This Income Tax Return article is presented in QA(Question-Answer) model for easy understanding.
Qn 1: Should I pay Income Tax?
If your total income after deductions allowed by government comes above a limit(2L for men and 1.9L for women)you need to pay income tax.
But if you are a salaried employee,most probably this taxable amount would have deducted already as TDS(Tax Deducted at Source), so no need to worry about that.
Qn 2: What is Income Tax Return (ITR)?
Income Tax Return is the document filed by you showing your income details,TDS and claims for tax exemptions (like insurance/mutual funds).
Qn 3: Should I file Income Tax Return (ITR)?
Keep in mind that, if you have any claims of Refund, Income Tax Return(ITR) filing is a must.
But from the Assessment year of 2011-12, Income Tax Return Filing is exempted for those who have total income after deductions less than 5 lakh,under certain conditions.
If you satisfy those conditions,and if you do not have any claims of refund, you can sit back relaxed!No need to worry about ITR forms.
Qn 4: What is Assessment Year? When should I file ITR?
Assessment Year is the year in which Assessment is made.
For example, Today’s date is July 08,2011 and the Assessment Year is 2011-12.
But Assessment is made for the Financial Year 2010-11 and ITR is submitted for this period.
Last date of ITR submission for Financial Year 2010-11 is July 31,2011
Qn 5: How can I file Income Tax Return?
Income Tax Return can be filed Online and Offline,but online filing of Income Tax is encourage(e-filing).
The process is simple and is designed to encourage all common men without any technical knowledge to file their ITR.
Check the below link for details regarding online filing of income tax returns.
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