Tax revenue from income taxes contributes significantly to a country’s welfare programs, as it contributes to its government’s ability to execute welfare works. In addition, it is called direct tax because people who earn taxable income pay their taxes directly to their state’s government. As a government-imposed tax, it is your legal responsibility to file your income tax returns on time.
Individuals, companies, firms, local authorities, Hindu Undivided Families, and limited liability companies can all be subject to income tax. The new budget includes some new income tax rules and slabs. Income tax rules are released in the financial year and are applied in the following assessment year. When filing income tax returns (ITRs), taxpayers must follow these rules.
A Tax Return for Income
Income tax returns provide information about the income of a person as well as whether that income is taxable or exempt from tax. Individuals pay a certain amount of tax based on the slabs released by the government each year. Income-tax rates are released annually, but it is paid monthly.
People who miscalculate the amount of taxable income and pay excess taxes to the Income Tax Department during a year will get a refund.
In India, income tax transactions are governed by income tax laws. Individuals and corporations have to submit their income tax returns every year. If taxes are not made within a specified time period, they may be liable for fines and penalties.
- Within 31 July 2022, urn.
- In 2022, businesses that require audits will have until 31 October to do so.
- As well, businesses requiring TP reports are required to file income tax returns by 30 November 2022.
Due dates can be extended by the central government at its discretion.
Who should file an ITR?
All Indian citizens, regardless of their age, are eligible to file an income tax return under the new income tax slabs and rates.
- Consequently, each citizen is entitled to file a tax return each year based on his or her income.
- If an NRI earns more than 2.5 lakhs in a year, he also has to file taxes. If the yearly income is less than 2.5 lakhs, he is not taxed.
- Regardless of whether they have gained profits or not, all registered companies are required to file income tax returns.
- In India, foreign companies are required to file income tax returns.
- The owner of tangible or intangible assets outside the country is liable for taxes.
In the Event That a Return Is Not Filed on Time, Interest and Penalties Will Apply
In the event that you have not filed income tax returns within the due dates and the reason is not pre-specified, you could be subject to a penalty. The penalty for not filing income taxes within the due date is discussed under section 234A of the Income Tax Act.
Persons who do not file their ITRs on time will have to pay 1% interest per month on the amount due.
Payment of Advance Tax Installments Due Dates
When you do not pay your taxes before the end of the year, you will be faced with unnecessary liabilities and penalties. So, it is advisable to pay your taxes before the end of the year.
It is necessary for individuals to calculate their estimated income and taxable price within the four installments provided during the financial year before paying taxes in advance.
An individual must estimate their income and pay his or her tax in installments. 15 percent, 45 percent, 75 percent, and 100 percent are the installments to be paid. The payment must be made by 15 June, 15 September, 15 December, and 15 March. As a result, a study flow of the income tax can be maintained by making the tax payments at the same time as income, so 15 June 2022 is the last due date for 2022