Benefits of Filing Income Tax Returns Professionally.
An individual with the following income should opt for a Basic Package of Income Tax Return:
Salary income - You get Form 16 from your employer wherein all the details of your salary and tax deducted is explained. Your employer is supposed to deduct the applicable taxes on your salary plus other income and pay them to the government. However, there might be several factors that your employer was not aware of and tax paid by your employer and actual tax payable may differ. If you have switched your employer during the year, you might have more than one Form-16 with you. In all these scenarios, you are supposed to calculate your correct taxes and file your return claiming the refund or paying the shortfall as the case may be.
House Property - The income tax department provides a tax deduction of up to INR 2,00,000 for interest and deduction of up to INR 1,50,000 for principal paid towards the home loan. If you are jointly holding the house and jointly taking a home loan, you can get tax benefits for both joint owners. If you have rented your house property, your effective tax rate from rental income may be less than 23% due to the 30% standard deduction benefit provided by the government. If you are owning more than two house properties, it is mandatory under the law that your third property will be deemed let out and its deemed rental will be considered as your income. House property for Income Tax purposes includes commercial space, shop or showroom, residential property, any building or land attached to the building. Income from all these assets will be taxable under the head of "Income From House Property."
Capital Gains - Any profit or loss arising from the sale of capital assets such as residential property, office space, any other real estate, listed or unlisted equity shares, etc are taxed under the head of Capital Gains. Based on the duration of assets held by the seller, capital gains are categorised under two broad heads namely, Short Term Capital Gains and Long-Term Capital Gains. The government has provided for many deductions and exemptions from Capital Gains based on the use of profits received from such sales, period of holding of asset, type of assets such as real estate or shares or securities, expenses incurred to sell the assets. Indexation benefit is available to the taxpayer for long term capital assets sold thereby reducing the tax liability.
Income From Other Sources - Any income by way of interest, dividend, non-business commission income or any other income which is not covered under the four specific heads is taxable under the head of "Income from Other Sources" Section 80TTA provides for deduction of saving account interest income up to INR 10,000.
Individuals who are doing business or professional activities such as freelancing, consulting, trading, Manufacturing, supply of goods or services, Intraday Trading, Future & Option Trading should check our service for INCOME TAX RETURNS FOR BUSINESS.
