Description

Personal Tax Filing

Income tax is a tax that is charged by government on the income of individuals and businesses. The tax is a revenue or we can say income for the government. Government uses this tax in developing the educational institutions, hospitals, infrastructure, subsidy to farmers, and many other basic needs. Personal income tax filing is also referred to as individual income tax. This type of  tax is charged on an individual’s stipends, salaries, and other types of income. This tax is usually a tax the state imposes. Because of immunities, deductions, and credits, most individuals do not pay taxes on all of their income.

Taxes are of two types

1. Corporate tax
2. Income Tax

Who should pay Income tax?

• Individuals
• Hindu undivided family
• Association of Persons
• Body of individuals
• Firms
• Companies

Types of Incomes

• Income from other resources – savings bank accounts, lotteries etc..
• Income from house property- House rent
• Income from capital gains- Sale of capital asset
• Income from profession
• Income from salary

Documents Required-

• Form 16 (Taxpayers having salary income)
•  Bank Statements
•  Details of Investments (Optional)
•  Details of Insurance & Loans (Optional)
•  PAN Copy (Optional)
•  Aadhaar Copy (Optional)

Penalty for Late Filing

• Between 1st August and 31st December – Rs.5000
• After 31st December – Rs.10,000
• Penalty if taxable income is less than Rs.5 lakhs – Rs.1000