Income Tax Filing

Rahul files his income tax return for the first time, gathering documents and consulting a chartered accountant to understand deductions.

Meanings in Rahul, Chartered accountant, HR department

Key words and phrases

income tax returna form filed to report income and taxes to the governmentHe filed his income tax return before the deadline.

PAN carda permanent account number card used to track tax paymentsYour PAN card is required to file taxes.

Form 16a certificate from an employer showing salary and tax deductedThe company issued Form 16 to all employees.

deductionan amount subtracted from taxable income to reduce taxHe claimed a deduction for his life insurance premium.

taxable incomethe portion of income on which tax must be paidHis taxable income fell after claiming deductions.

refundmoney returned by the tax department if extra tax was paidShe received a refund after filing her return.

chartered accountanta qualified professional who handles accounts and tax mattersA chartered accountant helped him file the return correctly.

financial yeara twelve-month period used for financial and tax recordsThe financial year in India runs from April to March.

e-filingsubmitting a tax return online through a websiteE-filing has made the process much faster.

due datethe last date by which a return must be filedThe due date for filing is usually the 31st of July.

tax slaban income range that determines the applicable tax rateHis salary falls in the twenty percent tax slab.

exemptionincome that is not subject to taxHouse rent allowance is eligible for exemption.

capital gainsprofit earned from selling an asset like shares or propertyHe paid tax on capital gains from selling shares.

TDSTax Deducted at Source, tax cut directly from income before paymentTDS is deducted from his salary every month.

assessment yearthe year following the financial year in which income is assessedThis return is for the assessment year 2025-26.

tax bracketa range of income taxed at a particular rateA raise moved him into a higher tax bracket.

investment proofdocuments showing savings made for tax deduction purposesSubmit your investment proof to HR by January.

Section 80Ca section of tax law that allows deductions for specific investmentsPPF contributions qualify under Section 80C.

income tax noticean official letter from the tax department raising a queryHe received an income tax notice about a mismatch.

tax audita detailed examination of financial records for tax accuracyBusinesses above a certain turnover need a tax audit.

Useful sentences

Ask Have you filed your income tax return this year?
Answer Not yet, I'm still collecting my documents.
Ask Did you receive your Form 16 from the company?
Answer Yes, HR sent it to my email last week.
Ask What deductions are you planning to claim?
Answer Life insurance premium and my PPF contribution.
Ask Are you filing it yourself or through a chartered accountant?
Answer I'm consulting a chartered accountant this time.
Ask What is the due date for filing this year?
Answer It's the 31st of July, as usual.
Ask Which tax slab do I fall in this year?
Answer Based on your salary, you're in the twenty percent slab.
Ask Can I claim exemption on my house rent allowance?
Answer Yes, as long as you have valid rent receipts.
Ask How much TDS has already been deducted from my salary?
Answer You can check the exact amount in Form 16.
Ask What investments qualify under Section 80C?
Answer PPF, life insurance, and ELSS funds all qualify.
Ask What should I do if I get an income tax notice?
Answer Don't panic, just respond with the correct documents.

Dialogue

Chartered AccountantRahul, do you have your Form 16 and PAN card ready?

RahulYes, I have both. What about my deductions?

Chartered AccountantYou can claim your insurance premium and PPF contribution.

RahulGreat, will that reduce my taxable income?

Chartered AccountantYes, and you might even get a refund this year.

RahulThat would be great. Let's complete the e-filing today.

RahulWhich tax slab do I actually fall in this year?

Chartered AccountantBased on your salary and 80C investments, you're in the twenty percent bracket.

RahulGood to know. Should I worry about getting an income tax notice?

Chartered AccountantNot if everything matches your Form 16 and investment proofs.

Common mistakes

Saying "pay income tax return" instead of "file income tax return" — you file a return, not pay it.
Saying "my PAN number card" instead of just "PAN card" or "PAN number."
Saying "tax refund came" instead of "I received a tax refund" or "the refund was credited."
Saying "I am in twenty percent tax" instead of "I am in the twenty percent tax slab" or "tax bracket."
Saying "claim exemption of" instead of "claim exemption on" — exemption takes the preposition "on."
Confusing "financial year" and "assessment year" — the assessment year always follows the financial year.

Quick quiz

1. What is "Form 16"?

2. Submitting a tax return online is called ___.

3. Complete: "He claimed a ___ for his life insurance premium."

4. What does "TDS" stand for?

5. What is "capital gains"?

6. Which section allows deductions for investments like PPF and life insurance?

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