Filing your income tax for the first time? Don’t worry—it’s not as complicated as it seems! You could easily navigate the process with the right understanding of key terms. Let’s go over them.
Your Gross Total Income includes your salary, capital gains, property income, business profits, and other sources like lottery winnings or investment earnings. Next, we’ll touch upon Deductions, which help lower your taxable income. These can be house rent allowance, health and life insurance, interest on education loans, and more. Finally, you will learn about your Net Taxable Income. This is what’s left after tallying the deductions from your gross total income.
In this video, we’ll also talk about what’s known as the Previous Year and the Assessment Year. For example, if you’re filing taxes in FY2023-24, that is the assessment year, while the previous year is FY2022-23. Next, you’ll learn about TDS (Tax Deducted at Source) and how it applies to certain payments, such as salary or bank interest. Finally, we will discuss your Income Tax Return (ITR) and how you could report your income and taxes with the help of Form 16.
Now that you know these tax terms, you might be able to file your ITR without breaking a sweat!
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