12 Simple 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-
- Income from house property
- Profit and gains from business or profession
- Capital gains
- Income from other source
Therefore following point keep in mind
1.Income Tax Slab
- Source of Income
- Chose the right Income Tax Form
- Check 26AS
- Form 16 or 16A
- All Bank account
7.Income of other person tax able on behalf
- Computation of Tax Liability
9.Fill correct information in Income Tax Return
10.Claim all deduction
- Due date
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.