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Why are there different types of ITR forms and which one is for me?

Depending on the type of income, the category the taxpayer falls under, and the income the taxpayer makes, the relevant form must be chosen. TaxBuddy makes it super convenient for you to get through all of these processes in a jiffy.

What are the ways to reduce my total taxable income?

There are various sections as per the income tax act under which you can claim deductions against your total income (up to a defined limit) in a financial year such as Section 80C, 80CCD etc.

Why should I file my ITR?

As a responsible and compliant citizen, one is required to file tax returns. The benefits and importance of doing so are enlisted below:

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• To avoid a penalty: The tax department levies heavy fines on individuals who do not file and pay their taxes. As per section 234F, a fine of Rs.10,000 will be levied for failing to file tax returns.
  

• To obtain a loan from a bank: When applying for a loan to purchase a house/car or medical treatment, the ITR for the previous three years is a must.
  

• To obtain VISA: Embassies of some foreign countries like the UK, US, Canada, and Australia ask for ITR receipts of the previous year to process VISAs. It helps to assure them that you are capable of taking care of yourself while you reside in those countries.
  To make up losses faced in the next financial year: You cannot carry forward any losses to the next financial year unless you file an ITR. Thus, it is important to file the returns so that you can claim losses in subsequent years.
  

Steps for company formation in India

Effective from 23rd Feb, 2020, a new integrated Web Based form ‘SPICE+’ pursuant to the Companies (incorporation) Amendment Rules, 2020 has been introduced by Ministry of Corporate Affairs (MCA) which will facilitate: –

Allotment of Director’s Identification Number (DIN) of the directors

> Approval of Name of the company

> Approval of PAN/TAN of company

> Incorporation of the company

> Registration under EPFO

> Registration under ESIC

> Registration under Profession Tax (Maharashtra)

> Opening of Bank Account

> Allotment of GSTIN

Timely tax planning helps to avoid many costly financial mistakes which cannot be undone. However, even if you are late in planning your taxes, you can take some simple last-minute financial steps. The steps will help you minimize your risks and ensure that the investments are aligned with your financial requirements.

Check your tax liability for the year

The first thing you need to do is to assess your income tax liability for the year. The question of tax planning will arise only if there is a net tax payable by you.

While calculating the income tax liability, you need to consider all the incomes you have earned & all the deductions available to you under the income tax law. Some of the readily available deductions that people miss are as follows:

1. Payment of school tuition fees

2. Life and medical insurance premium

3. House Rent Allowance

4. Donations to approved institutions

Make sure that for the deductions that you wish to claim, you have proper proof/ documentation like a rent agreement, donation receipts, premium certificate, etc. This will help you in case there is a tax assessment in the future.