Tax is a part of your income that is paid to the govt. every year and govt. uses this money as fund for the growth and development activities. The govt. needs taxes to run the nation judiciously and for it, govt. needs to collect taxes from the eligible citizens and in everyone’s life paying taxes is an integral part. Now the taxes are collected in different forms- state taxes, central govt. taxes, indirect taxes, direct taxes and many more.
Types of Taxes
Taxes are mandatory fees or can be said as financial charge levied by the govt. to collect the revenue for public works providing best facilities and the infrastructure or to fund different programs of public expenditure. There are different types of taxes- Direct Tax, Indirect Tax, Sales Tax, Income Tax, Goods & Services Tax (GST), Value Added Tax (VAT) etc. All these taxes are calculated by different types of tax tools like tax calculator etc.
What is Income Tax & how it is calculated?
Income tax is the most common type of tax that is paid by the eligible citizens to the govt. A part of eligible citizen’s income is paid to the govt. every year and it is used by the govt. to accelerate the growth and developmental activities across the country. An income tax assessee is an individual who is liable to file taxes and fall in slab of payable income tax.
The individual who is having regular income is exempted from paying taxes, if his or her income is below the threshold level as determined by the govt. from time to time or the income from exempted sources like agriculture. The income tax is calculated by an income tax calculator and it is very quick, easy, simple and accurate.
Income Tax Return
The tax return calculator determines the tax return accurately. The tax assessee gets the refund after filing the ITR (Income Tax Return). If the assessee fails to pay the taxes, either wholly or partially on the principle amount of interest, he will be considered as the defaulter. The assessee is also considered as a defaulter, if he or she doesn’t reveal the actual earning or income, a fine of 100% to 300% can be imposed on defaulter. An assessing officer can ask the assessee to file the return or furnish all details of assets and liabilities in writing, if he or she doesn’t respond to the income tax notice sent to them.
Paying taxes is an integral part of every citizen’s life as it helps in the upliftment of every section of the nation, by providing various services and provisions. There are many types of taxes such as VAT, GST, service tax, sales tax, entertainment tax etc. that can be used for govt. funds that is used for the development activities in the country. There is various tax saving options available like tax saver fixed deposits, PPF, EPF, Mutual Funds etc. There are majority of tax saving schemes available under income tax Act.