When we talk about income tax or of filing tax returns, it is often assumed that a large portion of people will be dishonest and shall not file for taxes. And even if they do, it shall not be of the amount in appropriate proportion of their income. While, some of these allegations are true, a lot of them are also baseless. In fact, a majority of the population is not even aware of all the items that ought to fall under the tax filing category.
Income tax refers to the tax that has to be paid by individuals or by corporations to the government for their incomes. Such incomes may be either through service, business, agriculture, allowances, property and income from any other such sources. However, most people fail to realise beyond the first two to be sources of income. They may not necessarily be avoiding paying taxes. It may be just that in the absence of a valid tax calculator, they do not know what sectors fall under the category of tax filing.
The government has devised a clever way to get rid of this problem. In its website for income tax, there has been provided a tax calculator. Once we fill in the annual year and out net income along with certain other details, the amount of tax that we should be paying is neatly calculated for us. It is a great relief to many people. A lot of people are not aware and so have to keep running from pillar to post to know the exact amount of their tax filings. The tax calculator helps avoid such hassles. Also there are several other websites that carry out the same procedure in a little more detailed manner. Instead of asking for the net income amount, they ask for the individual incomes from the various sources - salary, business, landed property, agriculture etc. They also ask details about the various deductions from the taxable income and also if any advance tax has been deposited. Further, on the basis of knowledge of whatever exemptions the tax filer is privileged of, they calculate the due net income tax. The advantage of having these detailed calculators is that they give a fairly accurate estimate.
If people utilise these tax calculators properly, it shall be beneficial for both the people and the government. The former shall know the exact amount due and the latter shall not run out of funds or blame the public of dishonesty.
Income tax refers to the tax that has to be paid by individuals or by corporations to the government for their incomes. Such incomes may be either through service, business, agriculture, allowances, property and income from any other such sources. However, most people fail to realise beyond the first two to be sources of income. They may not necessarily be avoiding paying taxes. It may be just that in the absence of a valid tax calculator, they do not know what sectors fall under the category of tax filing.
The government has devised a clever way to get rid of this problem. In its website for income tax, there has been provided a tax calculator. Once we fill in the annual year and out net income along with certain other details, the amount of tax that we should be paying is neatly calculated for us. It is a great relief to many people. A lot of people are not aware and so have to keep running from pillar to post to know the exact amount of their tax filings. The tax calculator helps avoid such hassles. Also there are several other websites that carry out the same procedure in a little more detailed manner. Instead of asking for the net income amount, they ask for the individual incomes from the various sources - salary, business, landed property, agriculture etc. They also ask details about the various deductions from the taxable income and also if any advance tax has been deposited. Further, on the basis of knowledge of whatever exemptions the tax filer is privileged of, they calculate the due net income tax. The advantage of having these detailed calculators is that they give a fairly accurate estimate.
If people utilise these tax calculators properly, it shall be beneficial for both the people and the government. The former shall know the exact amount due and the latter shall not run out of funds or blame the public of dishonesty.