Taxation is an integral part of the economy. It is the process of collecting money from citizens and businesses of the government to fund public services and meet its obligations. Taxes can be of different forms, such as income tax, property tax, sales tax etc. this blog will provide an overview of taxation, including its definition, types of taxes and steps for filing taxes.
A tax is a compulsory fee levied by the governments on their citizens to generate income to fund undertaking projects to boost economic growth.
There are two main categories of taxes in India, which are then divided into sub-categories:
Paid directly to the government by citizens or legal entities, subcategories include income tax, capital gains, securities transaction tax, prerequisite tax, and corporate tax.
Taxes are collected by sellers of products or services and added to the price. Subcategories include GST, customs duty, excise duty, service tax, and sales tax.
Step 1: Open the e- filing website https://www.incometax.gov.in/iec/foportal
Step 2: Register or log in to e-file your returns if registered.
Step 3: Click ‘Taxpayer’, enter PAN Card details, validate, and continue.
Step 4: Add personal info, email, and mobile number, and continue.
Step 5: Receive OTP on the registered mobile number and email.
Step 6: Enter OTP and verify details.
Step 7: Set a secure password and login message.
Step 8: Click ‘Register’ and receive a completion message.
Step 1: Open the official Income Tax e-filing website and click login.
Step 2: Enter your username and password, click the ‘e-file’ tab, and click ‘File Income Tax Return’.
Step 3: Select the assessment year you are filing your income tax returns from the menu and click ‘Continue’.
Step 4: You can select between filing your returns online or offline. You can choose whether to file your income tax returns as an individual, Hindu Undivided Family (HUF) or others. Select ‘individual’.
Step 5: Select option ITR1 or ITR4 from the dropdown menu, and click ‘Proceed with ITR1’.
Step 6: Answer the displayed question where you have to select your income bracket. Make sure to choose the correct option depending on your income.
Step 7: Key in your bank account details, and if you have already registered, you have to pre-validate it.
Step 8: You will be redirected to a final page where you can check all the details entered by you.
Step 9: Verify your returns and forward a hard copy to the Income Tax Department.
Taxation is an essential part of any functioning government’s revenue collection system. Filing taxes can be daunting, but following the steps mentioned above can make it more manageable. It is crucial to understand for anyone who wants to be a responsible and law-abiding citizen.
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Taxes in income tax is the amount of money an individual or an entity is required to pay to the government depending on their income. Therefore, the tax rates and slabs may be different to individuals, depending on their earnings.
Tax is a mandatory financial levy imposed by the government on individuals, businesses and other entities. It's based on their income, profits and the value of goods and services they produce or sell. The types of taxes in India include income tax, GST, customs duty, excise duty etc.