Income Tax Basics.

Income Tax is a tax levied on the total income of the previous year of every person. A person includes an individual, Firm, Company, Association of Persons (AOP) etc. Income Tax is considered as direct tax as it is levied directly on the income of the person.

Income Tax return is the format in which the assessee is required to furnish information relating to his total income and tax payable.

The following persons are required to file Income Tax returns

1. Firms and Companies

2. Persons other than a company or firm whose total income in India exceeds the basic exemption limit.

3. A resident other than not ordinarily resident who at ay time during the previous year

The income tax returns are required to be filed within due date.