Income tax is tax levied on the income of a person by the government as per the provisions in the Income Tax Act, 1961. It is levied on the income earned during the year starting from the financial year, 1st April ending on 31st march.
An Income tax Return is a statement of Income earned to calculate tax liability and payment or refund of taxes to the government. Thus the purpose of filing the return is to report our income and taxes paid to the government.
Every person is liable to pay tax in India if his Income is more than the income notified by the government in the slab rates. The definition of person includes;
The payment of income taxes can be made to the government manually i.e. cash/cheque in any designated bank branch or through e-payment. Payment should be made in Challan 280 in both the cases. The challan should be filled with the utmost accuracy as it is important for further processing.