Every citizen with income above 2.5 lakhs is supposed to pay income tax to the government. The governing body, which facilitates and sees over all the activities related to income tax happening all over the country is the Income Tax Department of India. Before paying an income tax, a person files an income tax return with the income tax department. An income tax return is a form filed by an individual, which shows the record related to his income and any tax, which might be valid on the income. The tax return estimator very efficiently helps in calculating and evaluating the tax return. It is an online gadget, which helps you do the same. You need not necessarily consult your account to calculate your tax return. It is an easy tool to use.
After the above-mentioned points, here, comes the income tax refund. A tax refund is a reimbursement to the person who paid tax in case of an excess tax or amount being paid to the government, either national or state. It is basically the repayment of the already paid money. However, the amount of repayment depends on certain factors. Online tools are available for calculating tax refund. These are used to do the tax refund estimate. These online tools are really very easy to use. They are not at all difficult to operate. All you need to do is fill in the given and fields.
If a person does not pay any taxes, he may face the consequences. The consequences can be serious, severe and critical enough. These are as follows:
- Firstly, a person who fails to file the return can end up in jail. According to the tax laws, a person can end up in jail for a minimum of 3 years. Of course, the time period for staying in jail can extend.
- The income tax department can take legal action against you for not filing an ITR. They can initiate prosecution against you.
- In the worst-case scenarios, even your property can also be claimed.
- If a person fails to pay the tax within a given time frame, he will be regarded as a defaulter and as a defaulter, a penalty of Rs 5000 or more will surely be charged on him by the appointed officer.
However, if a person provides justified reasons for not paying the taxes, he can be exempted and excused from paying any kind of penalties.
The Tax Calculator is a worthwhile tool, which can be effortlessly used to evaluate your taxes. You can use this gadget in your homes surrounded by a comfortable environment.
Taxfyle’s tax calculator is a free and easy to use. It is useful, effective and beneficial while calculating the taxes. It helps keep you and your business organized.
Paying income tax is every citizen’s duty. The money obtained from the income tax is used for the development of the nation. The amount of tax that needs to be paid varies according to the income of a person in a financial year. Higher the income, the higher the tax.