The process of filing income tax returns requires a lot of documentation and calculation. It can be confusing for the layman to understand all the jargon and legalese. But with a little effort, you can make your tax declaration process smoother and easier. Here is a simple guide to help you do just that.
What Is a Tax Declaration?
A tax declaration is a form filled out to declare the various investments and expenses that you have made during a financial year. This helps your employer to ascertain your tax liability and accordingly deduct TDS from your salary. You need to submit these documents by a deadline that is generally in January or February.
For individuals, taxable income is calculated by taking gross income minus “above the line” deductions such as contributions to retirement plans, qualified health insurance premiums and property taxes and exemptions such as home loans or HRA payments. After this, you can choose to itemize below the line deductions such as mortgage interest and alimony payments to arrive at your adjusted gross income (AGI). Similarly, for corporations, taxable income is determined by adding up all of the company’s earnings and subtracting the company’s cost of goods sold and other business expenses.
The Department has provided detailed specifications to software providers ACS, Computer Information Concepts, Cott Systems, IT Stability and Tyler Technologies so that their current products can be modified to communicate with MyDec. These vendors may continue to use their own software programs, however, they must register with MyDec in order to issue electronic stamps. Steuererklärung