Income tax is a tax levied by the Government of India on the income of every person. The Income Tax Act, 1961, covers legal provisions regarding the collection of income tax. It is mandatory for every person pays income tax including individuals, Hindu Undivided Family etc.
The Income Tax Department taxes you based on your income from the categories such as income from salaries, house property etc. Certain entities and income are also exempt from tax. In other words, the income tax will not be charged to such entities and incomes. Some examples include agricultural income, income for scholarships for higher education etc.
The topic also explains in detail the process of filing income tax returns. Initially, for filing an Income Tax Return (ITR), you need to find out what category of taxpayer you are. This involves calculating your taxable income based on standard tax rates. When it comes to actually file tax returns, you must most importantly ensure that you submit your returns within the specified dates/timeline by selecting the correct ITR Form that is applicable to you. Irrespective of how you file your ITR, you will have to verify it upon submission. Sometimes, you might have to correct certain details in your ITR Form, or claim a refund if you have paid excess tax. Accurate information and filing on time is essential while filing taxes.
Further, if you violate any laws related to income tax, you can be punished. Hence, if you are doubtful about any aspect of filing returns, it is advisable to seek help by contacting the income tax authorities. Read this topic to understand more about how to file tax returns, revised returns and concepts of income tax law that you need to be aware of!