As Benjamin Franklin so eloquently put it, ‘In this world nothing can be said to be certain, except death and taxes’. Any way you look at it, there’s no escaping the taxman. But stepping into the world of taxes can seem confusing and downright befuddling if you’ve never had to deal with them before. So, let’s see if we can figure out what it’s all about.
What exactly is Income Tax?
Income tax in India forms a huge chunk of the government’s revenue and has to be paid by every person generating an income. There are two distinct types of taxes: Direct and Indirect Taxes, which mushroom into an entire subset of different tax acts. Don’t let this overwhelm you. Instead, be diligent, pay your taxes where applicable and look for ways to save on your taxes where you can.
Filing your IT return online
Filing your IT return isn’t very complicated anymore, especially if you do it online. Thanks to modern technology, you can do it from the comfort of your home. Nowadays you can electronically file your returns via e-filing. That’s right. You can follow this step-by-step guide to E-file your IT Returns using just your computer and the internet. Isn’t that nifty?
Tips to save on tax and get some back
There are ways to save on tax and it would be wise of you to pay heed to some investment tips to save on your income tax. Get out there and see where you can invest your money to get some decent tax breaks. Mutual Funds and Insurance are popular investment instruments that can help you save money and probably earn you some much needed extra income in the long run.
Oh, and if you happen to have paid more in taxed than you should have, you can get back the extra money you paid by applying for an income tax refund. Follow the procedures required to claim your income tax refund and you can then go out for a nice dinner once the cheque arrives.
So always remember – Do your best to save on tax wherever you can and most importantly, try and pay your taxes on time!