Income tax returns (ITR) filing: What is salary income?
Income tax returns (ITR) filing: The central government had extended the date for income tax returns filing from July 31, 2018 to August 31, 2018. While that is good news for all those who have waited till the last moment to file their ITR, but for those who are still struggling to even figure out whether the money they have earned is qualified as salary income, it has come a blessing. It is a chance to get their tax life organised!
Income tax returns (ITR) filing: Everyone who is earning an income must pay tax. Those earning under a certain amount need not do so, but going forward, it could lead to some problems. So, even those who do not fall in the taxpaying scale, should ideally file their ITR returns.
Income tax returns (ITR) filing: So, what is salary income? Section 17 of the Income-tax Act defines the term ‘salary’. However, not going into the technical definition, generally whatever is received by an employee from an employer in cash, kind or as a facility (perquisite) is considered as salary.
Income tax returns (ITR) filing: Now, that is the definition that the Income Tax department swears by. So, what should you do next? Either figure out by yourself whether your income falls into any such bracket or get help from those who can solve this problem for you.
Income tax returns (ITR) filing: However, before you rush to do that, know that you need a PAN card too. This is a permanent account number that you will have to quote while filing your ITR.
Income tax returns (ITR) filing: Last, but not the least, you must be totally honest and transparent about the numbers that you are filing. Fudging numbers has a nasty way of birthing a backlash that will haunt you for the rest of your life.