FAQ's

Pensioners also come udner individuals and hence they might come under any of of the ITR1 , ITR2 , ITR3 , ITR4 . Please refer the FAQ for more details .

Income tax calculation for salary depends on various factors such as your residential status , your total income ,which income tax slab you are in ,standard deductions , Income Tax saving instruments , and many more . Please refer one of our posts on same to get more details : https://www.trewards.in/forum/tax-related-discussions/how-income-tax-is-calculated-in-india-a-comprehensive-guide Also use below calculator to get approx. tax liability : https://incometaxindia.gov.in/pages/tools/income-tax-calculator.aspx

An income tax return in India is a document that taxpayers file with the government to report their income, deductions, and tax liability. To understand the process and requirements in detail, visit the official Income Tax India website: www.incometaxindia.gov.in. It provides comprehensive information and resources on filing income tax returns.

The first Income-tax Act was introduced in February 1860 by Sir James Wilson (British India's first finance minister) . Post Indipendence , the Income Tax Act was Drafted in 1961 and it came into force on 1st April 1962 .

Yes, you can pay your income tax using a credit card. The government provides the option to make tax payments online through various authorized payment gateways, which include credit card payments as one of the convenient methods

In India, taxpayers are allowed to revise their income tax returns if there are errors or omissions. The specific rules and timeframes for revising returns may vary, so it's important for individuals to refer to the guidelines and deadlines set by the Income Tax Department of India for accurate and up-to-date information

Yes, income tax can be refunded in India. If you have paid more tax than your actual liability through TDS (Tax Deducted at Source) or advance tax, you are eligible for an income tax refund. You can claim a refund by filing an income tax return, and if the calculations show that you've overpaid, the excess amount will be refunded to you by the Income Tax Department. It's important to ensure accurate filing to receive a timely refund

Yes, income tax returns can be revised in India. Taxpayers can file a revised return if they discover errors or omissions in the original return. There's a time limit, and the process can be done online for e-filed returns. Accurate revisions are crucial to avoid potential scrutiny by the Income Tax Department. Please refer the website for more details : How to revise an ITR filed online

No, the Income Tax Department in India does not have the authority to arrest individuals. Their primary role is to administer and enforce tax laws, including the collection of taxes, conducting audits, and investigating tax evasion. If the department suspects tax evasion or other illegal activities, they may carry out investigations and take legal actions such as issuing notices, imposing penalties, and attaching assets, but they do not have the power to arrest individuals. Arrests in matters of tax evasion or fraud typically require the involvement of law enforcement agencies and the judicial process .

Income tax in India is levied on individuals and entities based on income categories and tax slabs. Deductions and exemptions are available, and returns must be filed on time. For detailed information and updates, visit the official Income Tax India website

The Income Tax Department in India sends notices via physical mail, email, the online portal, SMS, and mobile apps. To understand notice types and their implications, visit the official Income Tax India website: www.incometaxindia.gov.in. Responding promptly to notices is essential, and professional guidance can be valuable if required .

Please refer below table for the current tax slabs as of 2023 in India :

Income tax refunds in India are typically received within a few weeks to a few months after filing an income tax return, depending on the processing time by the Income Tax Department. For specific details and status updates on your refund, visit the official Income Tax India website: www.incometaxindia.gov.in.

As per a report by TimesOfIndia , below is the brekaup of indian budget :

You can pay income tax online in India through the efiling portal of Income Tax Department

The Income Tax Department in India provides various types of Income Tax Return (ITR) forms, each catering to different categories of taxpayers and income sources. As of my last knowledge update in September 2021, here are the commonly used ITR forms: ITR-1 (Sahaj): For individuals with income from salary, one house property, other sources (like interest income), and total income up to Rs. 50 lakh. ITR-2: For individuals and HUFs having income from more than one house property, capital gains, and foreign income/assets. ITR-3: For individuals and HUFs having income from business or profession. ITR-4 (Sugam): For individuals, HUFs, and firms (other than LLP) with presumptive income from business and profession. ITR-5: For LLPs (Limited Liability Partnerships), AOPs (Association of Persons), BOIs (Body of Individuals), and firms. ITR-6: For companies other than those claiming exemption under Section 11 (Income from property held for charitable or religious purposes). ITR-7: For individuals and companies required to furnish returns under Section 139(4A) or Section 139(4B) or Section 139(4C) or Section 139(4D). Please note that tax laws and ITR forms may change, and new forms may be introduced. It's crucial to use the appropriate form based on your income sources and consult the Income Tax Department's official website or a tax professional for the latest information and guidance on choosing the correct ITR form

This depends on lot of factors . Please refer the article from businesstoday which seems to have covered some basic use cases and well explained .

Please refer the FAQ link for same Different Type of ITR forms

You have to fill ITR1 , ITR2 ,ITR3 ,ITR4 . For more details on this refer to the FAQ

Non-Resident Indians (NRIs) have different income tax filing requirements and use specific Income Tax Return (ITR) forms in India based on their income sources. The ITR form to be filed by NRIs depends on their income and residential status. It's advisable to consult with a tax professional or refer to the official Income Tax India website for the latest guidance and eligibility criteria for NRIs.

Form 10BB, a crucial requirement under the Income Tax Act, is the obligatory submission for entities like charitable trusts, educational institutions, hospitals, and medical organizations. It is specifically designed for those entities that prioritize charitable objectives over profit generation. Filing this form is imperative to become eligible for deductions as per the provisions of Section 10(23C) of the Income Tax Act, 1961. Under Section 10(23C) of the Income Tax Act, both government and non-government universities and educational institutions may qualify for substantial tax exemptions. However, it's vital that these institutions are committed solely to educational purposes without any profit motive. Government-owned educational institutions enjoy complete exemption, whereas non-government educational institutions with an annual income of up to INR 5 crores also benefit from exemptions on specific taxes. Those educational institutions with annual income exceeding INR 5 crores can still claim exemptions, provided they meet specific approval criteria. Form 10BB functions as a comprehensive repository of essential financial information, encompassing details related to income, expenses, assets, and liabilities of the trust or educational institution. This form is submitted in the form of an audit report, a process managed by a chartered accountant who conducts a thorough audit of the entity's financial records for the given fiscal year.

Section 115BAB of the Income Tax Act, 1961, in India pertains to the tax provisions for newly incorporated domestic manufacturing companies. This section was introduced to promote domestic manufacturing and enhance the "Make in India" initiative. Key provisions of Section 115BAB include: Lower Tax Rate: Companies that meet the specified conditions and are engaged in manufacturing or production of any article or thing are eligible for a reduced corporate income tax rate. The applicable rate is 15% on their total income. Exemption from Minimum Alternate Tax (MAT): Such companies are not subject to Minimum Alternate Tax (MAT) under Section 115JB. This means they are not required to pay MAT even if their tax liability under normal provisions is lower due to deductions or incentives. Conditions for Eligibility: To be eligible for the benefits under Section 115BAB, a company must meet certain conditions. These include being incorporated on or after October 1, 2019, and commencing manufacturing or production before the end of March 31, 2023. Additionally, the company should not claim deductions or incentives under certain provisions, and its total income should be computed without exemptions under Section 10AA (Special Economic Zones). Option to Choose: Companies eligible under this section have the option to choose whether they want to be taxed under the concessional tax regime or continue with the existing tax provisions. They can evaluate their tax liability under both options and select the one that is more beneficial for them. It's important to note that while Section 115BAB provides a lower tax rate, companies must carefully assess their individual circumstances and the potential impact on their tax liability before making a decision. Tax laws can change, and it's advisable to consult with a tax professional for accurate and up-to-date guidance on tax planning and compliance.

Section 44ADA of the Income Tax Act, 1961, in India is a special provision for the presumptive taxation of certain professionals. This section simplifies the tax computation process for professionals by allowing them to declare a presumptive income based on their gross receipts. Here are the key points regarding Section 44ADA: Applicability: Section 44ADA applies to specified professionals, including legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, and certain other professionals. To be eligible, the total gross receipts of the professional should not exceed Rs. 50 lakhs in a financial year. Presumptive Income: Under this provision, professionals can declare a presumptive income of 50% of their gross receipts as taxable income. In other words, if a professional's gross receipts are Rs. 10 lakhs, they can declare a taxable income of Rs. 5 lakhs (50% of gross receipts) without maintaining detailed books of accounts. Maintenance of Books of Accounts: Professionals opting for Section 44ADA are not required to maintain extensive books of accounts and documents related to their professional income. This simplifies the compliance process. Deductions: Unlike the regular taxation method, where professionals can claim various deductions for business expenses, Section 44ADA does not allow deductions for any expenses. The presumptive income of 50% is considered as the income, and no further deductions are allowed. Advance Tax: Professionals under Section 44ADA are required to pay advance tax by the due dates specified for advance tax payments. Audit Requirement: If the professional's presumptive income is lower than the minimum income prescribed under the Income Tax Act (currently Rs. 2.5 lakhs for the assessment year 2022-23), they are not required to get their accounts audited. However, if the presumptive income exceeds this threshold, they will be subject to tax audit requirements.

Section 92E of the Income Tax Act, 1961 in India mandates specified persons involved in international transactions to maintain contemporaneous transfer pricing documentation and obtain an Accountant's Report from a chartered accountant. This report must be filed with the Income Tax Department, ensuring compliance with transfer pricing regulations. Failure to do so can result in penalties. The aim of this section is to ensure that transactions between related parties or entities in different tax jurisdictions are conducted at arm's length prices, preventing profit shifting and tax evasion

80 is the most famous tax saving investment for taxpayers . You can do a maximum deduction of 1,50,000 Rs . For ex : PPF/SPF/RPF, Life Insurance Premiums, principal sum of a home loan, SSY, NSC, SCSS, Investment in Equity Linked Saving Schemes etc are covered under this .

This is part of overall 80C deductions . 80CCC is specifically for payments made towards pension funds .

Again part of 80C , any payments made towards Atal pension Yojna or any other government pension yojna's .

These are investments under Nation Pension Scheme - NPS . The maximum deduction under this category is 50,000 which is over and above 80C deductions i.e 1,50,000 .

These are Interests on saving accounts to be claimed by Individual and HUF . The Max deduction allowed here is Rs 10,000 .

These are interests on savings accounts for Resident senior citizens i.e age 60 or more . The Maximum deductions allowed under this section is Rs 50,000 . The interests income can be from banks , post office , any FD's etc .

Any individul who is not recieving HRA but living on Rent . Please refer below conditions to calculate (whichever fits in ) 1: Monthly rental limit of Rs 5000 every month i.e. 60,000 per annum. 2: The yearly rent amount minus 10% of the taxpayer's adjusted total income 3: 25% of the adjusted total income for a year.

These are used for deduction in Medical Premium's paid . As an individual or HUF you can claim a deducation of Rs.25000 on insurance for self , spouse and dependent child . You can also claim addition of Rs 25000 if your parents are <60yrs of age or around Rs 50000 if they are >60yrs . If both taxpayer and parents are >60yrs ,then the maximum deductions are allowed are Rs 1,00,000 . Please refer income tax website for more details .

These are deduction for Medical treatment of dependts with disability . For Normal Disability (40%-79%) Rs 75000 can be claimed .For Severe Disability (>80%) Rs 1,25,000 can be claimed .

These are deductions you can claim for any medical treatment taken for self or dependent . For <60yrs - Amout paid or Rs 40,000 whichever is less & >60yrs - Amount paid or 1,00,000 whichever is less .

These are deduction you can claim on Interest on education loan taken . This is available for a max of 8 yrs (from the 1st yr of interest being paid) .

These are the deductions an individual can claim if they are suffering from physical disability , Rs 75,000 . The amount is Rs 1,25,000 for any severe disability .

Contribution by companies to political parties . The deduction is the amount contributed .

Contribution by individuals to political parties . The deduction is the amount contributed .