Online Tax University

FD interest or fixed deposit interest income gets taxed as per the income slab rates of individual taxpayer. Banks or post offices deduct tax or TDS when the aggregate interest income on all fixed deposits exceeds Rs 40,000 per financial year. The limit is Rs 50,000 in case of senior citizens.

Tax is a responsibility. It’s a mandatory payment made by the people to the government. The taxes paid by us are used by the government to pay for various services such as street lighting, roads, police, etc., that are offered to us. The amount is not only used for infrastructural development but is also used for paying state and central government bodies. Income tax is the amount paid by an individual on the total income earned in India. As per the Income Tax Act, anyone who earns an income beyond a certain threshold is liable to pay income tax to the Central government, subject to exemptions.

Taxes can be classified into two different types: direct and indirect taxes. Direct taxes, as the name suggests, are the taxes paid directly to the government. Any individual whose annual income exceeds the maximum exempt limit is liable to pay direct tax as per the Income Tax Act. This includes income tax, corporate tax, capital gains tax, etc.

On the other hand, indirect taxes are imposed on the purchase of goods and services and are collected by those who sell the product or offer the service. These taxes are not directly paid by an individual to the government. For example: GST, excise duty, customs duty, etc.

Filing an income tax return is no longer a tedious task that it used to be. Here’s a step-by-step guide that will help you file income tax without any hassles –

Step 1: First visit the income tax department website i.e., https://incometaxindiaefiling.gov.in.

Step 2: Log in or register to file your income tax return.

Step 3: Choose the ITR of the relevant assessment year.

Step 4: Fill in all the details and validate. The details include name, address, PAN, mobile number, e-mail ID, bank details, and other taxable income.

Step 5: The next step is to calculate tax. If any tax is due, then make sure you pay it immediately.

Step 6: Now click ‘SUBMIT’

As per Income Tax Act, 1961, all companies, whether domestic or foreign are liable to pay corporate tax on the income earned by them. According to the law, a domestic company pays tax on its net income whereas a foreign company pays tax only if the income earned by them is earned within India. The net income of the company that is charged under corporate tax includes