A tax that governments impose on financial income generated by all entities within their jurisdiction. By law, businesses and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public.
Who must pay Income tax in India?
The government of India imposes an income tax on taxable income of all persons including,
- Individuals
- Hindu Undivided Families (HUFs)
- Companies Firms
- Association of persons, body of individuals
- Local authority and
- Any other artificial judicial person
Levy of tax is separate on each of the persons. The levy is governed by the Indian Income Tax Act, 1961. The Indian Income Tax Department is governed by Central Board of Direct Taxes (CBDT) and is part of the Department of Revenue under the Ministry of Finance, Govt. of India. Income tax is the key source of funds that the government uses to fund its activities and serve the public.
How to calculate the tax that one has to pay?
To calculate one’s income tax amount, one has to just click on the link given below and then accordingly fill in the categories given on the page with their income amount and instantly get the amount for which they are liable to pay the tax.
How and where to pay the Income tax?
After calculating the income tax, remaining tax due can be paid via online deposit:
1. To pay taxes online the taxpayer will select the relevant challan i.e. ITNS 280, ITNS 281, ITNS 282 or ITNS 283, as applicable.
2. Enter its PAN / TAN as applicable. There will be an online check on the validity of the PAN / TAN entered.
3. If PAN/ TAN is valid the taxpayer will be allowed to fill up other challan details like accounting head under which payment is made, name and address of TAN and also select the bank through which payment is to be made, etc.
4. On submission of data entered a confirmation screen will be displayed. If the taxpayer confirms the data entered in the challan, it will be directed to the net-banking site of the bank.
5. The taxpayer will login to the net-banking site with the user id/ password provided by the bank for net-banking purpose and enters payment details at the bank site.
6. On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.