Its basically just you telling the government how much youve earned from where

Its basically just you telling the government how

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It’s basically just you telling the government how much you’ve earned, from where you’ve earned it, and how much tax you’ve paid on it. Tax Forms: The different forms which have been prescribed for different classes of taxpayers are as follows : ITR – 1
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This is applicable to all individuals having salary or pension income or income from one house property, or income from other sources (which aren’t income from lottery winnings and income from race horses). This is also known SAHAJ. ITR – 2 This is for Hindu Undivided Families that have income from sources other than “Profits and Gains of Business or Profession”. ITR – 3 This is for Hindu Undivided Families or individuals who are partnered in a firm. The income here is either by the way of interest, salary, bonus, commission or remuneration that’s due or received from the partnered firm. The head of income should be “Profits and Gains of Business or Profession”. ITS – 4S This is for individuals and Hindu Undivided Families who’ve opted for the presumptive taxation scheme of Section 44AD / 44AE. This is also called SUGAM. ITR – 4 This is for individuals or Hindu Undivided Families who carry on a proprietary business or profession. ITR – 5 This is for firms, LLPs, AOPs, BOIs, artificial judiciary persons, co-operative societies and local authorities. This does not apply to trusts, political parties, colleges, etc. who are required to instead file return of income under Sections 139(4A), 139(4B), 139(4C) and 139(4D) and do not use this form. ITR – 6 This for companies that don’t claim exemptions under Section 11. Charitable and religious trusts can claim exemptions under Section 11. ITR – 7 This is for persons and companies who are required to furnish returns under Sections 139(4A), 139(4B), 139(4C) and 139(4D).
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ITR – V This is the acknowledgement of filing of return of income. Income Types or Taxable Heads of Income: Income from different sources is taxed differently. These sources are called heads of income and are as follows: Income From Salaries: All income received from an employer by an employee is taxed under this heading. Employers are bound to withhold tax compulsorily under Section 192 if the income of their employees falls under a taxable bracket. Employers must also provide a Form 16, which contains details of tax deductions and net paid income. Income from House Property: Income here is taxable if the assesse is the owner of a property that’s been given out on rent. The property should not be used for business or professional purposes. Individuals and HUFs can claim one property as “self-occupied”, which means you and your family live there, and do not have to pay taxes on this. (Learn more about calculating income from house property)Income from house property is calculated as under: Gross Annual Value (GAV) = x Less: Municipal Taxes Paid = (y) Net Annual Value = x-y Less: Deductions under Section 24 = z Income from House Property = (x-y) – z Profits and Gains Of Business or Profession: These are the taxes that will be applicable for income from business or professional services rendered.
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  • Fall '16
  • james
  • following taxes

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