The Art of Money by KG

What is Income tax ? Income tax needs to be paid by every Individual, Hindu Undivided Family (HUF), Association of Persons (AOP), Body of Individuals (BOI), Corporate firms, Companies, and all other persons that generate income. Income Tax is calculated on the income of a person in a particular financial year i.e. from 1st April of a year to 31st March of next year. For example last financial year was from 1st April 2015 to 31st March 2016. Also known as FY 2016 or FY 2015-16. One more term is Assessment year. It is immediate next year for any financial year. For FY2015-16, Assessment year will be 2016-17. Income tax slabs for FY 2015-16 For Men Below 60 Years Of Age Income Tax Slab Income Tax Rate Income upto Rs. 2,50,000 Nil Income between Rs. 2,50,001 - Rs. 500,000 10% of Income exceeding Rs. 2,50,000 Income between Rs. 500,001 - Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000 Income above Rs. 10,00

Dear Friends, Welcome back after a short break. I hope you got some insight about this financial world from my previous posts. Today I will take you through a journey which will help you to stay on the right side of Law. Yes, Income Tax department is keeping a serious vigil on each and every individual to stop any kind of mishandling of money. So it is our duty to file our Income tax returns on time to avoid any kind of issues in future. First and Foremost, What is Income Tax Return ? The simplest answer is: For a financial year, providing all information about the total income from all sources and the tax paid on those to the Income Tax department. If your total income in FY 2015-16 is more than ₹ 2.5 lakh you must file a tax return . Do remember that this income is before allowing   deductions . You must file a tax return if your gross income exceeds ₹ 2.5 lakh, whether or not you have any   tax payable. It is compulsory to file your return electronically if your incom