What would be considered as my ‘Income’?
The word Income has a very broad and inclusive meaning. In case of you’re a salaried employee all that is received from your employer in cash, kind or as a facility is considered as income. If you’re a businessman, your net profits will constitute income. Income may also flow from investments in the form of Interest, Dividend, Commission, etc.
Under the Income Tax Act, 1961, all Income earned by persons are classified into 5 different heads, such as:
- Income from Salary
- Income from House Property
- Income from Business or Profession
- Income from Capital Gains
- Income from Other Sources
What is an Assessment Year?
Assessment Year is a twelve months period starting from April 1 of the previous year to March 31 immediately following the previous year. In the Assessment Year, the return is filed for the income earned in the previous year, for e.g. for Financial Year 2014-15, the Assessment Year is 2015-16.
By when should I file my tax returns?
July 31st of every year is the due date for filing income tax returns for salaried tax payers and for non-corporate assessees whose accounts are not required to be audited, while September 30th is the due date for companies, persons other than companies and working partners of firms whose accounts are required to be audited under the Income Tax Act, 1961 or any other law.
What is TDS?
TDS (Tax deducted at source) combines the concepts of ‘pay as you earn’ and ‘collect as it is being earned’. It requires that the person, upon whom responsibility has been cast, is to deduct tax at the appropriate rates, from payments of specific nature which are being made by him to a specified recipient. The deducted sum is required to be deposited to the credit of the Central Government. The recipient from whose income tax has been deducted at source, gets the credit of the amount deducted in his personal assessment on the basis of the certificate issued by the deductor.
What are the tax benefits that I can avail of if I have a Home Loan?
If you have availed a home loan, either to buy or build a house, you can claim tax benefits on both the principal and interest components of the home loan.
Under Section 80C of the Income Tax Act, 1961, the repayment of principal of up to ₹1.5 lac is deductible in full from your income, and you can avail a deduction of up to ₹2 lac on the interest component, under Section 24(b). Only one property can be claimed as self-occupied.
What is Form 16?
Form 16 is a statement containing TDS deducted details on salary for an employee, which is issued by the employer to the employee.
What is Form 16A?
Form 16A is a statement containing all the TDS deducted on all payments except salary, for e.g. the TDS deduction of interest on a Bank Fixed Deposit.