Essential Things to Know About Tax Returns

ITR is the tax form which taxpayers use to file information about the earned income and applicable tax. The selection of ITR forms depends on certain factors such as the source of income of a taxpayer, the amount of earned income as well as the category of a taxpayer.

What happens if you do not fill your ITR on time?

You will be penalized if you do not file the ITR by the due date. The amount of the penalty depends on your income and delay.

  • Salary-Based Income
  • This includes options like daily wages, pension, annuity etc. and you need to consult with an expert to get familiar with the legal terms.
  • Rental incomes
  • Earning rent from properties owned by an individual. In the case of a vacant property, a notional income will be included under this head.
  • Income from profession or business
  • It includes loss/profit from a job or business entity, salary, interest or bonus to a partner of any firm.
  • Income tax refund
  • For receiving the refund amount, you need to link your bank account to your PAN (permanent account number) and need to be re-validated on the e-filing portal of income tax.

 

Introducing the income tax calculator

Are you concerned about your income tax return and considering using income tax calculator? It is an online tool which is quite easy to use, helps you estimating the taxes based on your earnings or income.

Do you know how to use the income tax calculator?

First of all, you have to enter your birth details. Further ahead, you will need to enter detailed information about your income including

  • Basic salary
  • HRA
  • Profits from business
  • Interest income etc

Enter the details which are applicable to you. Once, you are done with this, enter the income from your house property. Moving on, you have to add all sorts of deductions that you have. Finally, you will be able calculating your income tax under the latest tax regimes as well as calculations.

 

Calculating income tax for salaried

Salary includes the basic salary, HRA, special allowance, transport allowance and other allowance. You do not require to spend tax for some elements of your wages like holiday travel grant, and telephone charges compensation etc. if you get live on rent and HRA, you can consider claiming exemption on HRA.

 

Details you require to refill your income tax return.

  • Necessary information including Adhar card, PAN card and current address
  • Details of all the bank accounts
  • Income proof such as current salary details
  • Proof of Income from investments such as savings bank account, FDs etc
  • Details of tax payment like TDS and advance tax payments

 

Does income tax calculator help calculating TDS?

Kindly note that  Income tax calculator is not invented for measuring the TDS that is an abbreviation of Tax Deducted at Source. However, you can determine the tax liability concerning the tax cycle. Once you get familiar with the legal terms related to tax you can get rid of all confusions, and it becomes easy to manage your finances. Only, you need to speak to an expert who helps you to learn the real facts.

 

Leave a Reply

Your email address will not be published. Required fields are marked *