Noteworthy FAQs About Income Tax Filing for Every Taxpayer

Why Do We Need to File ITR?

A mandatory ITR filing requirement applies to all salaried individuals whose combined income exceeds the baseline exemption level. These are some of the often-asked questions that citizens have regarding basic income tax issues.

Income Tax: What Is It?

Every person's income is subject to income tax, which is a tax imposed by the Indian government. The Income-tax Act of 1961 contains the rules controlling income tax.

Who is Responsible for Paying Taxes?

Everyone who is a "person" must pay income tax. The term "person" includes both real and made-up people in its scope.

Hindu Undivided Families (HUFs), Associations of People (AOPs), Bodies of Individuals (BOIs), companies, Limited Liability Partnerships (LLPs), corporations, local heads, and other artificial legal entities not covered by any of the aforementioned are all regarded as individuals. As a result, any artificial entity, in addition to a natural person (an individual), is liable to pay income tax.

What Does the Income-tax Administrative Structure Look Like?

The Ministry of Finance is in charge of managing the government's income operations. The Ministry of Finance's Department of Revenue has entrusted the Central Board of Direct Taxes (CBDT) with the responsibility of administering direct taxes including income tax, wealth tax, etc.

The income tax department is tasked with enforcing direct tax rules while the CBDT handles crucial inputs for direct tax policy formulation and planning. As a result, the CBDT is in charge of and responsible for overseeing the administration of income tax legislation.

What Method Does the Government Use to Collect the Tax?

From the below-mentioned methods, the government would collect the tax.

Voluntary payment by taxpayers into various designated banks
Taxes deducted at source (TDS) from the income of the receiver
Taxes collected at source (TCS)

What Duration Would be There to Consider the Income of the Individual for the Income Tax?

On the yearly income of the individual, an income tax would get charged. From 1st April to 31st March of the subsequent calendar year, the duration of income tax law runs. The year is divided into two categories under the Income Tax Law: Assessment Year and Previous or Current Financial Year.

The income made is said to be as the former year or the current fiscal year and the year where the income levied to tax would be said to be as the assessment year.

For instance, the income made in the duration of 1st April 2022 to 31st March 2023 would be qualified as the income of the former year 2022-23. The former year 2022-23 income shall get levied to tax in the subsequent year i.e in the assessment year 2023-24.

What Do the Term Exempted Income and Taxable Income Denote?

The income levied to tax would say to be taxable income. While the exempted income does not levy tax would be said to be the exempt income. The income tax law allows the exemption from tax to this income.

Comments

Why Small Firms Should Consider Gen Payroll Software?

Businesses in this competitive era would be required to manage the payroll. Payroll software has multiple operations such as paying employees, following tax laws, managing employee benefits, filing important documents, and keeping accurate records. Businesses that manage tasks manually or with spreadsheets can result in inappropriate compliance and issues, wasting time in doing operations. Gen Payroll software arrives to manage payroll with accuracy and resolve the issues that come therein. The merits and demerits of Gen Payroll software are mentioned below. Gen Payroll Software Gen Payroll is a payroll management software made by SAG Infotech . It eases and automates the process of payroll. The software’s features are tracking employee attendance, calculating salaries, ensuring compliance with laws like PF (Provident Fund), ESI (Employee State Insurance), and TDS (Tax Deducted at Source), as well as generating payslips. Businesses, whether small or large, can use this software. ...

How ITR Software Assists Individuals in Filing Tax Returns

Every assessee's process of income tax return (ITR) filing is significant, as it contributes to Indian's economy. The Income Tax Department has made efforts to facilitate this approach in recent years, but numerous people still see themselves steering a difficult financial system, multiple tax deductions, miscellaneous exemptions, and changing tax laws. This complexity can turn what must be an easy task into a significant challenge. In this context, income tax software evolves into an important partner, presenting a useful variety of accuracy, efficiency, and reassurance. The software enables return filing that permits taxpayers to handle their financial responsibilities when complying with the law. 1. Accurate Tax Calculations An incorrect income tax calculation of taxes could result in messages from the Income Tax Department or missed refunds. The tax software helps in finding taxable income and tax deductions that you may be allowed, like insurance or home loans. The co...

Major GST & Filing Updates 2025: Must-Know for Businesses

In 2025, India made amendments to its Goods and Services Tax (GST) system, which was introduced in 2017. The primary purpose of this amendment is to ensure that businesses and individuals comply with tax regulations, reduce tax fraud, and streamline tax management through the use of technology. The GST Network (GSTN) and the Central Board of Indirect Taxes and Customs (CBIC) have implemented new processes and software systems to streamline the tax return filing procedure for individuals. These improvements aim to simplify the tax filing process, minimise errors, and ensure that all taxpayers, as well as tax professionals, fulfil their tax obligations responsibly. Updates for the same have been given, and the impact they have had on business, accounting, and GST software providers. GSTR‑3B Locking Mechanism Introduced from July 2025 In 2025, an amendment was introduced regarding how businesses report their taxes using GSTR-3B. Now, the details of sales made by businesses, referred to as...

SAG Infotech: Need Tax Software (Call 0141-4072000)

Search This Blog