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Income Tax

Income tax is a tax paid to the central government on personal income. According to Income Tax Act 1961, every person who is an assessee [an Assessee is a person by whom any tax or any other sum of money (eg. interest, penalty, fine, etc) is payable under the Income Tax Act] and whose total income exceeds the maximum exemption limit shall be chargeable to the income tax at the rate prescribed in the Finance Act.

 

Section 139(1) of the Income Tax Act has been revised w.e.f 1/8/1998 with the view to make it obligatory upon any person to file return if he/she satisfies any one of the six conditions:

 

Is the owner or the lessee (the user of equipment or property being leased/rented out for a time period) of a Motor vehicle

Occupies specified floor area of an immovable property

Incurs expenditure for himself or any other person on foreign-travel

Subscribes to a telephone

Is a holder of the credit card, not being an 'add-on' card, issued by any bank or institution

Is a member of a club where the entrance fee charged is Rs.25,000/- or more then he is required to file a return.

 

Filing of Income Tax Returns (ITR) is a legal obligation of every person whose total income for the previous year has exceeded the maximum amount that is not chargeable for income tax under the provisions of the I.T. Act, 1961. To file your Income Tax returns, you need to submit ITRs. There are different ITRs to file your income returns, depending on your profession/business/property.

 

Individuals having Income from Salary / Pension / Family Pension & Interest may use the ITR Form 1 to furnish their returns for the assessment year 2009-10:

Income Tax Return Form-I Income Tax Return Form-II Income Tax Return Form-III Income Tax Return Form-IV Income Tax Return Form-V Income Tax Return Form-VI Income Tax Return Form-VII Income Tax Return Form-VIII Acknowledgement Form

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