Taxpaying is one of the important part of your duty as a citizen of your country, the tax you pay to your govt comes back to you in the form of services which is made better for your conveniences such as good roads, safe public transports, availability of nearby shops for basic essentials and many other things. It is a big responsibility of all the citizens to pay their taxes honestly because the tax you pay is used for the basic essentials which you need in life. If you won’t pay taxes, the govt won’t be able to raise funds which can be used in public betterment which include the things done for the economically backward class and the unprivileged section of the society which means the developmental process will be slow down.
Hence, it is important to behave like a good and honest citizen because by doing this you are not only doing well for your nation and its people but also you will do well for you. Whenever a govt policy reaches to the needy people they bless the govt which surely come to you once. So, no matter if you have just started earning or have been earning, be sure to pay your taxes regularly and honestly.
For those who have just started earning and want to become a taxpayer, then first you have to do a little research in order to have some knowledge to save some amount. Hence, let us get into the details:
Know your different source of income:
A taxpayer pays the amount of tax which he actually earns which is a part of him/her income, so before getting into the taxpaying first you need to know about the sources of income you have. There are various kinds of income sources which include the salary, the property rent you get, various capital gains such as share market, mutual funds, fixed deposit or so and the business & profession income. Each type of income has a definite percentage of tax which is to be paid according to it.
Income slabs according to the income of an individual:
Though people who have annual income above 2.5 lakh only have to pay taxes and the people who have their annual income lower than this are exempted from paying taxes. The tax percentage depends on the annual income you have every year like if you have annual income from 2.5 to 5 lakh then you need to pay 5% of it, again if you earn from 5 to 10 lakhs then you need to pay 10% of it and if you earn above 10lakhs then you need to pay 20% of it.
Types of rebate you can in taxpaying:
Yes, tax-paying honestly is good but like the discounts you have in online shopping, you get the rebate in tax paying too depending on the policies you have. Like if have health insurance or life insurance or a home loan or any other you can have a rebate in your tax amount, also you can have the rebate if you have a study loan or education of yours or your’s children which you are currently paying. Make sure to read all the important notes before signing any documents since it is advised to read all the terms before signing something.
The declaration of the other gains:
It is important for you to mention all the income gains from other sources because it can be inconvenient for you in any case those incomes come up to the surface. For example, if you have gained money in mutual funds or in share market or in your FDs, you need to mention that in your tax declaration.
How to File Income Tax Returns in India?
Documents which is required to fill the form:
Documentation is one of the important things which you need to do with a good mental state since any missing documents will increase your visit to the tax office. So, in order to make a smooth tax payment, make sure to collect all the necessary documents which are also true and 100% original.
Documents which you will require are:
- Address proof
- Identity proof
- PAN card (Permanent Account Number) linked with Adhaar Card
- Investment related documents (to avail the redemption in tax amount)
- Form 16 if you are an individual (this acts like your TDS certificate which proves tax is deducted from income)
- Loan documents such as home loans or education loans if any (to avail the redemption)
So far all the information which you need to know before paying your taxes if you are doing it for the first time, this can also be educational for the people who already paid it before because you may not be done correctly earlier. Also, if you have decided to pay the taxes then you need to pay your taxes till JULY 31, 2019.
