Nature of Freelancing Income Freelancing income is treated as professional or business income under the Income Tax Act. It is classified under the head “Profits and Gains of Business or Profession.” Freelancers may offer services in fields like writing, designing,...
Separate Tax Entity A Hindu Undivided Family (HUF) is treated as a distinct taxpayer under the Income Tax Act. It allows a Hindu family to file a separate income tax return in the name of the HUF. The HUF gets an independent PAN and enjoys its own exemption and...
Meaning of HUF for Tax Purposes A Hindu Undivided Family (HUF) is a separate legal entity for income tax purposes. It consists of individuals who are lineally descended from a common ancestor, including their wives and unmarried daughters. An HUF is recognized as a...
Taxability of Dividend Income Dividend income received by shareholders from Indian companies is taxable in the hands of the investor. It is classified under the head “Income from Other Sources”. The entire dividend amount is added to the total income of the taxpayer....
Meaning of DTAA DTAA stands for Double Taxation Avoidance Agreement, a treaty between two or more countries. Its purpose is to prevent the same income from being taxed twice in both countries. It applies to individuals and entities who earn income in a country other...
Meaning of Digital Signature A digital signature is an electronic form of a physical signature used to authenticate documents. In income tax filing, it is used to verify identity and confirm the authenticity of returns and forms filed online. It is based on encryption...
Purpose of Registration Registration on the income tax e-filing portal enables taxpayers to file returns, check refund status, respond to notices, and access various tax services. It is mandatory for individuals and entities to access their tax information online....
Meaning of Surcharge Surcharge is an additional tax levied on the amount of income tax payable. It applies to taxpayers with high income levels beyond certain thresholds. It is calculated as a percentage of the income tax and not on total income. Surcharge rates vary...
Meaning of E-Verification E-verification is the process of confirming the authenticity of your filed Income Tax Return (ITR) electronically. It replaces the traditional method of sending a signed physical ITR-V form to the tax department. It is a mandatory step to...
Yes, Refund Status Can Be Tracked You can track your income tax refund once your return has been filed and verified. The Income Tax Department provides regular updates on the refund process. Status can be checked online using your PAN and assessment year details. It...