Tax Filing in Bangalore: Basics of Income Tax for Beginners
Investing and income tax details might be complicated, but Taxfilr is here to make it easier. Here at Taxfilr, we want to make your life simpler financially by simplifying your income taxes. In essence, filing income tax returns is a legal requirement for everybody receiving money. In order to make you feel prepared for your first Tax Filing in Bangalore, we have compiled a list of the most important income tax facts that you should know.
What is PAN?
PAN stands for Permanent Account Number. The Income Tax Department of India issues each taxpayer with this unique 10-digit alphanumeric number. Their one-of-a-kind permanent account number is the basis for all of their tax records and information. Paying advance or self-assessment tax requires the taxpayer to provide their PAN number. In addition, financial institutions, mutual fund firms, and banks all need individuals to provide their PAN. Through PAN, the income tax agency receives the economic data from these organizations.
What is TAN?
The TAN can help you remember your Tax Deduction and Collection Account Number. The Indian Income Tax Department gave out this one-of-a-kind 11-digit alphabetic code. Anyone whose job it is to deduct or collect taxes must apply for a TAN. All TDS/TCS documents, including TDS Return Filing, payment challans, and certifications, must include the TAN.
Taxes Need To Be Paid On This Income
In addition to your regular paycheck, you are also eligible to get interested in money you save or deposit with financial institutions. You may classify your taxable income as coming from one of these sources:
- Salary Income – Paychecks, bonuses, and any monetary compensation you may get from an employer in exchange for your work are all part of your salary income
- Revenue from Capital Gains – This category includes all revenue that results from dealings in capital assets, such as stocks and mutual funds
- House Property – Any money you make from renting out a home that you own is considered income from house property
- Income Received from Other Sources – This category includes, but is not limited to, gift money, interest on bank deposits or savings accounts, and other similar sources
- Income from Business – In addition to your regular income, you may also have other sources of income, such as a professional practice, which you may include in your total revenue
Is Filing An Income Tax Return Mandatory?
Income tax returns are required by law in India for anyone whose income is above the basic exemption threshold. For taxpayers, the income tax rate has already been established. If you fail in Tax Filing in Bangalore, you’ll have to pay late penalties and have a harder time obtaining loans and travel visas.
Saving money and lowering your tax obligation are both possible outcomes of mastering these tax principles with Taxfilr. In analyzing your assets and spending, try to find methods and genuine Income Tax Filing Sites like oursthat will allow you to take advantage of tax benefits to the fullest extent possible. Better financial management and paying the least amount of tax are two benefits of thorough tax preparation.
