Income Tax Returns in India

Income Tax Returns in India means that it is a way through which the citizen of the country pays his tax to the government. When the yearly income of the citizen from all the sources is greater than the non-chargeable maximum limit which is at present Rs 1 lakh, that citizen has to pay India Income Tax Returns.

The conditions under which a person has to file Income Tax Returns in India are:

Owns an immovable property

Has visited foreign countries

Has a telephone

Owns an automobile

Incurs on himself expenses

Holds a credit card

The Income Tax department which is under the government of India is the office where the people file the Tax Returns on Income in India. The rate of Income Tax Returns in India that is charged by the Income Tax department differs for individuals and companies. The rate of tax for individuals with income up to Rs. 1.5 lakhs is 20% and for more than Rs. 1.5 lakhs, the rate of tax that is charged is 30%. For companies, the rate of Income Tax Returns in India is more than what is charged from the individuals.

In order to file in India Income Tax Returns, a person has to fill up a form. There are many different kinds of forms that the Income Tax department has issued such as ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, ITR 7, and ITR 8 which are used to file Income Tax Returns in India. After the person has selected the form that suits him, he has to carefully fill up the form mentioning his PAN and also the assessment year which is the year for which he is paying the tax. The person has to mention on the form all his sources of income with the correct income amount.

For filing tax returns in India, the person has to also calculate his taxable amount including the deducting rebate and surcharges from his income. All the information that a person furnishes in the form while filing his Income Tax Returns in India must be correct. The Income Tax department also has the e-filing facility for Income Tax Returns in India. Between 31st March and 31st October, 2007 more than 10.84 lakh people had e-filed their Income Tax Returns in India. This shows that e-filing of Tax Returns on Income in India has become very popular. Each and every person who is liable to pay tax should file his Income Tax Returns in India since the tax money is used for the betterment of the country.

Income Tax Returns in India that are filed by the people are important sources of revenue for the Indian government.