How to file taxes in India?

How can I file my income tax returns in India? Is this something that you keep asking your self. Well then this article has to be the most important article for you.

It is the duty of every citizen of every country to pay their taxes and India is no exception. As an Indian, no matter where you are based, if you earn money within the country, you should pay tax. Remember that the money you pay is for a good cause – for the development of the country. In fact, being a citizen of the country it is a privilege to pay tax and see it grow.

Ever since Indian gained independence from the British it has been on the path of extremely fast paced growth and development. And this growth and development has been funded by the people – by you! Paying your taxes is basically your way of contributing to this amazing phenomenon that is India today. If you are unfamiliar with the process of taxation, then do take a look at the Indian constitution, taxation is a vital part of taxing.

How To Pay

So what does it involve? It is not just about handing over money to the government. You must ensure that the government is fully aware that you are handing over money. You have to submit your income tax papers to the government. But before this, you have to look into every step.

According to the Income Tax Act which was established in 1961, you must be legally binding to pay taxes and your income must exceed the stipulated minimum which has been set as the benchmark by the income tax agency. You should take advantage of the several tax consultants who help with the tax filing services.

This is a problem with NRIs. They don’t have the advantage of being physically present in the country to oversee their tax payments. So what should they do? If they are earning money in India, through a business or shares, then they should be paying taxes too!

Use The Internet

Well, the Government has thought of that as well. NRIs can take care of their taxes online! This has a great advantage – you don’t have to line up in the Income tax offices and waste the better part of a day there. You won’t have to look at completing forms and other hassles. All you need to do is see whether the correct amount has been deducted from your bank account by checking the invoice or the bank challans.

Be sure to get a hard copy of the receipt from the computer. Obvious, I know, but it is surprising how many people forget to do this! This is extremely important because it is physical proof that you have paid your dues to the government and might be required if you need to fight legal cases. You might even require it to tackle any problems related to taxation issues. You will also be provided with a receipt from your bank manager which you should safeguard carefully. Preferably keep it under lock and key.

For your convenience, the full details of your transaction will be sent to you via email along with your ID number. Using this identity number, you can log on to the site on the internet and you can see whether your money has been accepted by the government.

Another vital thing that you need is your Pan number. Along with this you should provide the address details where you were living during the period in which the tax was charged. The software will basically tally this information with the records already present for additional verification. Do be careful while entering the details. Remember: Paying taxes is your duty, never skip it because it is inconvenient!

 

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