What Is an Income Tax Return?
An income tax return is a prepared document that you submit to the government on an annual basis. It contains information about your income, deductions, and tax liability. Filing your taxes is not a fun task to do, but it is an essential part of being a responsible citizen. You must file your income tax return within the time period specified by the government. Filing taxes help the government collect money that they can use for public services such as roads, schools, hospitals, and more.
Why Should We File Income Tax?
We should file income tax rebate because they help us pay for important public services like roads and schools. In addition, filing income taxes helps us pay for things that we might need in life, such as health care insurance. Or retirement savings plans. An income tax return or refund is a form that you have to file with the government every year to report your income and taxes that you paid. You will also need to pay any outstanding taxes due.
The main reason why you should file an income tax return is that it helps lower your overall tax liability for that year. This happens because most of us are eligible for various deductions. And exemptions that reduce our taxable amount, which means we pay a minimum tax on the money we earn. An income tax return or refund is a form that you file with the government to calculate. And pay your taxes. The government, in turn, uses this information to determine how much money they should take out of your paycheck for taxes every month.
You may have heard that it’s not required to file taxes if you don’t make enough. But what if you do make enough? Even if you don’t owe any money at the end of the year, it’s still important to file your taxes because:
1) You can get a refund if you paid too much in advance
2) You may qualify for deductions like childcare expenses or student loans
3) It gives the government more accurate information about how much money will be coming into its coffers.
4). Not filling out all of the required fields in the online form
5). Failing to link your PAN card with your bank account. Read More…
6). Not mentioning your PAN card number while depositing money at a bank or post office
Filing income tax return is a law of obligations of every citizen, even if they are not earning any income. Income tax is paid by the person who earns an income in the form of salary or business income. If you have any unpaid taxes, then you must file your income tax return on time to avoid penalties and interest charges. The due date for filing a form of an income tax return is 31st July every year for individuals.
Filing your ITR late: If you are not filing your ITR on time, you will have to pay a late fee of Rs. 1,000 or 100% of the tax due (whichever is lower). The same holds true if you file your ITR after the due date. But before 31st August of the assessment year. You can file your ITR either online or offline. Not filing an ITR at all: If you do not file an income tax return for the financial year, then you will be deem as having an income of 0.2 million for each month during which the period of assessment continues (i.e., from April 1st to March 31st). This amount will be treat as your taxable income for that particular month. And will include in your total taxable income for that year.
Not linking your PAN card with your ID card: If you don’t link them, then PAN will become invalid from July 1st, 2020 onwards. And it won’t be used anywhere in India after this deadline expires. To avoid this situation, link both cards by June 30th, 2020, so that they remain active forever!
The Income Tax Return (ITR) is a form that you fill out to report the amount of income you earned during the financial year. Filing an ITR is mandatory if you earn income from sources other than agriculture and business. Income tax is a compulsory payment. You have to pay it if your taxable income exceeds a certain limit. Your taxable income is the difference between your total income. And certain deductions that are allow under the Income Tax Act 1961. If you do not file your return, then you would be charged interest at one percent per month (12 percent per year). This interest amount would be added to the principal amount of tax due. And could become very large in case there’s a delay in filing returns for many years or even decades!