Q.Definition of income for taxation of an Individual Assessee?
A.Income can be generated from many sources like- Salary, House property, Capital gain, Interest on FD and accumulated all is called Gross Income. This gross income is taxable if it exceeds the maximum exemption limit during the financial year. Nature of income is describing below
Income from Salary- The money you received during the financial year from your employer for rendering your job comes under salary income.
Income from House Property- The money you received during the financial year against rented out from your owned house comes under house property income.
Income from Other Sources- The money you received during the financial year from FD interest, Savings account interest is income from other sources.
Income from Capital Gain- The money you received during the financial year from the sale of shares, mutual funds, capital assets or house property comes under income from capital gain.
Income from the business & profession- The money you received during the financial year from your profession, freelancing or business comes under the head.
Q.What is Form -16?
A. Form- 16 is a TDS certificate issued by your employer. Whatever you earned during the financial year, your employer is required to deduct TDS as per your slab and deposit it to the Govt. If your income does not exceed the exemption limit, your TDS deduction will be NIL. TDS certificate is contained in two part- (i) Part A (ii) Part B.
Part-A: It fills with the details of employer and employee name, PAN & TAN details, address and TDS deduction. Part-B: It fills with details of salary paid, other income, deduction allowed and tax payable.
Q. Does it require me to keep ITR copy for a long period?
A.Yes, you need to keep ITR copy for 6 years. As per IT act scrutiny or legal procedure against you can be initiated within 6 years (time varies case to case) prior to the current financial year. So it is advisable to preserve ITR details for at least 6 years or as long.