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Income Tax Filing in Mumbai – Preparation, Filing, IT Returns, and Guide

 

The Indian government keeps changing the tax slabs for income tax. The individuals have to pay the tax if they are eligible for the same under the prescribed slab limits. There are two main types of taxes, i.e., Direct Tax and Indirect Tax. The income tax is known as the DIrect tax. The individuals pay the Income-tax directly to the government on the basis of income. The income tax and Corporate tax are the two direct taxes that the government collects from the individuals and entities directly. It is important to file the income tax returns and pay the taxes in the prescribed period. The government usually announces the due dates for income tax filing.

Basics of Income Tax

Income tax is the direct tax levied by the Indian government. The tax is divided into the slabs, which determine the tax liability percentage of the individuals and corporates. Any resident and non-resident is who has the income is liable for paying the income tax in India according to the slabs.

Income Tax Heads

The income heads are the categories in which the majority of the income sources are grouped. There are five income heads, which are used to group the income and then calculate the tax accordingly. Here are the five common income heads that any taxation professional will check before preparing your income tax return filing.

  • Income From Salary – Income from Salary for Salaried Professionals
  • Income From Other Sources – Income From Bank Savings, Term Deposits, Gifts, Winnings, etc.
  • Income from House Property – Income from Rented Property, i.e., House or Shop.
  • Income From Capital Gains – Income from the sale of property, shares, mutual funds, land, etc.
  • Income from Business Profession – Income from Business or Profession. Applicable for the Professionals and Freelancers like Doctors, Lawyers, Engineers, etc.

Income Tax Slabs in India

The income tax slab defines the rate of income tax applicable to the people falling in the slab. The slab defines the income group and the percentage of the tax the people are liable for. As of now, there are four income tax slabs in India, which define the taxation structure for individuals.

Tax Slab Tax Payable

 

Income Up to Rs. 2,50,000

Income Between Rs.2,50,000 to Rs.5,00,000

 No Tax Payable

5% of Taxable Income

Income Between Rs.5,00,000 to Rs.10,00,000 20% of Taxable Income
Income Above Rs.10,00,000 30% of Taxable Income

 

Filing Income Tax Return in Mumbai

It is important to file the income tax returns for the companies and the firms. It is only compulsory for individuals who are earning more than Rs.2.5 lakhs in India. If you are earning less than Rs.2.5 lakhs, then there is no need to file the income tax return in Mumbai. If you are exceeding the tax slab, then you should become serious about income tax filing. You should approach the tax professional for Income tax filing in Mumbai. With the income tax return filing services from Efiling.co.in, you can get your job done without any issues.

How to Register for Income Tax Filing?

Filing Income Tax is important for any salaried or professional individual. Hiding income information from the government is a punishable offense. That’s why it is important to file the income tax returns each year. To register for the income tax return filing in Mumbai or anywhere in India, you need to have the account on the official portal. The official portal URL is http://www.incometaxindiaefiling.gov.in/. you have to use the PAN card and other details to create an Efiling account. Also, you can hire the income tax return filing services from Efiling.co.in, and our tax professionals will set up an account for you.

Frequently Asked Questions on Income Tax Filing in Mumbai?

#Q1 – Who is Liable to File an Income Tax Return?

Any individual residing in India, earning Rs.2,50,000 or more through the legitimate sources, is liable for paying the income tax. The base limit or the basic slab is Rs.2,50,000/-. Anything more than that requires the individuals and the HUF members to pay the income tax and file the income tax return.

#Q2 – Can an Income tax return be filed without paying tax?

The income tax return has to be filed when you have already paid the liability in taxes. If you pay the tax return without paying the tax, it is known as a defective return. Although, if you have no tax liability, then you can file a NIL return on the official portal.

#Q3 – What is the last date of filing ITR for AY 2019-20?

According to the official circular from the Income Tax Department, the last date of filing ITR in Mumbai is July 31st. You have to follow the due date for the Accounting year 2019-2020 to avoid delay and fine for delay.

#Q4 – Is there any fine for not filing ITR?

Yes. According to Section 234F, you have to pay the fine up to Rs.10,000 for delayed tax return filing. The section defines the delayed fine ranges for the taxpayers. To avoid the fine, you should hire professional income tax filing services from Efiling.co.in.

#5 – Can I file ITR for the last three years?

Yes. You can file the ITR for the last three years with ease on the official portal. But, you have to pay the late fees for filing the returns for the last three years. It is better to file income tax returns on time.

#6 – Who is exempt from ITR?

Any individual residing in India, whose income falls below the prescribed tax slabs, is exempt from ITR. Although, you can file the NIL tax returns for keeping a good record.

 

Professional Income Tax Return Filing Services in Mumbai

Instead of wasting time on collecting the information about income tax filing in Mumbai, it is advisable to hire the services from Efiling.co.in. the tax professionals at Efiling.co.in will provide the tax return filing services in Mumbai. All you have to do is to collect the documentation, send it to our experts and we will handle everything for you. You don’t have to worry about it a bit, as we will file an Income Tax Return on your behalf. Even if it is your first time filing income tax returns, our tax professionals will help you file the returns without any issues.