How to E-File Income Tax Return Online?by Viney Kumar Freelance Writer & blogger
As far as paying taxes goes, there are two types of taxes that are paid by individuals. These are known as direct taxes and indirect taxes. Direct taxes are paid to the government through the income of a person.
Indirect taxes are paid through a number of means by an individual either through service tax or product taxes. Value-added tax on clothes and other goods are also considered as a form of indirect taxes.
In a country like India, be it a resident or a non-resident each and every individual who earns income in one form or another is subjected to income tax. Be it earning income through working or pensions, or if someone has a savings account, they need to pay income tax to the government.
At the end of each financial year, individuals file income tax return and can get exempted from paying a certain amount of tax if they file in proof for certain amenities. This proof is in the form of written notes or bill receipts. Usually, House rent allowance and medical bills are exempted from tax forms by providing necessary bills.
Income Tax Rate
The Government of India has divided the income of individuals into brackets where each and every bracket has to pay a certain amount of tax to the government. The income tax is calculated on the annual income that an individual receives which includes the regular income along with bonuses. Those individuals who earn up to Rs.2,50,000 per year are exempted from paying taxes altogether.
Those individuals who earn above 2.5 lakh on an annual basis have to pay a certain amount of time from their income. The income tax slab changes according to each financial year. It is seen that the tax rates are increasing on an annual basis which clearly indicates to the economic rise of India as a whole.
Calculating Income Tax
Calculating one’s income tax is an easy process. The first thing to consider is the amount of money that an individual earns in the course of a year. According to the annual income that a person receives, they have to pay taxes accordingly. Income tax is a congregation of a number of taxes that individuals pay. Filing of income tax includes all the bills that an individual received throughout the year.
Filling Online Income Tax Return
Income tax in one way or another needs to be filed by the end of a financial year which is generally in the months of March and April of each and every year. There are a number of ways of going about the filing process for one’s income tax. The most recently launched way of filing one’s income tax is through online forms. Online income tax returns are processed faster as compare to those that are submitted by hand and given to the government’s office to be evaluated.
For anyone who is filing an online income tax return for themselves, the deadline for doing so is the 31st of July of every year. The date is extended from April because of the online process, which is long but much simpler compared to the hand-filing process. For anyone who is filing income tax, there are certain forms that need to be uploaded in order to support the income tax that they are filing. For this online income tax return, there are a set of documents that need to be uploaded all dependent on the rules for filing online income tax return.
The Government makes exceptions and reductions in tax in certain areas where the individual has paid for certain amenities that are of necessity. For example, tax deductions on home ownership, home renting, health, long-term savings and other investments are just an example where individuals can get back the income tax that they have paid the Government either through online income tax return or through claims that they have made individually or through their respective jobs.
Individuals who are working usually get an allowance known as HRA or House Rent Allowance that is given to them from their employer in order to pay the rent or pay for the home loan of the place that they are currently living in. This amount can also be paid to the parents of an employee as long as the house that they are living in belongs to his/her parents and the amount is reflected on their income tax every year. HRA allowance is a way in which income tax money can be easily saved and used for the profit of the individual itself.
Health is always exempted from tax. For an individual who wants to get tax returns on their medical bills, they can easily do so by providing bills that support medical claims throughout the course of a year. Bills for education like books and supplies can also be provided in order to get greater online income tax returns. The proof is in the bills. Some companies also give tax exemption on clothes and travel as well, making sure that individuals get a higher income tax return.
Created on Apr 2nd 2018 04:26. Viewed 856 times.
No comment, be the first to comment.