What is the key difference between 'paying income tax' and 'filing income tax returns'?

"Paying income tax' refers to the act of settling the tax liability, while 'filing income tax returns' involves declaring all sources of income to the IT department. "Paying income tax' is mandatory for all citizens, while 'filing income tax returns' is only required for those with income exceeding a certain threshold. "Paying income tax' is done annually, while 'filing income tax returns' can be done at any time during the financial year. "Paying income tax' is done through banks, while 'filing income tax returns' is done through the employer.

Which ITR form is suitable for an individual who earns income from salary, interest, rental income from one house property, and has capital gains from investments?

ITR 1 ITR 2 ITR 3 ITR 4

What is the primary advantage of using ITR 4 for taxpayers engaged in business?

It allows taxpayers to claim a higher deduction for business expenses. It exempts taxpayers from paying advance taxes. It simplifies tax filing for businesses with complex revenue streams. It eliminates the need for maintaining detailed books of accounts and audits for eligible businesses.

What is the due date for filing income tax returns for individuals who are not required to undergo an audit?

June 30th July 31st August 31st September 30th

What is the penalty for failing to file income tax returns by the due date?

A fixed penalty of Rs. 2,000 A penalty calculated as a percentage of the unpaid tax Interest on the tax due, along with a penalty of Rs. 5,000 Imprisonment for a term not exceeding six months