Income Tax Filling Company in Chennai

Income Tax is a form of tax that is imposed by the central government on income earned in an accounting year by companies and individuals. Taxes generate income for the state. The government uses these funds to develop infrastructure, offer health, education, subsidies for the agriculture sector or farmers, and in various welfare programs of the government. Taxes typically fall into two kinds, direct taxes and indirect forms of taxes. A tax that is directly assessed on earnings earned is referred to as a direct tax. As an example, income tax is a direct tax. Tax calculation depends on income slab rates in the financial year.

Direct Taxes can be broadly described as follows:

Income tax: It is the tax that either an individual or a Hindu Undivided family or any other taxpayer, besides companies, are required to pay on income earned. The law defines the rate at which this income must be taxed.
Corporate Tax: It is the tax that businesses pay on profits they earn from their business. In this case, a certain tax rate for corporations is imposed by the Income Tax legislation of India.

Who is responsible for paying Income Tax? Different types of Income Tax for Taxpayers The Income-tax Act has classified taxpayers to allow various tax rates for different taxpayer types.

Taxpayers are classified according to the following:

• Individuals
• Hindu Undivided Family (HUF)
• Association of Persons (AOP)
• Body of Individuals (BOI)
• Firms
• Companies

Further, Individuals are broadly classified into residents and non-residents. Resident individuals are liable to pay tax on their global income in India i.e. earnings earned in India as well as abroad. While those who are classified as non-residents are required to pay tax only on income earned in India. The status of residence has to be determined for tax purposes each fiscal year based on the individual's tenor of residence within India.

Income Tax Return Filling in Chennai:

The taxpayer is required to complete his income tax return each year using ITR forms that are prescribed by the department of income tax. The government has issued seven ITR forms by which the taxpayer can complete his tax return for income. The taxpayer must select the correct ITR forms and submit the tax return he earned.

Income Tax Forms:

ITR forms are: The 7 ITR types are

• ITR-1: Persons (residents) who earn income from a salary, one-house property, or other sources, agricultural income of less than Rs 5,000, and having an income total of up to 50 lakh rupees
• ITR-2: Individuals/HUFs that do not own any kind of business or profession that is any form of proprietorship
• ITR-3: Individuals or HUFs earning earnings from a profession or business
• ITR-4: Individuals/HUFs with an assumed income from professions or businesses.
• ITR-5 Firms that are partnerships or LLPs
• ITR-6: Companies
• ITR-7: Trusts

Documents required for filing ITR:
Form 16, Form 26AS, and Form 16A, evidence of tax-saving investment as well as bank account details are just a few of the essential information or documents you must be prepared to file your tax return. Additionally, the documents you're required to submit with for your return are mostly dependent on the source of your income.