Income Tax Return, also known as TDS Certificate, is mandatory to file annually in India if your total income (including your spouse’s income) exceeds the basic exemption limit of Rs. 2,50,000 per annum (Rs. 1,25,000 in case of Hindu Undivided Family). Your return must be filed by April 30th every year and failure to do so can attract penalty and interest charges that could reach up to Rs 50,000 as well as non-compliance charges of up to Rs 10,000 per quarter.
When to file your income tax return?
Your income tax return is typically filed on or before July 31st following the end of a financial year. The income tax return form to be filled out is called ITR – 1. For anyone under the age of 60 years, it is mandatory to file an income tax return every year. However for people over the age of 60 years, they can opt to stop filing their returns at any time. People with agricultural incomes are also exempt from paying taxes as long as they earn up to INR 2 lakhs per annum.
What documents are required for filing income tax returns?
1) Proof of Identity- PAN Card, Aadhaar Card, Passport, Driving License
2) Proof of Address- Utility Bill, Passport, Ration Card
3) Latest 3 months Bank Statement
4) Latest 3 months Salary Slip
5) Form 16 for last 2 years if salary is more than 10 lakhs per annum. If income exceeds 20 lakhs per annum then form 16A.
How much tax do I have to pay if I am an employee?
If you are an employee, the tax that you have to pay is calculated on the basis of the total salary earned for the year minus any deductions. For example, if you earn Rs. 1,00,000 for a financial year, then the amount that needs to be paid as taxes will be calculated based on 75% of this income. This would mean that out of Rs. 1,00,000 annual salary only Rs. 75,000 is taxable and the remaining Rs.
How much tax do I have to pay if I earn from other sources?
If you are an Indian citizen, you are liable to pay tax on the income generated from all sources. If you reside outside India, then only the income generated from sources within India is taxable. This includes any capital gains arising out of sale of assets located in India. The rate for general tax varies between 10% to 30%. For senior citizens, a reduced rate is applicable.
What documents are required by me at the time of my e filing?
All you need to do is file the TDS return electronically with the help of tax experts. They will e-file it for you on the day when all the required documents are submitted by you. You just need to provide the following documents:
1) Self-Attested copies of PAN card, Aadhaar card and bank account statements 2) Original copies of proofs like Passport, Driving License, Voter ID card 3) Bank account statement from last 6 months 4) Copy of Form 16 5) Copy of Form 26AS
How do I pay taxes online and get a refund?
You can pay taxes online using the income tax e-filing facility. The process is easy, fast and hassle-free. You will need to have an account with one of the following banks: Axis Bank, HDFC, ICICI Bank or Kotak Mahindra. You just log on to their respective websites to login and transact business. All transactions are carried out through electronic banking channels such as NEFT, RTGS or IMPS for which you will need a bank account.