- 28 May 2021
- ICICI Securities
How To File Your Child's First Income Tax
Here are the steps you need to follow to file your child's first income tax.
It can be safely said that income tax is a concept that most of us are aware of. But before we delve into the topic in detail, it is important to understand what all comes under the ambit of the word INCOME.
Corporates are levied with a Corporation or Corporate Tax that is a direct tax on their net income or profit the corporate enterprise generates from their businesses.
Each of us go through several common milestones in our lives - graduation, first job, marriage, family, to name a few. Similarly, paying income tax for the first time is a common achievement for many people.
When people think of tax savings, they usually think of Section 80C benefits, which can total up to Rs. 1.5 lakh in a fiscal year, and many people will stop there. There are, however, other ways to assert tax advantages and lower your yearly income tax bill.
Of the entire tax-paying population lot in India, the small chunk of its salaried taxpayers bears the highest burden. It is a known fact that the bulk of India's taxes come from its salaried class, the group that forms only a part of the country's taxpayers.
Most millennials believe that if their earnings are below the taxable threshold, they need not file an ITR (Income Tax Returns). That, however, is not the case. When you start working and making money, you must file an income tax return.
India's taxes are largely divided into two categories: direct and indirect taxes. Direct taxes get imposed on an individual's earnings and benefit earned from selling or transferring any commodity.
We all pay taxes in some or the other form-direct or indirect. When we buy a soap or a packet of chips from a store, we pay some tax indirectly. Our monthly salaries or income in businesses are also taxed, beyond a certain basic exemption limit. As citizens of this country, taxation is something we are all familiar with.
As you know, for filing your income tax return, various incomes need to be considered to eventually lead you to your final amount for tax payment. Two such incomes that we will look at are taxable income and gross income.
At the end of every month, you get your salary credit alert. For some of you, the amount you receive is minus the tax deducted at source (TDS) by the employer.
Here are the two methods that you can check your income tax refund status online.
As citizens of India, we all are duty-bound to pay our taxes. For all those who have incomes above a certain limit, there are tax slabs outlined by the government.