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Taxation Guide |
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What is PAN ? |
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Pan Card Number and Much More! - Peeplo.com/Top_Results
Permanent Account Number (PAN) is a number which is used by Income Tax Department as an identification of a person. Through this number income tax department can get every information about the assessee.
It is a 10 digit alphanumeric number which is printed on a laminated card, known as PAN card along with other details like PAN number, name of applicant, father's name, date of birth and passport size photo.
(PAN number is taking place of General Index Registrar (GIR) Number. GIR number is given by an assessing officer to assessee which also contain details of assessing officer.)
Under section 139A of Income Tax Act, 1961, PAN number is required for following persons:
1) Whose total annual income is more than the amount which is not chargeable under income tax act
2) Whose income through business or other profession is more than Rs. 5 lakhs
3) Who is filling income tax return
PAN is necessary in case of following transactions :-
1) Filing income tax return
2) Any correspondence with income tax department
3) Submitting challans for payment of any tax to the department
4) At the time of verifications of identity of assessee in income tax department |
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Do I need to file a Tax Return ? |
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You will need to file an annual tax return if you fall into one of the following categories:
1. 1. If you are an individual whose annual income, before tax deductions, is above any of the following cases
o Rs.150,000 for all resident Indians, other than the two cases mentioned below
o Rs.180,000 for resident women
o Rs.225,000 for resident senior citizens
2. If you need to file for a tax refund for tax deducted at source
3. If you get a notice from the Income Tax Department for return of income
4. If you want to claim carry forward losses from the current year in future years |
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How I can file the tax return ? |
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As an individual taxpayer, you can file your tax return in two ways:
1. You can fill out the tax form and deposit the hard copy to the local income tax department office
2. Or, you can chose to file electronically on the internet on the Income Tax Department’s website. You will need a digital signature to be able to file electronically. If you do not have a digital signature, you will need to file a hard copy of your online acknowledgement manually with the Tax Department.
The above procedure is true for HUFs (Hindu Undivided Family) as well. |
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What is E-filling of return ? |
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The Electronic Furnishing of Return of Income Scheme was introduced in 2004. Under this scheme, eligible assessees can file their returns of income electronically through authorised persons to act as e-return intermediaries on or before the due date. The intermediaries digitise the data of such returns and transmit the same electronically to the e-filing server of Income Tax Department under their digital signatures. |
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Are there deadlines for filling tax returns ? |
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Yes! And if you do not meet these deadlines you might have to pay interest or penalties or even face a tax inquiry.
The due date for filing your tax return is:
July 31 for individuals whose accounts do not require a tax audit
September 30 for persons and companies who need to be audited |
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What does a "tax audit" mean ? |
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Tax audit results in an audit of accounts if the turnover of a business exceeds Rs. 40 lakhs or in case of specified professionals the professional receipts exceeds Rs. 10 lakhs. Salaried employees do not need to worry about tax audits. |
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How can I calculate my taxes ?
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Step I : Gross Income |
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Identify and tabulate all sources of income – salary, business income, interest, rental, capital gains (Monthly Income * 12) |
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Step II : Donations |
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Calculate the total donations you have made towards various institutions in accordance to Income Tax Rules. |
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Step III : Savings |
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Calculate your total savings. This may include all the savings and investments mentioned in Income Tax Saving Schemes Sections. |
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Step IV : Taxable Income |
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the following rule to calculate your taxable income |
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Step I - ( Step II + Step III) = Taxable Income |
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Step V : Income Tax |
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When you have calculated your taxable income, refer to the following slabs to calculate your Income Tax accordingly. Choose the slab according to your income and calculate your Income tax. |
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