Income tax is a tax levied by the government of India on the income of every person. Once a person is liable to an income tax payment, a question arises as to how this tax can be paid without any hassle. We would discuss this aspect in detail in this article along with advance tax, tax calculation, and applicability of ITR.
Income tax payment can be paid online through the website of https://www.tin-nsdl.com/. A taxpayer can follow the below steps to pay their taxes:
Once the payment of tax has been made, either online or offline, the income-tax department would match the details for the PAN against which the payment has been made. For this, the department asks the taxpayer to provide the below payment details at the time of filing returns online:
The above payment details can be filled in “schedule-IT” of the income tax return. If there is any discrepancy between the data submitted in the return, and that which was provided at the time of payment of tax, the income-tax department would notify the same through the registered email.
Advance tax is also a method of collection of tax on a prepaid basis. The basic concept of advance tax is that a taxpayer pays the government during the course of earning income in the same previous year itself. Advance tax is required to be paid only if the tax liability is more than Rs. 10,000.
Senior citizens are not required to advance tax provided they do not have any income chargeable under business & profession.
In order to pay the advance tax online, a taxpayer can log in to https://www.tin-nsdl.com/ and under services > e-payment: pay taxes online section pay advance tax online.
In order to pay advance tax offline, the taxpayer needs to file the relevant challan ITNS 280 and submit to the bank.
All the assessee’s, who are liable to pay the advance tax shall pay the same in four installments as per the below table:
|Due date of installment||Amount payable|
|On or before the 15th of June||Not less than 15% of such advance tax|
|On or before the 15th of September||Not less than 45% of such advance tax, as reduced by the amount paid in the earlier installment.|
|On or before the 15th of December||Not less than 75% of such advance tax, as reduced by the amount paid in the earlier installment or installments.|
|On or before the 15th March||Not less than 100% of such advance tax, as reduced by the amount paid in the earlier installment or installments.|
In order to calculate advance tax, below steps can be followed:
In order to calculate the tax liability, we need to first calculate the total income. The total income of an assessee is computed by deducting from the gross total income, all the deductions allowed under chapter VI A of the income tax
|Head of Income||Amount|
|Income from Salaries(a)||xxx|
|Income from House Property(b)||xx|
|Income from Profits & Gains of Business & Profession(c)||xx|
|Income from Capital Gains(d)||xx|
|Income from Other Sources(e)||xx|
|Gross Total Income(f=a+b+c+d+e)||xx|
|Less: Deductions under chapter VI A(80C to 80U)(g)||xx|
|Total Taxable Income(h=f-g)||xx|
On the total income as computed above, tax is calculated in accordance with the tax slab or rates prescribed and applicable to the assessee. The same shall be further increased by a surcharge, if applicable and health and education cess @ 4%. The amount so arrived at is the final tax liability. To know about income tax slab and its applicability, click here.
There are various deductions and exemptions available to the taxpayer under the income tax act. Some of the most common exemptions & deductions would include:
In order to claim the above deductions & exemptions, the taxpayer needs to enter the details of the same while filing their tax returns online along with the submission of the proof to their employer. In case any deduction or exemption is missed by the employer to be adjusted in form 16 of the employee, the same can be claimed by the employee at the time of ITR filing.
Income tax payment needs to be made through a challan which has been specifically mandated by the income tax department. Hence it becomes necessary to know about the various challan provided by the department. Below are the important challans used for income tax payment:
|ITNS 280||Payment of Advance tax, Self Assessment tax, Tax on Regular Assessment, Surtax, Tax on Distributed Profits of Domestic Company, and Tax on Distributed income to unitholders.|
|ITNS 281||Payment of TDS/TCS by Company or Non-Company Deductee|
|ITNS 282||Payment of Securities transaction tax, Estate duty, Wealth-tax, Gift-tax, Interest-tax, Expenditure/other tax, Hotel Receipt tax and Commodities transaction tax|
|ITNS 284||Payment of Demand/Penalty/Interest etc under Undisclosed Foreign Income and Assets and Imposition of Tax Act, 2015 (Black Money Act).|
|ITNS 285||Equalization Levy|
For the convenience of the taxpayer, the income tax department has provided the facility to pay the tax both online and offline. In both cases, the details are required to be submitted post the payment through the income tax return filed by the assessee.
In case of selection of wrong assessment year by the taxpayer, a window of 7 days is provided to the assessee to get the details corrected in the case of offline payment from the bank. If the assessee realizes the same post the expiry of 7 days, he/she has to apply to the concerned income tax officer to make the correction.
Similarly, in case of online payment, a request for correction needs to be made to the jurisdictional officer who is authorized to make the correction.
Below are the various ITR forms and its applicability on taxpayers who need to file ITR:
ITR 1: For individuals being a resident (other than not ordinarily resident) having total taxable income up to Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest, etc.), and agricultural income up to Rs. 5,000.
ITR 2: For Individuals and HUFs not having income from profits and gains of business or profession. So individuals having capital gain income and agricultural income exceeds Rs. 5,000 needs to use this return form.
ITR 3: For individuals and HUFs having income from profits and gains of business or profession. The return may include house-property, salary, capital gains etc.
ITR 4: For Individuals, HUFs, and Firms (other than LLP) being a resident having total income up to Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE.
ITR 5: This income tax return is meant for firms, LLPs, AOPs (Association of persons) and BOIs (Body of Individuals), Artificial Juridical Person (AJP), Estate of deceased.
The income tax filing is available at the efiling website of Income Tax India. You can login to the efiling website from your account and file ITR. The income tax filing is a simple and easy process made available by the Income Tax Department.
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