A taxpayer is an individual or corporation who pay taxes annually on their earning as per the provisions of the Income Tax Act. Once you file income tax returns and disclose your earnings, it becomes legal. Your legal income is a precursor for easy refunds, hassle-free and transparent loans, tender applications, and business funding or investments.

ITR or income tax returns filing is a summary, detailing all your declared incomes through any number of sources and the corresponding taxation amount or liability that needs to be paid to the Government or the amount refundable to you depending on the individual situation. While some individuals earlier faced difficulty in filing returns, various taxpayer services make filing income tax return an easy task.

Some of the necessary documents for tax filing are Form 16 which showcases Tax Deduction at Source via TDS certificate that is provided to you by your employer. You can furnish your salary details and TDS amount as applicable in this document. For your IT filings, you must procure interest certificates from your bank or the post office as applicable, detailing the interests you may have earned through your deposits, savings accounts, or any other source of income.

Aadhaar details, bank information, loan and investment data, PAN card, etc. are among the requisite documents needed for filing ITR. You can also file for tax returns online through the official portal by creating a profile on the e-filing website.

Other forms like 16 A/B/ or C have individual and specific requirements which need to be submitted while filing for tax.
  • Form 16A declares incomes earned through recurring or fixed deposits as and where applicable.
  • Form 16B is for home or landowners. This declares the TDS amount that was deducted as and when these property owners sell off the said property.
  • In case of earnings through lease or rental payment, you need to fill the details in Form 16C while filing.

World Bank reports show that in 2016 the population of the Indian subcontinent was almost 132.4 crores. As per an economic survey, India has only 7 income taxpayers for every 100 voters; the number is 100 in Sweden and 60 in the USA.

While average citizens do bear the burden of indirect taxation (GST), the number of direct taxpayers is very low. Taxpayers are the backbone of any economy, and it is our duty to pay timely taxes to help the Government build a better country.

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DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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