About Income Tax:
An income tax is a tax imposed on individuals or entities in respect of the income or profits earned by them. The earnings may be both actual and notional. The Government of India decides the rate of income tax as well as income tax slabs on which individuals are taxed.
Taxation rates may vary by type or characteristics of the taxpayer and the type of income.
What is ITR
Income Tax Return is the form in which assessee files information about his/her Income and tax thereon to Income Tax Department. The department has notified 7 various forms i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7 till date.Every taxpayer should file his ITR on or before the specified due date. The applicability of ITR forms varies depending on the sources of income of the taxpayer, the amount of the income earned and the category the taxpayer like individuals, HUF, company, etc. When you file a belated return, you are not allowed to carry forward certain losses.
Who should file ITR
It is mandatory to file income tax returns (ITR) in India if any of the conditions mentioned below are applicable to you:
If your gross annual income is more than the basic exemption limit.
If the taxpayer is a company or a firm, irrespective of profit or loss.
If you want to claim an income tax refund from the department.
If you wish to apply for visa or a loan.
Etc.
Due date for ITR
| Sr no | Taxpayer | Due date |
|---|---|---|
| 1 | Company | 30th September |
| 2 | A person who is liable for audit under either Income tax act or any other act | 31st October |
| 3 | A working Partner of firm whose accounts are audited | 31st October |
| 4 | All other Persons | 31st July |
Late fee
| Particulars | Amount |
|---|---|
| Where Total Income is up to Rs 5 Lakhs | 1,000 |
| Where Total Income is more than 5 Lakhs and return is filed upto 31st December | 5,000 |
| Where Total Income is more than 5 Lakhs and return is filed after 31st December but on or before 31st March of next financial year | 10,000 |
Advance Tax
As the name suggests, advance tax refers to paying a part of your taxes before the end of the financial year. Also called 'pay-as-you-earn' scheme, advance tax is the income tax payable if your tax liability is more than Rs 10,000 in a financial year. These payments have to be made in instalments as per due dates provided by the income tax department.
Due dates for Advance Tax
| Due Date | Advance Tax Payable |
|---|---|
| On or before 15th June | 15% of advance tax |
| On or before 15th September | 45% of advance tax less advance tax already paid |
| On or before 15th December | 75% of advance tax less advance tax already paid |
| On or before 15th March | 100% of advance tax less advance tax already paid |
