An income tax return is to be filed by all the citizens of our country, similarly even the people living outside India also need to be conscious of their total income against which a certain amount of tax will be applicable that will be payable to the government.
The income tax, just as it sounds is imposed on the income that an individual earns. In general, the governments levy taxes on the financial income generated by someone that is essentially within their jurisdiction. This tax is one of the primary sources of funds for the government. This fund is eventually used by the government to finance itself and to perform all the other activities that it is entitled to. So, it is really important that we decide to fulfill our responsibility towards the government and file our taxes at the end of each year.
Besides, it is also important to determine whether we owe our taxes to the government or are eligible to claim our refunds. Yes, this is because if we act as responsible citizens and duly file our taxes well in advance then we can also be eligible for refunds at times. This lies in contrast to those who are eventually late in filing their taxes. In most cases, they end up paying more after adding fines to their normal taxes.
Calculating your Income Tax
If you are of the opinion that calculating the income tax of a year is difficult, then you should be aware of the fact that we are surrounded by a list of software that helps us with the maths of the tax. Yes, you haven’t got much to do on yourself now.
How does income tax differ from person to person?
The income tax paid by you might also be different from any other citizen of your country. This is because there are numerous factors one which these taxes depend on. Out of all the parameters, the type of income, the total sum earned by an individual, his/her age, and all the investments that come under tax deduction are the major parameters on which the tax depends.
If you are wondering about who deducts your taxes, then it is done usually by the employers. An earlier filing of your tax can also get you refunds, as applicable.
What is your Net Taxable Income?
If you are yet to discover how to find out your net taxable income, then know this can easily be done by clubbing the income from all the various sources once you successfully deduct the standard sum from your salary income as well as all available tax exemptions on allowances, income from investments and housing loan, etc. Then, you can apply the final tax rates and tax slabs on the Net Taxable Income. This will help you further calculate the amount of tax that should be paid by a taxpayer to the government.
Can you get a refund?
In case you are wondering if you can get a refund against the filing of your tax duly, then yes, you will get it indeed. We all know how people love to get a refund. Therefore, we are with all you need to know about income tax refunds. Here’s all you need to know about tax refunds:
1. It is essential for you to know that your refund is calculated annually, that is, at the end of each year. And this is done by deducting your total federal income tax for a complete year from the amount that is taken as your federal income tax.
2. Next, you need to know that a considerable sum of money has been withheld from each of your paychecks. And this amount is not included in the federal income tax.
If your salary comes under income tax deductions then it’s better that you should file your tax in due time to avoid any extra charges. Besides, filing the taxes with the premium income tax return calculator has never been easier.