Income Tax and Return Filling

Income tax is a tax on earnings, and filing returns involves reporting income, claiming deductions, and calculating taxes owed. The process includes selecting the right form, submitting it by the deadline, and paying any due taxes. Filing ensures compliance, prevents penalties, and may result in tax refunds.

TDS

TDS (Tax Deducted at Source) is a system where tax is deducted by the payer from specified payments (e.g., salary, interest, rent) before making the payment to the payee. The deducted amount is then remitted to the government. TDS helps ensure timely tax collection and provides tax credits to the payee, which can be claimed during income tax filing.

PF and ESI

PF -Provident Fund and ESI-Employee State Insurance are social security schemes in India. PF is a retirement savings plan, where both employer and employee contribute a percentage of the salary. ESI provides medical and disability benefits. Both PF and ESI contributions are eligible for tax deductions under Section 80C and Section 80D of the Income Tax Act.

Income Tax Notice and Resolution

Income tax notice resolution involves addressing discrepancies raised by the tax department, such as underreported income or unpaid taxes. To resolve, carefully review the notice, verify details with your records, and respond within the deadline. If necessary, file a revised return, submit required documents, and pay any dues. Timely resolution helps avoid penalties and legal issues.

Pay Roll Process

The payroll process involves calculating employee salaries, deducting taxes (TDS), and other contributions like PF, ESI, and insurance. It includes verifying work hours, calculating overtime, and applying bonuses or deductions. After calculations, the net pay is processed, and payments are made. Payroll is followed by issuing payslips, filing taxes, and maintaining records for compliance.

Required Document List

Income Tax Return

Income Tax Return is a form in which the taxpayers file information about his income earned and tax applicable to the income tax department. The department has notified 7 various forms i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7 till date. Every taxpayer should file his ITR on or before the specified due date. The applicability of ITR forms varies depending on the sources of income of the taxpayer, the amount of the income earned and the category the taxpayer belongs to like individuals, HUF, company, etc.

ITR-1

Income From <50 Lacs

  • Salary / Pension     
  • Own House
  • Other Sources

ITR-2

Income From-

  • Everything from ITR-1>50 Lacs
  • Captial Gains
  • As a Partner in the  firm
  • Foreign Income
  • Agricultural Income >Rs.5000

ITR-3

Income From-

  • Everything from ITR-2
  • Business/ Profession

ITR-4

Presumptive Business Income Under-

  • Section 44AD
  • Section 44ADA
  • Section 44AE

ITR-5

  • Firms
  • LLPs
  • AOPs
  • Bois

ITR-6

  • Companies not claiming exemption under section 11

ITR-7

Persons/Companies Under

  • Section 139 (4A)
  • Section 139 (4B)
  • Section 139 (4C)
  • Section 139 (4D)