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All the persons on whom Income Tax is applicable  are

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“Person” has been defined under Income Tax Act, 1961 as:
an individual,

A. Hindu undivided family,
B. Company,
C. Limited liability firm,
D.  firm,
E. one-person company,
an association of persons or a body of individuals, whether incorporated or not,
a local authority, and every artificial juridical person, not falling within any of the above category.
The Income Tax Department identifies the person by their PAN i.e. Permanent Account Number.

The Income Tax Act, 1961, and the Income Tax Rules, 1962, obligates citizens to file returns with the Income Tax Department at the end of every financial year.[2] These returns should be filed before the specified due date. Every Income Tax Return Form is applicable to a certain section of the Assessees. Only those Forms which are filed by the eligible Assessees are processed by the Income Tax Department of India. It is therefore imperative to know which particular form is appropriate in each case. Income Tax Return Forms vary depending on the criteria of the source of income of the Assessee and the category of the Assessee.

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Income Tax Return is the form in which assessee files information about his Income and tax thereon to Income Tax Department. Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. When you file a belated return, you are not allowed to carry forward certain losses.

A charitable or religious trust has to get registration by filing Form 10A along with following documents:

 

1. Certified true copy of trust deed

2. Documents evidencing the creation of trust

3. Copy of accounts for the previous 3 years immediately preceding the year in which application is made, if applicable.

 

Maintenance of accounts by certain persons carrying on profession or business under section 44AA

 

Every person has to maintain books of account and other documents as may enable to calculate total income in accordance to provisions of the Act.

 

  • Daily Voucher such as Cash receipt voucher, Cash Payment Voucher, Bank Payment Voucher, Bank receipt Vouchers

  • Purchase Bills

  • Sales Bills

  • Debit Note

  • Credit Note

  • Inventory Registers

  • Party Ledgers

  • Fixed assets Registers

  • Investments Registers

  • Bank Statements

  • Bank Pass Book

  • Confirmation of Accounts

  • Production Flow Chart

  • Stock Register

  • Audited Annual Accounts

  • Tax Audit Report

  • Details about related Party Transactions

  • Electricity Bills

  • Water bills

  • Other utilities bill

  • Contract note related to Investments

  • Import or export related papers such as clearing and forwarding bills, bill of entry, custom duty payment challan, Invoice, exchange rate etc.

 

 

 

  1. Every person also has to keep followings along with the details furnished in Point 1 above. 

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  • TDS Return copy

  • TCS Return copy

  • Annual Return copy

  • Service Tax Return copy

  • Excise duty Return copy

  • CST/VAT Return copy

  • Other Statutory Returns copy

  • Copy of payment challan of all statutory obligations

  • Certificate of exemption for TDS

  • Other certificates related to exemption or tax benefits under different provisions of the Act.

 

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  1. Every person has to keep the followings documents, such as:

 

  • Memorandum and Articles of Association, if applicable

  • Partnership deed, if applicable

  • Trust deed, if applicable

  • Limited Liability partnership deed, if applicable

  • Registration Certificates, if applicable

  • Import export code number certificate, if applicable

  • Excise Registration number certificate, if applicable

  • Service Tax Registration number certificate, if applicable

  • CST / VAT Registration number certificate, if applicable

  • Shop & Establishment number certificate, if applicable

  • Professional Tax number certificate, if applicable

 

 

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  1. Every person, who avails the loan facilities, has to keep in records the following, wherever applicable:

 

  • Loan agreement with financial institution or bank

  • Loan confirmation letter

  • Loan disbursement letter

  • Repayment of loan receipts

  • Loan closure letter

 

 

In conclusion, Income tax also known as direct tax is levied directly on a person’s income and paid directly to government. On the other hand, Indirect tax is levied on commodities and services and paid through the supplier to government as per the respective provisions in respective acts. Every “person” as defined in Income Tax Act, 1961, has to keep all such documents as proofs of each and every transaction related to his/her Income and expenses and to justify to the government that the Taxable Income as shown is correct and accurate. Tax, thus computed on this taxable income, is also fair and correct. In case, there is any doubt regarding the computation, Income Tax department may ask for the production of any details along with the documentary proof to justify the computation.

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