Wednesday, October 12, 2011

Submit Your Income Tax Return Within The Time & Save Money !

Simply put, Income Tax refers to the direct tax paid on income, to the government, within given financial year (April-2010 - March-2011).

When the total income of a person from all sources of income exceeds the maximum amount permissible which is not chargeable to income-tax by the government, then that person is liable to file the Income Tax Return. Section 139(1) of the Income Tax Act was amended a few years back with a view to bring a larger number of persons in the tax net. Now if any person satisfies any one of the following six conditions:

* owns a vehicle
* occupies a specified floor area of an immovable property
* incurs expenditure for himself or for any other person on foreign-travel
* subscribes to a telephone
* subscribes to a Credit Card
* is a Club member

then he/she is required to file an Income Tax Return.

The slabs to file Income Tax Returns vary, depending upon the total income earned during a year and the various exemptions for which the individual/entity is eligible for. In thecase of an assessee earning income primarily from salary, the due date for filing the IncomeTax Return is normally 30th June of the assessment year, unless extended by the Income TaxDepartment.

Individuals can file their Income Tax Returns by filling the requisite forms ITR 1, ITR2, ITR 3 or ITR 4.

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