Explaining Income Tax Returns (ITR) in Mumbai

One major downside of growing up is that you have to deal with Income Taxes. The issue isn’t the taxes, but the lack of knowledge about it. It would not have been a problem if schools taught us all about basic finances earlier in our lives. Nonetheless, It is not too late to learn about taxes. In fact, you can save a lot on taxes by doing so.

In this article, we highlight vital information about Income Tax Returns (ITR). You will learn how Income Tax Returns in Mumbai work. Before we explain ITR, you must first understand the basics of income tax.

So let’s get right to it.

Basics of Income Tax

Income tax is a way for the central government to earn revenue so that they can develop the country. This revenue comes from a percentage of your income. That percentage depends on what tax bracket/tax slab applies to you. (We will discuss the details of tax slabs below in “Old Tax Regime vs. New Tax regime”). Basically, India’s tax system works on a Progressive Taxation Mechanism, which essentially means, the more you earn, the more income tax you pay.
Income can be from multiple sources. For example, your salary, profits from your business, profits from your capital investments, and profits from other sources like FD. All this together makes your total income.
Moreover, citizens of India need to pay taxes for the income generated by sources in the country and from outside the country as well, but non-resident citizens only need to pay tax for the sources generated in India.
But how does the government know that we are paying the right amount of taxes? This is where Income Tax Returns come into play.

What is Income Tax Return?

Income Tax Return (ITR) is a form that needs to be filled and submitted to the Income Tax Department of India. This form contains information about your total income and the tax rate applicable to it during the year. ITR is filed/submitted for the whole financial year that is from 1st April to 31st March of the next year. It is supposed to be filed before a fixed due date given by the government.
Nowadays, you can file ITR online or hire a CA to do that for you. Income Tax Returns in Mumbai are made easy by MyTaxAdvisor. We will take care of all your tax problems.