Income tax in India is a Direct tax paid to the Government of India. You've probably noticed a few certificates like Form16, 16A, etc., which indicate the income tax (direct tax) paid.
Scope of Income Tax in India
Our Indian Constitution has given the power to the Income-tax department to charge Tax on all types of Income except Agriculture Income.
Income Tax payable by persons on Income
The Income earned by persons like you (as an individual), family head kartha like HUF, Companies like Private Limited, Firms like LLP, other types of Businesses like Societies, a local authority like BBMP, Municipality, etc. is liable to pay Tax on their Income.
Income Tax payable on the Net Income
Every year, the total Income earned from all the sources like Salary, Business, House rent, capital gain, interest, etc., minus all the Business related expenses (if you're a business), or if you're a salaried then as per form 16's Net Income after minus of your investments/ savings, etc. shall be considered as a Net Income for taxation purpose.
Income Tax applicability in India
Suppose your Net Income is above the basic limit (for 2022, the individual basic limit is Rs.2,50,000). The Tax payable liability will start per the slab rate given by Government.
Income Tax slab rate in India
Income tax changeability is based on the person's net Income and the applicable rate.
For the financial year 2021-22, the tax changeability is:
- The tax rate applicable to Individual/ Salaried person
- UptoRs. 5 Lac of Income NO tax
- If your Income is above Rs.5 Lac, then the tax rate given below
NO tax upto Rs.2.5 Lac
10% from Rs.2.5 Lac to 5 Lac
20% from Rs.5 Lac to 10 Lac
30% from Rs.10 Lac and above...
- The tax rate applicable to Business
- For Companies, based on the nature of Business, it varies.
The Service-oriented Company; the tax rate starts at 25% on net Income.
For the Manufacturing oriented Company; the tax rate starts at 15% of the net Income
Income tax is dynamic; it keeps changing yearly based on the yearly budget.
So, income tax is a complex system in India, and we shall have a proper tax consultant to advise on the matter diligently. Team IN Filings, Income tax services are friendly and professional. You can manage your tax system effectively faster and easier.
Income Tax return filing is entirely online. And it is a simple process and can be done by sitting at your home for easy with Team in filing, steps:
- Provide your form 16 income details by emailing us
- We will review and update the computation
- Once you confirm, we can file the income return online
- We will share your ITR filed acknowledgment.
Your ITR filing within the due date
Your ITR filing is to be done with Incometax.gov.in using the ITR login credentials; once we have details from you, we will arrange for the ITR within the due date.
The due date for Salaried employees individuals: 31st July.
The due date for Business: is 30th September.
Income Tax benefits
The person who pays his Tax and files a return with income tax has the benefits. A speedy loan from banks, easy process of foreign travel Visa, good financial credentials, recognized by incomed Tax as a complied person.
And also, income tax paid by you goes directly to the government kitty, it used for developments, defense systems, etc.; Tax payable by Business is only on the net profit; the taxable net profit arrives after offsetting all types of expenses, salary to directors, reimbursement, etc., which reduces the net taxable Income drastically and the result is minimal or lower Tax on the Company Net profit.
Minimum Requirement for Income tax in India:
If you're an Individual / Salaried person,
then you need to provide
Form 16 and Income tax login
Any other income like Interest from Bank, capital gain, etc.
If you're a Business
Your business Gst information,
Books and bank statements for review.
Income tax methodology to calculate
After the year-ending on 31st March, we need to prepare the reports
· Review your books, Gst, 26as, Bank, etc.
· Preparation of your Profit or Loss statement
· Balance sheet and Cash-flow report
· Net income computation from various heads of Income
· Payment of Tax, if any
· File the return with an income tax from India
Time duration of Income tax in India.
Income tax filings are online.
Once we receive all those documents and information from you, we need to prepare the various reports to file with the Income-tax portal, and this can be done within two days of the information received.
Proper income tax planning always helps you.
The Government gives many provisions and rules regarding income tax payments.
If you make the best use of the available tax provisions, you minimize the tax outgoing and comply with the income tax rules without getting a problem from the Income tax office.
We, Team IN Filings, provide end-to-end income tax services on Individuals, Salaried persons, Businesses, etc.
Please contact us If you're looking for any other services like:
Formation of Companies
Business setup in India
Tax planning and Tax audit for theCompany
Other License services for meeting all the compliances for your Business.
If you have any questions before starting the best business type of Company, please reach teamIN Filings to answer.
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