About Income Tax

All the earning individuals in India who are above the age of 60 years and are generating an income of more than 2.5 lakhs are liable for paying tax in India. Both salaried individuals and businessmen are liable to pay income tax in India. Listed below are the different groups of individuals who are income taxpayers in India:

• All the earning individuals who are below the age of 60 and has income greater than 2.5 lakhs
• Senior citizens above the age of 60 who have an income of more than 3 lakhs
• Corporate firms owner generating income, despite them making said profit in that year
• Individuals who are generating income from their house property, qualify for a minimum income of more than 2.5 lakhs
• NRI who earn more than 2.5 lakhs in India in a given financial year

It is mandatory for all Indian citizens who have specified earnings as mentioned under the tax slab. There are also several benefits of filing income tax returns. Listed below are some of the benefits of filing income tax returns that you need to be aware of:

• Filing income tax works as proof of income and is recorded by the Income Tax Department of India. The ITR returns are submitted to the government of India and thus are considered official wordings.
• If you file income tax returns on a regular basis, then it becomes easier for you to get loans. The reason behind this is that for getting loans, your ability to return it back is considered and the same is justified based on your income. Thus, with ITR filing, the process of getting loans becomes comparatively easier and hassle-free.
• ITR filing is also mandatory for applying for a visa as well as for getting your credit card issued.

So, make sure to file your income tax returns on time so that you can enjoy the above-mentioned benefits. The process of filing income tax returns is quite simple.

If you have just entered the taxable income category or are still wondering about effective ways for saving income tax, then proper tax planning is what can help you. With the right tax planning, you can save a lot on taxes as well as effectively plan for future goals. So, in the section below, we have enlisted some of the best ways to do tax planning:

• Start early: Many times, people start planning for tax savings only when a financial year is coming to an end. However, this should not be the practice, as it is very important to start planning for tax savings early to avoid any confusion.
• Identify your goals: If you are planning to buy any investment tool for saving tax, then first and foremost identify your goals. As you have identified your future goals, it becomes easier to invest in the right plan as well as enjoy tax savings.
• Consider the risk factors: While investing in any investment tools in order to save taxes, you need to be extremely careful in considering the risk factors involved. For instance, if you are investing in ULIP, then the risk comparatively is higher. So, be careful about the risk associated with different tax-saving investment options.
• Choose from a variety of tax-saving investment options: There are a number of tax-saving investment options available that can easily help you in saving taxes. With so many tax-saving investment options available, it is important to pick the right plan and effectively do tax planning.

Furthermore, to plan for tax savings in an even better way, you can also contact a consultant or professional who will provide you with the right assistance.