If you are a working person then one of your major concerns will be about the tax return. Tax is the amount which is paid by the citizen of a country for the development of the country. There are lots of people who fail to understand the importance of tax and hence they fail to file their returns on time.
PAN Number is now COMPULSORY for NRIs, PIOs & OCIs to File Income Tax Return in India.
Learn more about a PAN: www.PanCard.co.uk
This is the reason why they fall into trouble. You must always remember that failing to pay taxes at the correct point of time is offensive. So you need to be very careful about the fact and must always act to be a good citizen.
There are people who do not have an idea about how to file taxes in India. It is not only important to learn how to file the tax but it is also important to learn when to file the tax. Form 16 is one of the most essential forms which help you file your return.
But before that you first of all need to find out whether you need to file your return. You need to find out certain information about the income tax. First of all you need to be sure about your income and then you must find out the tax rate.
It is always very important to calculate your tax in the proper manner. First of all you need to add all your income. Your income can either be from a single source or even from multiple sources.
After you add your income you need to subtract the different kinds of tax deductions which are available to you from it. If you can find out the net taxable income then you can use the rate table which will help you calculate your tax liability. Things have almost remained the same since July 2009.
There has been only one major difference in filing you tax return since July 2009. The change is actually the introduction of the Saral II for which is also known as ITR1 form. Its application has also been broadened.
Previously people who got their income from rent had to use the ITR2 of 8 long pages. They could shift to the ITR1 after July 2009 which is much easier. You will happy to learn how the government is trying to make things easier for each and every taxpayer.
The government is also trying its best to use technology to the maximum extent so that it can get rid of all the problems that are faced while paying the tax or dealing with the tax department.
The government has also introduced a scheme where the taxpayer is refunded the excess tax that is paid by him within a few weeks after the return is filed. The taxpayer gets the return directly to the bank account. These days you can even check your tax returns as well as refunds online.
You just need to log on to incometaxindia.gov.in and you will get lots of information about the taxes in India. The use of technology is being increases so that people do not face any kind of problems regarding their tax returns.
Other than this, you also get the taxpayers information booklet which has information about the tax. While filing you tax you need to be careful so that you do not make mistakes. These days you can file you tax return on the internet which also has the tax calculator for you.
You must also be clear about the other sources of income you have. Stay away from mistakes like giving incorrect pan, double deduction, and incomplete air; ignore tax free income and treating TDS as tax.