12 Simple (But Important) Things To Remember About Income Tax Return

12 Simple (But Important) Things To Remember About Income Tax Return

According to Income Tax Act 1961 According to section 139 (1) every person

  • Being a( Company or a firm )
  • Being a person ( other than a company or a firm) if his total income or the total income of any other person in respect of which he is assessable under this Act during the  previous year exceeded the maximum amount which is not chargeable to income-tax.

Normally individual Income Tax due date is 31st July every year. When the Nations Income Tax Payer need to file Income Tax Return every year.

For financial year 2019-20 the basic exemption limit is Rs. 2,50,000 below 60 year age

60 year to 80 year the basic exemption limit is Rs.3,00,000

80 year and above the basic exemption limit is Rs. 5,00,000

What is financial year ?

What is Assessment year?

Section 2 of The Income Tax Act, 1961 has defined Assessment Year and Previous Year as follows:- Section 2(9) defines Assessment Year as- Period starting from April 1 and ending on March 31 of the next year. Income of previous year of an assessee is taxed during the next following assessment year.

 

For example: Financial Year start from  1st April 2019 to 31st March 2020

Assessment year  of financial year 2019-20 will be  from 1st April 2020 to 31st March 2021.

 Income tax is liable to pay on Total income earned during  the previous year of relevant assessment.

Heads of income (Section-14)

Save as otherwise provided by this Act, all income shall for the purposes of charge of income tax and computation of total income be classified under the following heads of income-

  1. Salaries
  2. Income from house property
  3. Profit and gains  from business or profession
  4. Capital gains
  5. Income from other source

Therefore following   point keep in mind

1.Income Tax Slab

  1. Source of Income
  2. Chose the right Income Tax Form
  3. Check 26AS
  4. Form 16 or 16A
  5. All Bank account

7.Income of other person  tax able on behalf

  1. Computation of Tax Liability

9.Fill correct  information in Income Tax Return

10.Claim all deduction

  1. Due date

12.Right Jurisdiction

 

Conclusion: According the Income Tax Act 1961  assesse file income tax return  as self-declaration income or we can say voluntary basis. Income Tax Department assume the assesse filed Income Tax return in good faith.

 

 

 

 

 

 

 

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