About the Income Tax Department of India
One of the government bodies handling direct tax collection in India is the Income Tax Department. The Central Board for Direct Taxes manages all departmental activities (CBDT). The official website of the department contains information related to international taxation, tax rules and regulations, and organizational structure, and details about Income tax e-filing in Trichy among other things.
What is Income Tax?
Income tax is a financial charge levied on the annual income of an individual or business entity, which is generally earned within a financial year. The Income Tax Act 1961 is the law on which the Indian income tax system is based, comprised of rules and regulations for calculation, assessment and collection. Every taxpayer on an annual basis, is expected to file an Income Tax Return (ITR) within the allowable deadlines in order to declare his/her exemplary income and seek for a tax rebate where the such situation arises. An income tax return may be filed within the Income Tax Department’s official webpage or verified third-party pages, either in person or over the internet. The Indian income tax system provides a number of deductions and exemptions which act to ease the tax load for a particular financial year.
The Income Tax Act
The Income Tax Act of India passed in 1961 encompasses all income tax laws and potential deductions concerning taxes. The law has changed many times due to inflation and different economies at various periods.
Income Tax Rules in India
The legislature enacted the Income Tax Act in 1961 to handle and monitor national income tax. However, the Income Tax Rules 1962 were drafted to support the act’s implementation and enforcement. In addition, only the Income Tax Act is needed to read the Income Tax Rules.
The Income Tax Rules do not supersede the provisions of the Income Tax Act, but they are meant to operate within their framework.
Income tax is divided into two major types
Direct Taxes
These are mandatory payments made directly to the state by an individual or firm without any intermediary.
Indirect Taxes
These are payments that producers make to their national government while using certain goods and services.
The funds collected from taxes are used by the state to maintain essential sectors such as health care, education, and agriculture. Taxpayers find it easier to handle Income tax return filing in Trichy, TDS /TCS, and non-TDS/TCS payments through online platforms.
- TDS - Tax Deducted at Source
- TCS - Tax Collected at Source
Who Is Eligible to Pay Income Tax?
Indian taxpayers were required to pay income tax under the previous system if they were under 60 years old and earned more than Rs. 2.5 lakh or if they were of age above 60 years and earned also more than the same amount. Another categorizing factor is age; different tax laws apply to persons who have not reached the age of 60 and those who are aged between 60 and 80.
Any person whose annual gross income surpasses the amount of three lakhs rupees (before any applicable deduction) needs to submit an ITR. The threshold for this amount is Rs. 3,00,000 and further Rs. 5,00,000 for senior citizens and super senior citizens as the case may be respectively. The incurrence of Income tax online to be paid and the requirement to file income tax returns is mandatory for these entities
- Artificial Judicial Persons
- Corporate firms
- Association of Persons
- Hindu Undivided Families
- Companies
- Local Authorities
- Body of Individuals
What Are the Various Types of Income?
Property Income
The money received from renting out residential real estate falls under this category. Under this heading, people who receive rental income are liable to Income tax return in Trichy.
Salary Income
This category includes income from work, such as salary and pensions. Tax obligations stem from income derived from one's job.
Business or professional income
This section consists of independent contractors, self-employed persons, businesses, freelancers and professionals like life insurance agents, chartered accountants, doctors, solicitors and private tutors. All income earned from these ventures is taxable.
Capital Gains Income
his category of income refers to additional profits gained from sale of capital assets like investments in stocks or mutual funds; selling of a house or land is also included here.
Other Sources Revenue
Revenue from other sources includes interests accrued from savings bank accounts, fixed investments as well as lotto wins, all subject to Income tax online in Trichy
Income Tax Return Filing in Trichy
A person’s income is acknowledged in Income Tax Return in Trichy (ITRs) that are submitted to Income tax departments. All you need to complete the income tax return file process online is here with you. Before venturing out to file your taxes, you shall require Form 16 from your employer and proof of any investments made by you. Thus, it helps calculate the total taxes payable for the year and find out if it has any refund entitlement..
You can begin completing your income tax return as soon as all the necessary paperwork is ready.
The next-generation common IT form has been made available to professionals and MSMEs. If their cash receipts are less than 5%, presumptive tax limitations have been raised to Rs. 75 lakh for income and Rs. 3 crore for turnover.
Read more about Income Tax Return Filing in Trichy.
ITR E-Filing in Trichy
There are clear benefits to submitting your return electronically, such as not having to deal with the burden of paperwork and saving time organizing it all. You can complete e filing of income tax by logging onto the secure website.
Income tax returns, wealth tax returns, TDS returns, and AIR returns can all be electronically filed at https://www.incometax.gov.in/iec/foportal/
You may also view form 26AS, file returns, check the status of your outstanding tax demand, CPC refund, rectification, and ITR-V receipt, use online application tools for PAN and TAN, e-pay your taxes, and even use a tax calculator on this official government website.
Read more about ITR e-Filing in Trichy.
Taxpayers and Income Tax Slab Rates
Income Tax slab under New Regime for FY 2024-25
| Income Tax Slab | Tax Rate |
| Up to Rs.3 lakh | Nil |
| Above Rs.3 lakh – Rs.7 lakh | 5% |
| Above Rs.7 lakh – Rs.10 lakh | 10% |
| Above Rs.10 lakh – Rs.12 lakh | 15% |
| Above Rs.12 lakh – Rs.15 lakh | 20% |
| Above Rs.15 lakh | 30% |
Note: New income tax rates are optional
Income Tax Slab (Old Regime) for individuals who are less than 60 years old
| Income Tax Slab | Tax Rate |
| Up to Rs.2,50,000 | Nil |
| From Rs.2,50,001 to Rs.5,00,000 | 5% |
| From Rs.5,00,001 to Rs.10,00,000 | 20% of the amount exceeding Rs.5 lakh |
| More than Rs.10,00,000 | 30% of the amount exceeding Rs.10 lakh |
*An additional cess of 4% will apply to the tax amount calculated above.
Depending on the age of the individual, the three categories that individual resident taxpayers are divided into are mentioned below
– Individuals who are less than the age of 60 years old.
– Senior citizens who are above 60 and below 80 years of age.
– Super senior citizens who are above 80 years old
Senior and Super Senior Citizens Income Tax Slabs (Old Regime) as Follows
| Income Tax Slabs | Rates (above 60 years old and below 80 years of age) | Rates (above 80 years old) |
| Up to Rs.3,00,000 | NIL | – |
| Up to Rs.5,00,000 | 10% | NIL |
| From Rs.5,00,001 to Rs.10,00,000 | 20% | 10% |
| More than Rs.10,00,000 | 30% | 20% |
Income Tax Calculation
The amount of income tax you have to pay is determined by the tax slab you belong within and it can be calculated using an income tax online calculator or manually. A salaried persokn’s salary has Basic Pay, House Rent Allowance (HRA), Transport Allowance, and other allowances such as Conveyance Allowance.
Some parts of such payments like Leave Travel Allowance (LTA) and reimbursement for mobile phone bills are tax free. If you stay on rent and HRA is part of your salary then you may enjoy exemption on it. Moreover, a maximum standard deduction of Rs. 75000 is permitted on top of these exemptions for filing an Income tax return in Trichy.
Advance Tax
Calculating tax liability beforehand and paying the taxes to the government accordingly is called advance tax. There are specific deadlines for the advance tax payments. These deadlines are listed below:
| Due Date | Advance Tax Payable |
| On or before 15 June | 15% of advance tax |
| On or before 15 September | 45% of advance tax |
| On or before 15 December | 75% of advance tax |
| On or before 15 March | 100% of advance tax |
Important Income Tax Dates 2024
The important dates to remember in FY 2024 –25 are mentioned in the table below:
| Important Dates | Task Must be Completed |
| 15 March 2024 | Due date for the fourth installment of advance tax for FY 2023-24. |
| 31th January 2024 | Individuals must submit their proof of investment |
| 15th June 2024 | Due date for the first installment of advance tax for FY 2024-25. |
| 31th July 2024 | Due date to file ITR by Individual / HUF/ AOP/ BOI (books of accounts not required to be audited) |
| 15th September 2024 | Due date for the second installment of advance tax for FY 2024-25. |
| 30th September 2024 | Submission of audit report (Section 44AB) for AY 2024-25 for taxpayers liable for audit. |
| 31th October 2024 | Due date to file ITR by Businesses (Requiring Audit) |
| 30th November 2024 | Due date to file ITR by Business firms requiring TP report |
| 15th December 15 | Due date for the third installment of advance tax for FY 2024-25. |
| 31st December 2024 | Due date to file Revised/Belated ITR |
Income Tax Payment Details
Income Tax Collection
Three main methods are used by the government to collect taxes:
– Discretionary contributions provided by citizens such as advance tax and self-assessment tax to some banks.
– Tax spotted from salary amounts each month, most often referred as taxes deducted at sources (TDS).
– Taxes Collected at Source (TCS).
The Income Tax Department (IT Department), which falls under the Department of Revenue of the Ministry of Finance, is in charge of keeping an eye on the revenue collected from the annual Union Budget as well as the revenue tax, expenditure tax, and other financial acts.
The Central Board of Direct Taxes (CBDT) is the primary authority for formulating and implementing the policies related to income tax return. The Board is also responsible for its enforcement through the use of the Income Tax Department.
The function of the IT department does not end with merely collecting taxes; it also includes the containment and prevention of Income tax online fraud activities.
Income Tax Forms List
| ITR Form Name | Description |
| ITR-1 | Individuals with Income from Salaries, One house property, other sources (Interest etc.) |
| ITR-2 | For Individuals and HUFs not having Income from Business or Profession |
| ITR-2A | For Individuals and HUFs not having Income from Business or Profession and Capital Gains and who do not hold foreign assets |
| ITR-3 | For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship |
| ITR-4 | For individuals and HUFs having income from a proprietary business or profession |
| ITR-4S | Presumptive business income tax return |
| ITR-5 | For persons other than, – (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7 |
| ITR-6 | For Companies other than companies claiming exemption under Section 11 |
| ITR-7 | For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F) |
| ITR-V | The acknowledgment form of filing a return of income |
Income Tax Refund FY 2023-24
In the event that you have remitted more income tax than your liability requires, you may be eligible to file an application for Income tax return online for the overpayment of tax.
Say, for instance, where a payer has applies a TDS of Rs. 40,000 has been deducted by the employer, and as per the party’s estimates provided, the TDS for the FY 2023-2024, the liability will only be Rs. 35,000, in this certain case the excess Rs. 5,000 which has been deducted from you will be eligible for you to claim the refunds.
Lastly, another instance when one can apply for a tax refund is when one is taxed over and above the limit without considering the available deductions, and one has not been able to file a claim for tax saving investments. In addition, it is possible for the individuals to view the income tax refund status on the web pages of the Income Tax Department’s website during tax filing online.
Income Tax Saving Investments
Investment options
Under Section 80C, mutual funds like Equity Linked Savings Schemes (ELSS) are eligible for a tax benefit. The ELSS has greater advantages when it comes to profit-making and has a shorter lock-in period than fixed deposits and PPFs. Insurance plans connected to the market are called Unit Linked Insurance Plans (ULIPs). Tax deductions are available for the ULIP investment,and Income tax registration is required to avail these benefits.
Insurance
Education Loan Deduction
Home Loans
Deduction for Interest Income
You can also consider the following options for reducing tax on your income
- Fixed Deposits also known as FDs – Invest your money and enjoy interest on your deposit while at the same time working to lessen your tax burden with a 5 year lock if FDs.
- National Savings Certificates (NSCs): Thanks to NSCs, you can safely invest without worrying about market risks associated with investments. You can even invest a minimum of Rs. 100 for a period ranging from five to ten years. Investment in NSC has tax benefits also.
- Provident Fund (PF) – Enhancing one’s contributions to their PF account will help one avail lower taxable income too.
Income Tax Deduction Section List
Deductions for your taxable amount are available under various sections of the Income Tax Act 1961. Deductions must be mentioned in the appropriate ITR form when e-filing income tax returns.
Section 80C: Only individuals and HUF are eligible for deductions under this section. This clause permits an exemption from taxes on up to Rs. 1.5 lakh in expenses and certain investments, such as NSC.
Section 80CCC: Payments made to LIC or any other authorized insurance firm under a sanctioned pension plan are deductible under this provision. The individual must take out a pension policy for themselves, up to a maximum of Rs. 1.5 lakh, from their taxable income.
Section 80CCD: Deductions under this section relate to the contributions made by the assessee and the employer to the New Pension Scheme. The deduction is similar to the contribution and is up to a maximum of 10% of his salary. Sections 80C, 80CCC, and 80CCD allow for total deduction of Rs 1.5 lacs. However, this limit of Rs. 1.5 lacs is exclusive of the amount contributed by the assessee under section 80CCD to the Notified Pension Plan.
Section 80D: Section 80D – This section deals with Income Tax deduction on premiums paid for health insurance. An individual can take a health insurance policy on himself/herself, his/her spouse, dependent children and parents (including non-dependent) for a maximum of Rs 15,000. In case, the insured is a senior citizen, an additional deduction of Rs. 5, 000 is allowed. Any member of a HUF can take an insurance policy and a standard deduction of Rs. 15,000 is given as well as an additional deduction of Rs. 5,000. Deductions can also be claimed by individuals of a HUF up to a maximum of Rs. 2.0 lakh.
Section 80DDB: This provision allows the assessee, a family member, or any member of a HUF to deduct medical costs incurred in the course of treating a sickness or other ailment as listed in the rules (11DD).
Section 80E: This provision addresses the deductions that apply to interest paid on student loans for Indian education.
Section 80EE: First-time homebuyers can save money on taxes under this law. Individuals whose first house purchase is valued at less than Rs. 40 lakh and whose loan amount is Rs. 25 lakh or less are covered under Section 80EE.
Section 80RRB: This section allows for the claim of deductions for income received from royalties or patents. If a patent is registered under the Income tax Act and Patents Act of 1970, income tax savings of up to Rs. 3.0 lakh are possible.
Section 80TTA: This section talks about the tax reliefs regarding the interest earned on deposits in post offices, cooperative banks, and savings bank accounts. Individuals and HUFs can claim a deduction on interest income to the extent of Rs 10,000.
Section 80U: When a disabled person presents their disability certificate, they are eligible for a flat income tax reduction. Amounts up to Rs. 1.0 lakh may be exempt from taxes based on the degree of disability.
Section 24: This section deals with interest on loans taken for constructing/networking housing which is tax-exempt. Apart from those deductions allowed under section 80C, 80CCF & 80D, an extra amount not exceeding Rs. 2.0 lakhs can be claimed as a deduction each year. This is applicable only on self-occupied properties. There are also tax exemptions for properties which are let out, that is 30% of rent received and paid municipal taxes.
Income Tax Registration FAQs
The best auditor in Trichy is often considered to be Auditor Shiva for his expertise and professionalism. He offers comprehensive auditing and financial services. Clients appreciate his thorough and reliable approach.
An income tax return is a form that a taxpayer must submit to the Income Tax Department. It includes information on an individual’s income and taxes paid for the period of the financial year. The Income Tax Department issued seven different ITR forms based on the taxpayer’s category, income source, and total income.
Everyone must file their income tax return (ITR) offline or online at the e-filing portal, a process also referred to as electronic filing, with the exception of senior citizens. With Auditor Shiva, filing income tax returns offline or online is smooth and simple.
Yes, deducting TDS and filing a tax return are two different legal requirements. According to the Income Tax Act, you should pay income tax on your taxable income(TDS). On the other hand, you have to file income tax return to pay all applicable taxes. When applying for a loan or visa, the income tax return is also a very helpful document.
Income Tax Return Forms Overview
There are seven forms: ITR 1, 2, 3, 4, 5, 6 and 7.
- ITR-1 to ITR-4 apply to individuals and HUFs.
- ITR-5 applies to partnership firms, LLPs, AOP, BoI, AJP, Estate of deceased, insolvent, business trust, and investment fund.
- All companies should file ITR-6, except for companies claiming exemption from charitable or religious property.
- Auditor Shiva will help you determine the correct ITR form.
The easiest way to get your tax refund is to file a complete income tax return by the deadline. As you file your return, you can review the total amount of advance tax payments made on Form 26AS.
As per the Income tax Act, if your total income exceeds ₹2.5 lakh for the given financial year, you are required to file an income tax return in India.
Individuals use different ITR forms (ITR-1 (SAHAJ) and ITR-2, designed for different income sources and complexity levels, to file their personal taxes.
The general deadline for individuals filing ITR-1 and ITR-2 without a tax audit is July 31st of the assessment year following the fiscal year in question.
Fees for late filing of submissions made between July 31, 2024, and December 31, 2024, there will be a penalty of Rs 5,000. Smaller taxpayers may be subject to a lower penalty of Rs 1,000 for filing after this deadline if their total income is less than Rs 5 lakh.
Aadhar Card, PAN Card, bank account information, Form 16, Form 26AS, receipts for tax exemptions or deductions, bank interest statements, capital gains statements, and records related to foreign assets and income are the required documents for filing an ITR.
After assessing a taxpayer’s income tax return, the Income Tax Department will formally notify them with an income tax notice of assessment. The taxpayer receives notification of the amount of tax due or refundable through the notice of assessment.
Yes, filing ITR in case of loss is for your benefit only. With online ITR filing you can carry forward the losses to some future year to set off against future profits.
In Trichy, several auditing firms and professionals are recognized for their expertise and quality services. One of the top auditors in Trichy is Auditor Shiva, known for his extensive experience, client-centric approach, and adherence to high standards of accuracy and integrity in auditing practices.
To get income tax registration in Trichy, you can approach Auditor Shiva. They can assist you with the registration process, ensuring compliance with all relevant regulations and requirements.