income Tax Act, 1961.))
- Central Goods & Services Tax (CGST): CGST or Central Goods and Service Tax(( The Central Goods and Services Tax Act, 2017.)) is levied and collected by the central government on every supply of goods and services within the state.
- Customs Duty: Customs duty(( Ice Gate, e-commerce portal, Customs National Trade Portal, available at https://www.icegate.gov.in/; The Customs Tariff Act, 1975)) is applicable on all goods imported and a few goods exported out of the country. Duties levied on import of goods are termed as import duty while duties levied on exported goods are termed as export duty.
- Integrated Goods & Services Tax (IGST): IGST(( The Integrated Goods and Services Tax Act, 2017)) is tax levied on inter-state supply of goods. IGST will be applicable on any supply of goods and services in both cases of import into India and export from India.
What is the Finance Act? Why is it important in relation to tax?
- Part I: Income tax rates and surcharges on income tax
- Part II: Rates of TDS
- Part III: TDS on income from ‘salaries’
- Part IV: rules for calculating net agricultural income
What can be considered as charitable purposes while filing tax returns?