20/05/2018
Know about your Income Tax returns!!!
First of all, we should know what is Income Tax. Income tax is the tax that one( individuals, not companies) has to pay to the govt. on their earnings above the prescribed limit.
Who will be covered under this?
Individuals having an income of more than 2.5 lakhs per annum ( at present slab) and senior citizens having an income above 3.00 lakhs.
Four types of IT forms available for the individuals.
ITR1 : This form is for the individuals who are earning salary. Only resident Indians Upto rs.50.00 lakhs of income can file ITR 1 form. Non- resident Indians cannot file this form for reporting their income.
ITR 2 : This form is for the individuals who are not earning income through their business or profession. That means individuals who are earning income from the asset they have invested can file this form. This form is also for the non-resident indians.
Who cannot file this form:
Those who are earning income from business or profession. Earlier partners of the firm who can file this form can no longer do so.
ITR 3 : This form is for individuals and HUFs who earn income through their business or profession.
ITR 4 : This form is for the people who will pay their presumptive taxes.
Presumtives taxes: Those who declare their income based on their turnover and pay taxes accordingly.
What changes happened ?
From this year onwards, you cannot file IT filing for previous to previous year ie. Now, you can't file for the financial year 2016-17. Moreover, if you're not filing last year IT filing by July of this year, you will have to pay a penalty of rs.5000/- by Dec of this year and rs.10000/- after December.
Pay your taxes on time