One of the most essential requirements for every Indian citizen is filing of income tax returns. As per the law, every Indian citizen is required to pay income tax. In order to process tax payment it is essential that they get a PAN card. The PAN number will identify their returns when they file it. In case of employed or salaried individuals, the tax amount will be deducted by their employer at the source and they should show this when filing their returns. The last date for income tax filing is July 30th. Filing of tax returns can be done through electronic format or by visiting an auditor’s office or the income tax department office in their city of residence. In case of employed individuals, most people assume that they only have to pay tax on the amount that they receive as salary. Income tax is applicable on all sources of income, which means they have to pay tax on the accumulated income for the whole year. In order to do this, they must look into all their sources of income. This means not just their monthly salary amount, but also any interest that they get in their savings bank account. If they get income through rent, this is also considered for tax payment. In case they have a house which is rented, it is still mandatory by law to pay tax on notional rental income.
Those who have taken a loan to construct their home can make use of the loan interest payment as a means to deduct payable tax. In case they have received any funds from their friends or relatives in the form of money, the total sum of which exceeds Rs.50, 000 annually, tax has to be paid on that as well. The gift can be in the form of share, jewelry, bullion, art work etc, still tax has to be paid. What is exempted from income tax here is gifts that are received as part of marriage occasion or inheritance.
In order to reduce the amount that is to be paid as tax, it is essential to get the right information on areas where you can reduce the payable tax amount. In this regard, approaching an expert auditor is the best option. The auditor will analyze the various options for saving tax and they will take you through the entire filing process quickly and efficiently. They will also come up with a financial plan that is most suitable for your requirements. By taking up their advice, you will get the best possible information on filing tax returns and you will not just file the tax returns on time, but can save yourself the hassle of checking up means by which the income tax burden is reduced.
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