Income Tax

What is income tax?

Income tax is a direct tax on your income. It means a portion of your income is paid to the government. The government charges this amount for expenditure related to health, education , providing subsidy to agriculture , infrastructure etc. It is paid by an individual / HUF / any taxpayer depending on income levels or gains in a financial year. A company has to pay income tax irrespective of the level of income. The government passes laws prescribing the rate of taxation on your income from time to time.

How to pay income tax online?

You have to pay your taxes before filing your tax return. If you are a salaried individual, then most of your tax liability is deducted from your salary by your employer in the form of TDS and paid to the government on your behalf. In case you are liable to pay advance tax, then you have to pay 90% of it before the 31st of March every financial year. You can file your ITR once the financial year ends.

The window to file ITR is generally open till the 31st of July of the relevant assessment year. However, the due date to file ITR may get extended, and the Income Tax department will notify the same through various channels. It is always advisable to file your ITR within the due date. It’s worthwhile noting that you attract a late filing fee of Rs 5,000 on failing to file ITR within the due date of the assessment year.

How to save income tax?

There are many ways to save income tax by proper tax planning. Income Tax Act provides certain deductions and exemptions that can be claimed which will reduce your total taxable income and reduce tax outflow. Below are some of the most common deductions and exemptions:

• Deduction upto Rs 1.5 lakh under 80C – Investment in tax saving options like - investing in ELSS, LIC, mutual funds, deduction for tuition fees for children, deduction for principal amount of home loan, etc
• Additional deduction of Rs 50,000 above Rs 1.5 lakh in 80 CCC (1b) for contribution towards National pension schemes of the central government.
• 80D allows deduction of medical insurance premium paid for self, spouse, children (Rs. 25000 / 50,000) and dependent parents ( Rs. 25000 / 50,000)
• 80G allows deduction for donation made to recognized institutions and trusts as per specified limits.
• House rent allowance exemption allowed partially or fully under 10 (13A)
• Deduction for higher education loan under 80E
• Deduction for home loan paid under section 24 upto 2 lakhs for self occupied and full amount if rented property

How to get Income Tax Return copy online ?

• Log on to?incometaxindiaefiling.com?with credentials
• Click on View Returns/ Forms
• Selection an option as “Income tax returns” and relevant assessment year and click on submit
• A window displaying a list of ITR filed will open.
• Click on ITR-V acknowledgement number you want to download
• ITR V PDF file will open which can be downloaded.