Income tax is something that consumers need to pay to the government to fund various state services. Consumers may be used to paying tax at the end of the year when they file their tax returns. But what they don’t realize is that they are also subjected to paying taxes throughout the year.
The tax laws in India are confusing, and they change every year. It’s not uncommon for people to make mistakes in filing taxes, and if you are one of them, it doesn’t help that you have to take out time to visit tax offices or worry about penalty fees. And to get one on one sessions with an expert and know more about your income tax sign up with GETO.
Here are some of the frequently asked about Income tax
What is Income tax?
Income tax is a tax on income and is levied and collected by the government. Tax on income may be paid by any person who is earning income from any source. In India income tax is a levy on the assessment of income. Tax is usually deducted at the source by the paying agency on payment of income to any person.
How much time it takes to get income tax refund in India ?
After you have filed the income tax returns and verified the same, the income tax refund time taken is usually 20–45 days after ITR has been processed.
What is Standard deduction in income tax?
The standard deduction is a fixed amount of income that is deducted from the gross income and calculated as per income tax rules. However, it is to be noted that Standard Deduction is applicable to those taxpayers who do not have to pay any taxes as they fall under one of the exemption categories.
The Standard Deduction has been calculated as per the income level of the taxpayer and the dependents.
The Income Tax Act, 1961, Section 80C, provides for a standard deduction to the individuals who pay taxes and also claim any of the exemptions. The standard deduction is the sum that is subtracted.
Income exempt from tax
- Section 10(1)- Income earned through agriculture
- Section 10(2A)- Income received by partners of a firm, as shared between them
- Section 10(10A)- The commuted value of the pension earned by an individual
- Section 10(10C)- Compensation in lieu of retirement from a PBC or any other firm
- Section 10(10CC)- Any income received through taxation on perquisites
What is an income tax return?
An income Tax return is a representation of your finances for the previous year & taxes which you have to pay. Income taxes should be filed within the date prescribed.
It is imperative that you file your income tax returns well before the deadline, which can be extended up to a period of 5 years.
An income Tax return is prepared by the tax authorities to ascertain a person’s income.
A person can be a salaried individual, a business person, a freelancer, a contractor, a company director, a partner or a self-employed professional or an investor or an entrepreneur, etc.
How to file an income tax?
The income tax system has many loopholes if you know what they are. But first, let’s talk about what you should expect. The first thing to do is file your income tax return. The first thing you should do is make an appointment with a qualified professional.
You should first contact a tax advisor who can help you with your income tax return. Next, you should contact a tax law specialist to help you manage your taxes so that you don’t pay more than you have to.
Where does all the tax money go?
Income tax is a type of tax that a government collects from residents based on their income. The money is then used to fund the country’s public services. Often, income tax is used as a way to fund a government’s military.
The government might use the money to pay for the salaries of military personnel.
It might also use the money to buy weapons and other resources that the military needs to function as a fighting force. the government might also use the money to pay for the medical expenses of injured military personnel.
So here is all you need to know about income tax as first-time investors. If you have any queries related to income tax, get one on one session with a GETO expert.
So if you liked this blog do share your thoughts or if you have any questions related to this topic drop your queries in the comment section below.
