Income Tax Filing
There are two types of taxes in India: direct taxes and indirect taxes.
Direct taxes are taxes that are calculated and paid directly on your income, e.g. payroll taxes, etc. Income tax is a direct tax.
Indirect taxes are taxes that are not imposed on you directly on the purchase of goods or use of services, e.g. Buy a cell phone or eat regular food. A cell phone seller or fast food service provider charges you a tax and then puts it into a government account. A large number of indirect taxes are now covered by the Goods and Services Tax (GST).
Anyone earning more than a certain amount is subject to income tax. Your income may come from salary, interest income from savings, income from mutual funds, real estate sales, or business or professional income. The income tax rate is determined at the beginning of the year in the estimates of the Union (in the Parliament of India). This tax paid or withheld is called income tax.
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What type of ITR applicable?
|ITR-1||ITR-1 form can be used by individuals who have less than Rs.50 Lakhs of annual income earned by way of salary or pension and have one house property only.|
|ITR-2||ITR-2 form must be filed by individuals who are NRIs, Directors of Companies, shareholders of private companies or having capital gains income, income from foreign sources, two or more house properties, the income of more than Rs.50 lakhs.|
|ITR-3||ITR-3 form must be filed by individuals who are professionals or persons who are operating a proprietorship business in India.|
|ITR-4||ITR-4 form can be filed by taxpayers enrolled under the presumptive taxation scheme. To be enrolled for the scheme, the taxpayer must have less than Rs.2 crores of business income or less than Rs.50 lakhs of professional income.|
|ITR-5||ITR-5 form must be filed by partnership firms, LLPs, associations, and bodies of individuals to report their income and computation of tax.||
|ITR-6||ITR-6 form must be filed by companies registered in India.|
|ITR-7||ITR-7 form must be filed by entities claiming exemption as charitable/religious trust, political parties, scientific research institutions, and colleges or universities.|
It is mandatory for individuals, NRIs, businesses, LLPs, businesses, and trusts to file tax returns annually. Individuals and NRIs are required to submit income tax returns if their income exceeds Rs.2.5 lakh per annum. Ownership and partnership companies are required to report income tax regardless of total income or loss. All companies and corporations with limited liability are required to file income tax returns regardless of their turnover or income. IndiaFilings provides income tax collection services with the support of dedicated tax experts. Download your Form-16, sit back and relax. Our specialists will produce your tax return and give you a receipt in 1 to 2 working days.