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Arrange these 5 important documents before filing income tax return Income tax returns have begun to be filed amid the Corona crisis. If you are also preparing to file your return, then gather the necessary documents first. This will help you in filing returns and there is no possibility of mistake. The Income Tax Department has also made several changes this time. If in doubt anywhere, do not forget to consult the tax expert. We are giving information about your necessary documents here.   1. Form-16 If you are employed, then this is the most important document for filing returns. This form verifies TDS (tax deducted at source) deducted from the salary of the employee. This also shows that the institute has deducted TDS and submitted it to the government.   2. Certificate of income from interest This year, in the return form, taxpayers also have to disclose the source of their interest income such as giving them information of interest income earned from savings account, fixed

Liability to pay advance tax As per section 208, every person whose estimated tax liability for the year is Rs. 10,000 or more, shall pay his tax in advance, in the form of “advance tax”. In this part you can gain knowledge on various provisions relating to payment of advance tax by a taxpayer. Person not liable to pay advance tax As discussed above, every person whose estimated tax liability for the year is Rs. 10,000 or more is liable to pay advance tax. However, a resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession is not liable to pay advance tax. Illustration Mr. Kumar is running a provision store. The turnover of the store for the financial year 2020-21 amounted to Rs. 1,84,00,000. He wants to declare income under section 44AD at 8% of the turnover. He does not have any other source of income. Will he be liable to pay advance tax? ** Mr. Kumar satisfies the crit

1. Specified Financial Transactions: SFT Transactions Section 285BA of Income Tax Act, created responsibility to report Specified financial transactions popularly known as SFT.  As per Section    285BA of Income Tax Act, Any of the following transactions can be prescribed as Specified financial transactions: transaction of purchase/ sale/ exchange of goods or property or right or interest in a property; or rendering any service; or transaction under a works contract; or transaction by way of an investment made or an expenditure incurred; or taking or accepting any loan or deposit Under any of the above categories, the department may prescribe different values for different transactions to be reported by different persons. Provisions of reporting of SFT have been prevailing since a long time. As per changing scenarios and requirements, various transactions have been added to this list over the period of time to prevent taxpayers from understating their taxable Income. 2. Cha