Simply put, Income Tax refers to the direct tax paid on income, to the government, within a given financial year (April-March).
When the total income of a person from all sources of income exceeds the maximum amount permissible which is not chargeable to income-tax by the government, then that person is liable to file the Income Tax Return. Section 139(1) of the Income Tax Act was amended a few years back with a view to bring a larger number of persons in the tax net.
Now if any person satisfies any one of the following six conditions:
owns a vehicle
occupies a specified floor area of an immovable property
incurs expenditure for himself or for any other person on foreign-travel
subscribes to a telephone
subscribes to a Credit Card
is a Club member
then he/she is required to file an Income Tax Return.
The slabs to file Income Tax Returns vary, depending upon the total income earned during a year and the various exemptions for which the individual/entity is eligible for. In the case of an assessee earning income primarily from salary, the due date for filing the Income Tax Return is normally 31st July of the assessment year, unless extended by the Income Tax Department.
Individuals can file their Income Tax Returns by filling the requisite forms ITR 1, ITR2, ITR 3 or ITR 4.
The return form, along with copies of necessary supporting documents, has to be filed at the appropriate income tax office or special counters set up for this purpose, the details of which are available on the Income Tax Department website. It isalso mandatory to quote the Permanent Account Number (PAN) while filing the return.
Under Electronic Furnising of Return of Income Scheme, 2004, eligible assessees can file their returns of income electronically through persons authorised to act as e-return intermediaries. The intermediaries digitises the data of such returns and transmit the same electronically to the e-filing server of the Income Tax Department under the digital signatures.
View Tax Credit
The Indian income-tax department provides for registration of Permanent Account Number (PAN). The registration facilitates the taxpayer to view his Annual tax Statement (Form 26AS) online. It is a new system whereby the income-tax department officials would be able to view your tax (self assessment tax and TDS) status.
Form 26AS contains the following details:
Details of tax deducted on behalf of the taxpayer by deductors.
Details of tax collected on behalf of the taxpayer by collectors.
Advance tax/self assessment tax/regular assessment tax, etc. deposited by the taxpayers (PAN holders)
It is important to compare the details of TDS with the Annual tax Statement, before filing the return of income. The same would reduce the chances of filing of incorrect/omission of data.
Online Registration is a one time activity wherein you have to fill in & submit a PAN Registration form online. Following are the steps for PAN registration:
Click on ‘Online registration of PAN by PAN holder'
Thereafter, select PAN registration option from online services menu.
After entering all the details (PAN, User ID, Password, Contact details if any etc), PAN holder should click on 'Submit'.
On successful registration, an acknowledgement receipt will be displayed on screen.
Save and print this acknowledgement receipt.
This PAN registration request has to be authorised by a TIN Facilitation Center (TIN-FC). Authorisation means verification of Identity of a PAN Holder for the purpose of viewing Annual Tax Statement.
For getting PAN registration request authorised by a TIN FC, either
Select a TIN FC to visit you for personal verification.
In this case, select any TIN-FC from a list of TIN-FCs who offer this facility in the city provided in contact address.
Facility of selecting a TIN FC to visit you can be availed of only in those locations where a TIN-FC is present.
In this option, you will be prompted to enter your contact details in the fields provided on the online PAN registration form.
The above process has to be completed in 15 calendar days of registration, otherwise, the registration will cease to exist and you will have to register online again.
Form 26AS contains the following details: