The income tax return filing date (last day) is drawing near and income taxpayers should pay heed as otherwise they will have to pay a huge amount in penalties that get progressively worse. However, before doing all that, they should be aware of certain terms that may be applicable to them. This is necessary as otherwise they may file the wrong information and that will require to be changed sometime in the future and this can cause immense problems with the Income Tax department that a taxpayer should avoid as much as possible. Here we take a look at what is income tax, AIS, PAN, Form 26AS, Advance tax to assessment year. Check them all out here in order to be better informed and better prepared to do your ITR filing.
Also, know the 6 things the Income-Tax department expects from taxpayers:
1. Be honest and compliant
Taxpayer is expected to honestly disclose full information and fulfil his compliance obligations.
2. Be informed
Taxpayer is expected to be aware of his compliance obligations under tax law and seek help of department if needed.
3. Keep accurate records
Taxpayer is expected to keep accurate records required as per law.
4. Know what the representative does on his behalf
Taxpayer is expected to know what information and submissions are made by his authorised representative.
5. Respond in time
Taxpayer is expected to make submissions as per tax law in timely manner.
6. Pay in time
Taxpayer is expected to pay amount due as per law in a timely manner.
Here are the top 10 income tax terms to know
Income Tax :
Income tax in India is governed by Entry 82 of the Union List of the Seventh Schedule to the Constitution of India, empowering the Central Government to tax the income. Income-tax law consists of Income-tax Act, 1961, Income-tax Rules 1962, circulars and notifications issued by the CBDT, annual Finance Acts, and judicial pronouncements by the Supreme Court, High Courts and Income-tax Appellate Tribunals.
Annual Information System :
Annual Information Statement (AIS) is a statement that provides complete information about a taxpayer for a particular financial year. It contains information about taxpayers’ incomes, financial transactions, tax details, income-tax proceedings, etc.
Assessment Year :
Assessment Year means the period of twelve months commencing on the 1st day of April every year.
Advance tax :
The scheme of advance tax requires every assessee to estimate his current income, and if tax liability on such estimated income exceeds the specified limit, the assessee is required to pay the estimated tax in instalments during the financial year itself
Under reporting of income:
Underreporting of income means an act of intentionally or unintentionally reporting a lower income or not reporting income at all in the income tax return. The scenario of under reporting of income is mentioned under section 270A..
Form 26AS :
Form 26AS is a tax passbook of an assessee which contains a complete record of tax deducted at source (TDS), tax collected at source (TCS), advance tax paid, self-assessment tax paid, and any other tax payment made by the taxpayer. It also contains details of tax refunds received by the taxpayer during the financial year.
Long-term capital gains :
Gain arising on transfer of long-term capital asset is termed as long-term capital gain.
Misreporting of income :
Misreporting of income refers to the act of providing inaccurate or false information to the tax authorities. The scenario of under reporting of income is mentioned under section 270A.
Permanent Account Number (PAN) :
The Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued for the purpose of identification of a taxpayer. PAN has to be mentioned in all communications with the Income-tax Dept. and in specified financial transactions which exceed the threshold limit.
Return of income :
Return of income is the format in which the assessee furnishes information related to his total income and tax payable. It is a declaration of income by the assessee in the prescribed format.
The income tax return filing date (last day) is drawing near and income taxpayers should pay heed as otherwise they will have o pay a huge amount in penalties that get progressively worse. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
