What is meant by Income Tax Return?
Income Tax Return is a document file with the apex body of Income tax i.e. Central Board of Income Tax Department for reporting of their Income from salary, House property, capital gain, Profit and losses from Business and Professional, Other Sources Etc. and mentioning other deduction for Calculating Income Tax Liability. Different forms are prescribed for filing of returns for different ‘status’ and ‘Nature of Income’.
Basis of filing Income Tax Return?
Every assessee whose total income before allowing deduction under chapter VI-A of the Income Tax Act,1961 as per amendments exceed the maximum exemption limit i.e. Rs 2,50,000, then it is compulsory to file their income tax return. There are 5 Major head under Income tax Act, 1961.
- Income from Salary.
- Income from House Property.
- Income from Capital Gain.
- Profit or Gains of Business of Profession.
- Income from Other Sources.
This above Sources of Income will decide the type of ITR Form to be used by the assessee.
Criteria for selecting your Income Tax Return?
There are various form that are to be filed with income tax authority before the due date of the return and due date for filing income tax return for the Assessment year 2015-16 is extended up to 31st August 2015,So that assessee have some more time for filing their Income Tax Return. Each form has some criteria for reporting income of an assessee and these are
1. ITR-1: An Individual having Income from salary / Pension, Income from ‘Only 1’ House
Property (Excluding Cases where loss is brought forward from P.Y) and Income from Other (Excluding income from Winning from Lotteries and horse races).
2. ITR-2: An Individual / HUF having income from Salary/Pension, Income from ‘more than 1’ House Property, Income from Other Sources and Income from Capital Gain.
3. ITR-2A: An Individual / HUF having income from Salary / Pension, Income from House property
(New) Income from Other Sources ( Incl. Income from Winning from Lotteries and Horse Race) and not having any income from Capital Gain, Income from Business or Professional, Income from any Source Outside India.
3. ITR - 3: An Individual / HUF who is a Partner in a firm and not having any Income from Business and Professional.
4. ITR - 4 : An Individual / HUF having income from Profit or Gains from Business / Professional.
5. ITR- 4S: An Individual / HUF having Presumptive basis income from Profit or Gains from Business / Professional Such as Return U/s 44 AD (8% Income on turnover).
6. ITR- 5: It is to be used by a partnership firm, Association of Person (AOP), Body of Individual (BOI), Artificial Judicial Peron (AJP), Co-Operative Society or Local Authority Etc.
7. ITR-6: It is to be used by a Company.
8. ITR-7: It is to be used by Trusts and Non- Profit Organization.
What are the requirements for furnishing Income tax Return?
In Return, various types of Details are to be furnishing while filing income Tax Return and they are following:
1. Furnish Aadhar Card Number in the Income Tax Return but it is not mandatory.
2. Details of all the Saving and Current Bank Account with Bank Name, IFSC Code, Name of Joint Holder if any, Account Number, Type of Account Etc. But Details of dormant accounts which have not been operational during the last three years are not required to be furnished.
3. In the Case of an assessee having any asset in the foreign Country, then it is mandatory to furnish Account Number of Foreign Bank, details of income from financial Interest in any entity outside India.
4. Details of foreign travelling shall not be reported (Except Passport No.)
5. Date of Formation by HUF is required to be reported.
6. If Taxpayer has agriculture income the return shall be filed in ITR-2 or ITR-2A as the case may be.
7. Every taxpayer has mandatory to file return of income by electronically so as to Claim refund of tax from the department.
8. Reporting of amount that has remained unutilized in capital Gain.
9. Details of Income taxable under DTAA.
10. Agricultural Income shown separately in the form of Gross receipt less expenses instead of net income and unabsorbed agriculture loss of previous 8 assessment year.
11. Distinction between heavy and light good Carriages removed and Computed at a uniform rate of Rs 7500 P.M for any goods Carriage.
What is tax Calculator and it’s uses?
CBDT has been introduced online tax calculator to verify the tax liability based on computer for filing income tax return of the assessment year 2015-16. The “Tax Calculator” is an Online computer- based programme hosted on the official website of Income tax department and It helps to assessee for knowing their tax liability. This Tax Calculator is Computed the tax liability according to the new announcement made by finance minister in respect to tax rate in his latest budget. This Facility can be used by any taxpayer such individuals, HUF, Company or any other entity for calculating their Tax Liability. But income tax department said with word of caution that assessee should not rely on it as complicated cases of ITR have various requirement which may not be address. This calculator approximately gives an answer as per provisions contained in the Relevant Acts, Rule. Etc. The calculator has been calibrated to compute the total tax liability of an assessee under any head of the Incomes.
Steps required for calculating tax liability on tax calculator?
Following are the steps required to calculate tax liability on tax calculator.
1. Firstly select the assessment year and Status of an Assessee.
2. Calculates taxable Income by computing all sources such as Income from Salary, Profit or Gains from Business or Professional (Enter Only Profit), Agriculture Income and other etc.
3. Calculates Income chargeable at special rate for computing the Taxable Income.
4. Calculates deduction available from the taxable income under various sections of Income tax Act.
5. Enter Due date and current for filing of Income tax return.
6. Enter amount of TDS, TCS, MAT (AMT).
7. Then Press Calculate Button.
By this way we are computing their tax liability.
Go further and try the tax Calculator features!!