Though in India, teens under 18 years old don’t need to file income tax. It is a job that they need to follow after attaining 18 years of age if they have any source of income. However, there are certain things that they should know before they are directly introduced to the system. It will help them to have a better understanding of the income tax system of India.
Teens nowadays are very smart. They can avail of information on the internet. However, it is your duty to consult the Income Tax Consultant in India so that they have some authentic information.
Not every teen need to pay the tax as most of them pursue their academic goal during that time. Certainly, there are a few exceptions who start early in their career and have to file income tax. However, whether you have to pay the tax or not; it is always better to stay aware of the things.
So, here are the 5 most important things about the income tax in India that every teen should know.
- Why you have to pay income tax?
The tax is the percentage of your income that you have to pay directly to the government. It is the responsibility of a citizen towards the country. The minimum age of paying income tax is 18 whereas the maximum age is 60 in case he or she earns more than 3 lakh per anum.
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- How you can pay income tax?
According to the Income Tax Act of India, these entities like Hindu Undivided Family, Body of Individual, Association of Persons, Local Authorities, Corporation Firms, Companies, and All Artificial Juridical Persons are liable to pay tax. To pay it, you can consult the Income-tax Consultant in India to get assistance in the payment procedure. There are three types of tax payment; the first one is TDS (Taxes Deducted at Source), TCS (Taxes Collected at Source) and Voluntary payment by taxpayers into designated Banks.
- How does the government use tax money?
The infrastructure works that are going on for the development of the country are all done from the money of taxpayers. The government of India uses the fund in the essential services like defense, judiciary, police, public health apart from development infrastructure.
- How they can save the income tax?
There are so many ways to save the income tax as well. For example, you need to do some investments and savings under the Govt approved sections. You can also take the help of the Income Tax Consultant to get the best suggestion in this regard.
- What type of earning will fall under income tax?
The government has pre-decided certain income tax slabs to categorize the tax system. It completely depends on the taxable income you have after reducing the investments and savings. The slabs change every year during the time of the budget. In case, your income falls under a certain slab, you have to plan your investment accordingly.