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Need to know about income tax

Abubakker (Others) (60 Points)

21 June 2014

Dear sir,

I would like to know what is income tax for businessman / Working person.?

I need to know step by step guide coz i'm doing job from the past 1 year now i started my small business as well im from Tamil Nadu state..? I'm a fresher to Tax concept. Also i would like to know how to save my TAX, what is tax return. and some more important points that would be usefull for me now and future.

Thanks

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3 Replies

CA Saroj Kumar (Keen to learn something new every moment) (2588 Points)
Replied 21 June 2014

u need to explain sources of ur income and amount too...if possible attached excel sheet of income computation.

CA Raj Doshi (Practising CA) (8944 Points)
Replied 21 June 2014

All the items which you can think as your income are subject to the provisions of income tax act( profit from business , interest of fixed deposits , saving bank interest , salary , rental income, etc ) . If the total of all this exceeds the basic limit ( 2 lacs if you are aged less than 60 years ), then you have to pay income tax as per the slab rates. You can save tax by investing in PPF , by paying life insurance premiums, mediclaim. I am assuming you are doing business as a sole trader. You should maintain the accounts of your business from the start itself because one or the other year you will be required to file income tax return. Better to maintain accounts from the start. You should also maintain details of sales and purchase, and a bank book in excel which is your passbook which will serve as a record who gave payment and to whom you paid and against which bill .maintain this on an year on year basis. Your questions welcome. Email.: rajcdoshi @ gmail.com

Mihir (Wealth Manager) (5293 Points)
Replied 22 June 2014

Ask your employer to issue form 16 to you. Last date for filing IT return is 31st July. Create your account in income tax website using your PAN. Check 26AS.