Government of India imposes a tax on your income and the financial income generated by all entities within the country and under its jurisdiction. This becomes a key source of fund for the government to fuel its activities and initiate public welfare programmes.
Why does the government levy income tax? This helps them determine whether the businesses or individuals owe any tax to the government or are eligible for income tax refund. Also, the government needs money to run the country’s economy, so where will the money come from? It comes from the various taxation policies it imposes on the citizens.
The income tax filing and other activities related to this taxation policy are governed by the Income Tax Act, 1961.
Are You Eligible for An Income Tax? Does Your Income Fall Under the Set Bar?
The below table brings to you the income tax break up, if you earn a certain amount that exceeds the maximum limit, then you need to pay income tax to Government of India.
Income Tax Rate (percentage) (Applicable for the year 2014-15)
|Net income range (Individual resident (Age below 60 Yrs.) or any NRI / HUF / BOI /AOP / AJP)||Net income range (senior citizen)||Net income range (super senior citizen)||Net income range (any other person excluding companies, co-operatives)||Tax RatePercentage|
|INR 250,000||INR 300,000||INR 500,000||INR 200,000||NIL|
|INR 250,001–500,000||INR 300,001–500,000||–||INR 250,001–500,000||10|
|INR 500,001–1,000,000||INR 500,001–1,000,000||INR 500,001–1,000,000||INR 500,001–1,000,000||20|
|Above INR 1,000,000||Above INR 1,000,000||Above INR 1,000,000||Above INR 1,000,000||30|
*In the above table, senior citizens are those who are 60 years of age or above during the previous financial year.
*Super seniors are those who are 80 or more during the previous financial year
Residential status is another criteria which helps in determining whether the individual’s income is taxable or not.
We shall divide the income of a person in five heads to help you better understand:
- Income from salaries
- Income from house property
- Profits made from business/ property
- Capital gains and
- Income from other sources
All income received by you from your employer is taxed under ‘income from salaries.’
Now, we shall move onto filing e-turns for salaried individuals:
We shall provide you a step by step guide to help you file your tax returns online, in a hassle free manner. We understand this year’s deadline has passed, but you still can file income tax returns over the coming years by paying a late fee, in simple terms.
If you earn a hefty amount or as the government puts it, above 5 lakhs per annum, then you need to file your tax returns online this year. We bring to you a 3 step guide
REGISTER > UPLOAD > DONE
Follow these easy steps for e-filing your income tax return. At all times, keep your PAN card handy:
- Get yourself registered at www.incometaxindiaefiling.gov.in. Your PAN card number becomes your user ID, so make sure you enter the number correctly.
- Keep your Form26AS from previous year handy now. The TDS figures as per your current Form16 must tally with those mentioned in this form here. You might receive a notice from the IT department, in case you wrongly file your returns or if there is any discrepancy.
- Click on Income Tax Returns (Assessment Year 2013-14) from the ‘Download’ menu on the screen. If your exempt income exceeds INR 5,000, the appropriate form will be ITR-2. If the applicable form is ITR-1 or ITR 4S, you can complete the process on the portal itself, by using the ‘Quick e-file ITR’ link.
- Use Form16 to fill the details in the form downloaded Return Preparation Software or the excel sheet.
- The ‘Calculate Tax’ tab helps you make sure that the tax figures are rightly mentioned. If applicable, pay your income tax and enter the challan details in the tax return.
- ‘Validate’ i.e. confirm all the details in the excel sheet by clicking on this tab.
- Save the XML file you receive after you’ve completed the above step.
- Now, upload this XML file on the ‘Upload Return’ tab you see on the left of your screen. Say ‘Yes’ or ‘No’ for a digital signature as per availability.
You are just two steps away from filing the return.
- Once the website prompts that you’ve successfully filed your e-return, it will generate the ITR- Verification form which needs to be downloaded.
- This is the final leg, print the downloaded ITR-Verification form and sign it in blue ink, then post it to: Income-Tax Department-CPC , Post Bag No-1 , Electronic City Post Office, Bangalore – 560 100, Karnataka, within 120 days of filing your return online.