Personal Tax Filling
Brief Overview of Income Tax
Income Tax as the name suggests is Tax on Income earned during the previous year. As per the Income Tax Act 1961, one has to mandatorily file an ITR, if his/her income exceeds the basic exemption limit which is Rs 2,50,000 Per Annum.
Filing Your ITR has never been so easy, Simply upload a few relevant documents, make the online payment and just sit back and relax, Our experienced team of tax experts will do the rest.
Your Income earned during the year is categorized under 5 major heads of Income under the Income Tax Act i.e. 1. Salary Income, 2. House Property Income (Rental Income), 3. Income from your Business/Profession, 4. Capital Gains (Arising on sale of any capital asset like gold, silver, Shares, House Property Sale etc), 5. All other incomes like Interest Income, Income from Fantasy Sports, Commission Income etc are covered under the head “Income from Other Sources.”
Benefits of Filing Your ITR:- a)Govt Proof of Income:-Besides the mandatory obligation to file an ITR, it also becomes the Govt. Proof of your Income. b)Availing Loans:- Taking Loans for any purpose becomes easier(House Property Loan, Vehicle Loan, Personal Loan, Business Loan etc) c)Tax Refunds:- Certain Incomes requires tax deduction at source, In that case, ITR filing becomes mandatory to claim any Tax Refunds. d)Govt. Contracts:- To be eligible for Govt. Contracts for your work, You would need to submit Income Proof i.e. ITR. e)Higher Insurance Cover:- Regular ITR Filing also makes you eligible for higher Insurance Covers. f)VISA Requirement:- The Immigration Authorities requires you to submit ITR for last 2-3 years when you apply for VISA. g)Claiming Business Losses:- You need to file your ITR in order to claim losses of businesses/Professions for adjustments against profits in coming years.
Tax Deductions Under Income Tax Act 1961:- Besides the Basic Exemption Limit of Rs 2.5 Lakhs, the Govt. also provides tax deduction on certain Investment Products:- Deductions U/s 80C :- Life Insurance Premium :- Tax Saver Fixed Deposits (Tenure 5 Years or More) :- Tax Saving Mutual Funds (ELSS) :- Deposits in PPF Account (Public Provident Fund) :- Deposits in SSY Account (Sukanya Samriddhi Yojna) :- GPF/EPF (Provident Funds) :- NPS (National Pension System)- U/s 80 CCD The Govt. also provides tax deductions for Certain Expenditures:- :- Medical Insurance Premium (Commonly Known as Mediclaim)-U/s 80D :- Housing Loan Principal- U/s 80C :- Interest Paid on Education Loans for Higher Studies- U/s 80E :- Donations Paid to Charitable Trusts/Organisations – U/s 80G
Conclusion:- One must file the yearly Income Tax Return even if the income is below the taxable limits, since it serves various other purposes.