Individual Income Tax Filing in Mumbai 

You must know that according to Section 2(24) of Income Tax (IT) Act, 1961, “Income” means and includes “Profits and gains, dividends, allowance or any capital gains and the tax levied on these incomes are known as “Income Tax”. Income Tax is the most important source of income and revenue for the Indian Government. There are two types of taxes, direct tax and indirect tax. Therefore, since income tax is the tax which is directly paid to the government by an individual, hence it is one of the types of direct tax.

Who is an Income Tax Payer?

Every citizen who is below 60 years of age and if their income exceeds 2.5 lakhs are liable to pay income tax. Additionally, if a person is more than 60 years but has an income of more than 2.5 lakhs, then he/she will be liable to pay.

Heads of Income tax

According to Section 14 of the Income Tax (IT) Act, 1961, there are main 5 types of heads of income tax. They are:

a)      Income from Salary – Under this head, an individual will qualify for income tax, if there is employer-employee agreement. The person must receive remuneration or salary based on a contract of employment.

b)      Income from House-Property – Under this head, Section 22 to 27 of the IT Act provides for the calculation of the income from the house, property, land, which an individual owns.

c)       Income from Profits and Gains from Business – Income under this head will be chargeable for the profits on sale of certain license, etc.

d)      Income from Capital Gains – Income earned by selling or transferring of a capital asset leads to one of the heads for income tax.

e)      Income from Other Sources – According to Section 56(2) of IT Act, interest income from banks, lottery, etc. are included in this head.

Exceptions to the heads of income has been mentioned under Chapter 3 of the IT Act which includes Agricultural income, etc.

Penalties and Offences

According to 271F of IT Act, if an individual fails to furnish income tax return information before the relevant assessment date, then the Assessing Officer may direct that individual to pay Rs. 5000 as a penalty or fine.

Benefits of ITR Filing in Mumbai 

Some of the benefits of Filing Income Tax Return on time are:

·         Since, ITR Filing is an authentic and the most important document which helps them to provide Easy Loan Approval from banks.

·         Income and Address Proof

·         IT Return filing avoids hefty fines and penalties levied on them due to non-filing at the scheduled time.

·         Some of the countries like United States, United Kingdom, etc. ask for ITR Receipt for Quick Visa Processing.

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Looking for Income Tax Consultant in Mumbai? 

If you need professional assistance and an expert income tax consultant in Mumbai who can help you in your income tax filing process, contact Legalo now.

Aston Building, 10th Floor, Lokhandwala Complex,

Andheri West, Mumbai, Maharashtra 400053

+919167688129