Income Tax in Dehradun

What is Income Tax ?

Income tax is a type of tax charged by the government on the basic income earned by an individual or business during a financial year.  Income tax is a source of revenue for the government. The funds collected from this are used for public services, pay government obligations and provide goods and services for citizens.

Types of Tax ?

Tax is divided into two categories :

1. Direct Tax
2. Indirect Tax

Direct Tax : Direct tax is a type of tax in which the government directly imposes tax on the income of an individual or an organization.

Indirect Tax : Indirect tax is a type of tax in which tax is collected when the customer purchases a product. The tax is already included in the product’s price.

Types of Taxpayers ?

Taxpayers are classified into 3 categories :

1. Individual
2. Firms
3. Company

However, individuals are divided into two categories. First one is Resident individuals who have to pay tax on the basis of global income .i.e, income earned in India as well as Abroad. Second one is Non-resident individuals who have to pay the tax on the income that they earned in India only.

Resident individuals are again classified into 3 categories :

1. Individual’s age < 60 years.
2. 60>= Individual’s age <= 80.
3. Individual’s age > 80 years.

Types of Income :

Income heads are the sources of Income that people use to generate income. Every earning person falls in one or the other section of these categories.

Income Tax Department divides the income into five categories :

Income from salary –  people earning through salary and pension are taxable under this income head.

Income from house property – income earned through renting property is taxable under this income head.

Income from businesses and self-practicing professions – Income earned by self-employed people and also income earned by professionals such as CAs, doctors, lawyers who have a practice of their own is taxable under this income head.

Income from capital gains –  Income earned from capital assets such as mutual funds, shares is taxable under this Income Head.

Income from other sources – income earned from savings accounts interest, FDs is taxable under this income head. Assesse will have to pay Income tax online.

Important Factors to be considered before Filling ITR :

1. Choose the correct ITR form.
2. Choose a new tax regime or old tax regime according to your benefits.
3. Pre Filled ITR forms.
4. Verify the pre-paid taxes with Form 26AS.
5. Payment of balance taxes.
6. Consequences of non-filing of ITR by due date.
7. Change of employment during the year.
8. Reporting Exempt income.
9. Various disclosure requirements.

Income tax slabs :

Firms and companies have a fixed rate of tax but individuals’ pay tax on income slab they come under.

Old tax regime :

0 to 2.5 lakhs – no tax need to be paid.

2.5 lakhs to 5 lakhs – 5% of taxable income.

5 lakhs to 10 lakhs – 12,500 + 10% of the income exceeding 5 lakhs.

Above 10 lakhs – 1,12,500 + 30% of the income exceeding 10 lakhs.

New tax regime :

0 to 2.5 lakhs – no tax.

2.5 lakhs to 5 lakhs  – 5% of the income.

5 lakhs to 7.5 lakhs – 12,500 + 10% of the income exceeding 5 lakhs.

7.5 lakhs to 10 lakhs – 37,500 + 15% of the income exceeding 7.5 lakhs. 

10 lakhs to 12.5 lakhs – 75,000 + 20% of the income exceeding 10 lakhs.

12.5 lakhs to 15 lakhs – 1,25,000 + 25% of the income exceeding 12.5 lakhs.

Above 15 lakhs – 1,87,500 + 30% of the income exceeding 15 lakhs.

Documents required :

It is better to gather all the documents before filing ITR form in order to file income tax return online.

• Bank and post office saving account passbook
• Salary slips
• Aadhar card
• PAN card
• PPF account passbook
• Form 16
• Form-16A
• Form-16B
• Form-16C
• Form-26AS – it should have all the details about the taxes deposited against your PAN

1. TDS deducted by banks
2. TDS deducted by employer
3. TDS deducted by any organizations from payments that are made to you.
4. Any advance taxes deposited by you.
5. Self-assessment taxes paid by you.

•   Tax investment proofs.

How to File Income Tax return online?

Filling ITR is a longer procedure. There are so many steps to File ITR .

Step 1 : Log on to the portal of the income tax department (https://www.incometax.gov.in/iec/foportal/) for filing returns online. Register through the PAN Card and it will serve as a user ID.

Step 2 : Download the appropriate ITR Form.

Step 3 : Enter the correct details in Form 16.

Step 4 : Calculate all relevant tax details.

Step 5 : Confirm the above details and then submit return it .

Step 6 : Sign digitally. (If you don’t have a digital signature, you can skip this step).

Step 7 : Confirmation message opt on your screen.

Step 8 : e-verify the return through any one of these modes : 1) Net banking, 2)Aadhaar otp, 3)Bank ATM, 4)Bank Account Number, 5)Demat Account Number, 6)Registered mobile number and email id.