Taxes are the charges levied by the governing bodies. They are to be borne by the individuals or bodies on whom the tax incidence occurs. Taxes may be collected in form of impositions on income,wealth,import,duty,sales,custom,etc. Taxes serve as a source of revenue to the Government ultimately leading to the smoother development of infrastructure and the economy as a whole.Types of Taxes
Direct Taxes- Those taxes that are directly collected from the people or bodies on whom they are ultimately imposed. For example, income tax is one such tax directly collected from the person who earns the income.
Indirect Taxes- These taxes are collected from a person other than the person ultimately responsible for paying the tax. For Example,Sales tax is first collected by the retailer from the customers and then paid to the authorities.
Tax Return
It is a document containing details about all the incomes, deductions and tax liability of the individuals/firms. It is a time bound process,in which the person who is furnishing the details called asses see lists down all the necessary details about income from business,profession,house property,capital gains and so on. Now this paper will also contain various other allowable deductions,tax paid and will ultimately the outstanding tax liability. Documents are also to be submitted to show how much tax has been already paid. Thus, tax return is a written statement submitted to the tax authorities for the payment of tax obligations. There are two options available to the individuals to file their return of income:
- Electronic filing;
- Physical filing
Amended Tax return
Taxpayers are asked to file an amended tax return to rectify errors located on a previous income tax return. Errors may be related to wrong disclosure of facts or error in calculation of tax liability. It is important to keep a check on the return filed. As,if later on some discrepancy arises,default payments have to be paid along with legal prosecutions.
Last Date of Tax Return
Last due date for filing of tax return is April 15th, of every year. A return delivered to the service by U.S. mail after the due date is considered timely filed,given the point that the stamp of US postal services bears the date prior or same as the due date.
