How to pay taxes on your income?
Hello, my ladies! We talk of women’s independence, women’s liberation, women’s employment, and women empowerment. Most of the women are working these days. They are earning a position in huge companies or are running their own startup with high grace. It is amazing to see women achieving so much and are no more a pile on.
Even the ladies who are house makers are educated enough to run either house if they wish to. We are no longer a dependent gender anymore. We know how to earn our bread, make it, and eat it. But there is one thing for which most of us look up to our fathers or husbands or brothers for help, that is filling our Income Tax Return. Isn’t it?
As soon as the financial year is about to end, we reach for help when it is about paying taxes. Not good ladies. Why are you dependent on this on anyone. You must do it yourself. So this time we decided to guide you through it so the next time you will be completing the tax formality by yourself. So concentrate on this step by step guide that we have made for you:
Know and update yourself
Filling your Income Tax Return might not be the simplest task but also not something that you can’t do. If you don’t know even a bit about tax then start reading about it. Every year new policies are introduced so you must know all of them. With new budgets every year, policies tend to change.
It is also important to know about the important terms of ITR like the income bracket you belong to, TDS, exemptions that apply to you and the deductions you can claim. It is very important to know about your country’s income tax policies. Remember, if you are well knowledgeable about something, you can never go wrong with it. It is best to reach out to your country’s official ITR site for all the information.
Know your income
After you have read about all the policies and the important terms and forms of ITR filling, its to know your income. Look at your pay stub for the ‘year to date’ income. If you have more than one job or more than one source of income, add all up. The incomes you have to consider are income from house property on rent, income in the form of dividends or interest on a savings account, long term or short term capital gains, income from lottery or betting, the compensation received if any. Make a sum of all the income you have received from anywhere within one financial year.
Know your form
When you visit the ITR site of the government, you will find several forms to file your taxes. Salaried employees must file ITR 1 form which comes with some guidelines that you should read before calling yourself eligible for that category. You also must have a copy of form 16 with you. Along with these, there are other forms like form W2 that details your earnings, form 1099 -DIV for interests of investment, etc. that you must read before filing your ITR.
Claim deductions and exemptions
To help you save money, the government lets you claim deductions and exemptions. Some of the common guideline for this is:
- Investments made under Section 80C in instruments like Public Provident Funds, Tax Saving Fixed Deposit, National Savings Certificate, the premium paid on life insurance policy, and repayment of housing loans.
- Interest earned on savings accounts under section 80TTA up to a certain limit that is subject to change.
- Interest paid on home loan under Section 24.
- A medical insurance premium paid for self, spouse, children or dependents under Section 80D.
- Donations paid to the approved body under Section 80G, 80GGA, 80GGB, and 80GGC.
- Rent paid can also be claimed under Section 80GG if it has not been claimed anywhere else.
There are many other such deductions that depend upon how you spend your money throughout the year.
Mind your deadlines
Having your documents arrived by January gives you 2 months of time to file your ITR. The usual due date of filing your ITR is April 15. Plan out well in advance when you are going to do the job. It is always better to get the job done well in advance instead of delaying it. And the added benefit is that if you own a refund then you will also receive it soon.
So ladies this time you will be paying your taxes on your own without any help. But since it is your first time, you must get your forms checked before submitting them. All best for filing your first ITR.
Do leave your comments below and let us know if we were able to help you.