There are two types of taxes that we pay to the government: One on goods and services we buy (called as indirect taxes like the G.S.T.) and the other on the income we earn (called as direct taxes like income tax).
Filing income tax returns is an exercise in which you:
1. Reveal your entire income to the Government
2. Calculate the tax you have to pay on it
3. Pay those taxes, and then,
4. Get refunds from the Government on stuff that was “exempt” from tax
It sounds simpler than it looks – and your Chartered Accountant will do most of the heavy-lifting for you – but here’s a sneak peek into the whole exercise.
Familiarize yourself with these basic IT terms
Go through this checklist of everything you’ll need to file your income tax returns.
Once you’ve identified your taxes, choose a way to file your returns.
Verify your returns! This process isn’t complete until you do.
Check this financial calendar for any upcoming tax deadlines (and extension dates)!