Frequently Asked Questions (FAQs)
What is Income Tax Return Filing?
✅ The Income Tax Return (ITR) is a form that must be submitted to India's Income Tax Department. It details the individual's earnings and the taxes that must be paid on them throughout the year.
Who must file an income tax return?
✅ Income tax returns must be filed. Indian citizens and individuals who earn an income and fall under the tax jurisdiction of the Indian government are required to pay income tax. Income tax returns must be filed in accordance with Section 139 (1) of the Income Tax Act.
Who is eligible to file ITR 2?
✅ Who is eligible to file ITR-2 for the fiscal year 2021-22? Do not have income from business or profession profits and gains, as well as income from business or profession profits and gains in the form of interest or salary.
What is TDS in the context of income tax?
✅ The purpose of TDS was to collect tax from the source of income. A person (deductor) who is required to make a specific payment to another person (deductee) must deduct tax at the source and remit it to the Central Government, according to this concept.
How much is the duration to verify an income tax return?
✅ The CBDT has reduced the ITR verification time limit to 30 days (down from 120 days) from the date of return submission. The new rule will apply to online returns filed on or after August 1, 2022. The time limit for ITR verification remains 120 days for income tax returns filed up to July 31, 2022.
Is it mandatory to file an ITR?
✅ Filing an income tax return is required if an individual's gross total income exceeds Rs 2,50,000 in a fiscal year, according to tax rules. Individuals who do not have taxable income must still file an income tax return if certain conditions are met.
What is the bare minimum for paying income tax?
✅ If your income is less than Rs. 2.5 lakh, you are exempt from filing Income Tax Returns (ITR).
How is the monthly tax calculated?
✅ Income tax is calculated on a monthly salary by calculating the taxable salary and tax payable for the year. At the start of the fiscal year, your employer will calculate your total taxable income, including your salary. The employer will compute the available deductions and the net taxable income based on such taxable income.
How long will it take for my income tax refund?
✅ After you have filed your IT returns and verified them, the average time for receiving your income tax refund is 20-45 days after the ITR has been processed. If it takes longer than expected, you should contact the Centralised Processing Centre (CPC). Online tracking of income tax refunds is possible.
What are your top three reasons for filing a tax return?
✅ Reasons for filing a tax return: a) It facilitates loan processing in a simple manner.
b) It assists you in claiming any carried forward losses.
c) It enables you to obtain TDS refunds.
