Income Tax Filing
What Is Income Tax?
Income tax is a type of tax that governments impose on income generated by businesses and individuals within their jurisdiction. By law, taxpayers must file an income tax return annually to determine their tax obligations.12 Income taxes are a source of revenue for governments. They are used to fund public services, pay government obligations, and provide goods for citizens.
Important Points
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Income tax is a type of tax that governments impose on income generated by businesses and individuals within their jurisdiction.
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Income tax is used to fund public services, pay government obligations, and provide goods for citizens.
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Personal income tax is a type of income tax that is levied on an individual's wages, salaries, and other types of income.
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Business income taxes apply to corporations, partnerships, small businesses, and people who are self-employed.
Benefits of filing Income Tax Returns
BUILD FINANCIAL DOCUMENTATION
Your Tax Return documents are proof of your financial investments and will be useful when you apply for a loan or insurance
AVOID LATE FEES UNDER 234F
TAX REFUND
You can claim tax refund; the earlier you file the sooner you will get the refund.
Avoid a maximum penalty of Rs 10,000, if your total income exceeds Rs 5 lakh.
AVOID TAX NOTICES
CARRY FORWARD YOUR LOSSES
QUICK VISA PROCESSING
Taxpayers are often served notices from the IT department for delayed & missed return submissions.
Most embassies and consulates require you to submit IT returns for the last 3 years.
You can carry forward losses against house property and depreciation.