The general consensus is that income taxpayers are the good lot, the ones who pay their bills on time and are model citizens who uphold the virtues and morals of the nation.
What no one speaks about is that what actually drives them to pay their tax, and how many actually get their share back through income tax return. The fact is that tax is something that is part of the societal makeup, so it is not something that is always done by choice.
Those Who File Returns are The Actual Winners in This Game
But the actual winners here are those who are aware of what the advantage of filing income tax return is, and who actually go ahead with the same. After all, tax preparation software (both free and paid) is abundant and not as complicated as one might imagine.
Many people who start off with jobs are not told about or don’t know what and how to file their income tax return status. They don’t even know what it entitles them, and what its importance is.
So here’s a brief lowdown on what income tax and income tax return for the uninitiated.
What is Income Tax?
Income tax is a form of tax that is imposed on individuals/groups/entities (called taxpayers) that depends on what their income or profit (known as taxable income) is.
In many instances, authorities call tax levied on business organizations as corporate or companies tax. In a partnership firm, the tax is imposed not on the entity itself but on each partner and their share of profits.
Taxation Reforms Are All Modern Additions to Assist Governance
A modern concept, taxing helps make sense of economies, accounts, receipts expenses, profits and helps maintain an orderly society based on the maintenance of records.
The precursor to tax can be seen in the form of practices like tithing, or an offering of fruits, which was prevalent in ancient times.
Criticism Has Been Abound as Well.
If there is any criticism of this modern practice, it has been that individuals/organizations have found ways to maneuver the rules and find ways to either pay less tax than they are eligible to or completely avoid doing so.
This leads to lawmakers having to add extra rules and legislation in order to close said loopholes, which could make the whole process complex and cumbersome. And the fines that are levied on defaulters are such that the more privileged are able to afford them without hassle, which obviously means they are at an advantage.
What is Income Tax Return?
Income tax return is a kind of refund or repayment that is made to taxpayers by those within the income tax jurisdiction when their tax liability is less than the actual taxes that they have paid.
This refund is normally paid at the end of the tax year. It is also termed as income tax rebate.
There are many criteria under which someone is eligible for income tax return:
- If more tax has been paid as self-assessment by the taxpayer whereas he is accountable to pay a smaller amount of tax through regular calculation
- If the TDS (Tax Deducted at Source) that is crossed off by the employer of the taxpayer or the bank is more than the latter’s accountability through regular taxation
- If an income of the taxpayer has been taxed twice (in an overseas country, where the Indian government has agreed to waiver off double taxation, and India as well)
- If there were some investments that could have provided tax benefits to the taxpayer but were not declared by him/her
In India, people can claim income tax return by filing their return of income. The due date for filing their IT return forms is normally the 31st of July each year unless there is an extension of some kind.
How Much Can One Expect Back as IT Refund?
To find out how much income tax return someone is owed, they need to calculate their actual tax liability.
If taxes that were paid are more than what one’s tax liability, then the excess amount will be refunded to the person by the tax department.
There are many online sites that help people calculate how much tax they were liable for, and whether they are eligible for getting any kind of return.
So How Does Someone Who Has Applied for a Return Check The Status in India?
Once someone has filed their income tax return and gotten it verified, the IT department will begin processing the same. As expected, the liable amount is only paid once the processing is complete. here are the following steps:
Without login credentials:
- Click on the ITR Status option on the extreme left corner of the screen, under the services tab
- A new page will appear, where the PAN number needs to be filled, along with ITR acknowledgment and a CAPTCHA code. Then click submit.
- The following page will display the status of the income tax return on the screen.
With login credentials:
- After keying in the ID and password on the homepage login option from the above link, a page will appear with an option to ‘view returns/forms’.
- Select that option, and in the next screen that appears, select the tax returns option and year and click submit.
- The following page will display the status of the process.