Income Tax Return filing
What is Income Tax
Income tax is tax levied on the income of a person by the Government of India as per the provisions contained in the Income Tax Act 1961. It is levied on income earned during the year starting from 1 April and ending 31st March.
PAN is the main identification Number for each ITR & Income Tax department has issued various ITR forms which is based on type of assesse (e.g. Individual, Firm, Company etc.).
Who is liable to pay income tax
Every person is liable to pay tax in India if his total income is more than the income notified by the government in the slab rates. Here, the definition of person includes :
· An Individual
· A Hindu Undivided Family (HUF)
· A Company
· A Firm
· An Association of Persons (AOP) or a Body of Individuals (BOI)
· A Local Authority
· Artificial Juridical Persons
Why to file Income-Tax Return
Filing of ITR is basically a legal obligation which everyone who falls under is required to comply with. But, it also helps in getting bank loans, visas, for claiming refund against excess income tax paid, as a proof of income certificate and most importantly for tax payer’s self-satisfaction.