Know all about Income Tax
An income tax return is a formal document filed with the government, typically the tax authority, to report one's income, expenses, and other financial information for a specific tax year. This document is used to calculate the amount of income tax owed or to claim a refund if too much tax has been withheld or paid during the year. Here's a comprehensive overview of income tax returns: 1. Purpose: The primary purpose of filing an income tax return is to fulfill one's legal obligation to report income and pay taxes to the government. Additionally, it allows taxpayers to avail themselves of certain deductions, credits, and exemptions that can reduce their tax liability. 2. Types of Income Tax Returns: Individual Income Tax Return : Used by individuals to report their personal income, deductions, and tax liability. In the United States, this is commonly referred to as a Form 1040. Corporate Income Tax Return: Filed by businesses to report their earnings and calculate corporat...