People are usually very excited when they receive their income after working hard. The excitement however fades when they realize that some money has been deducted from their income as taxes. Filing tax returns is required of all people receiving income and paying income tax. The Income Tax Galt CA filing process can be daunting to a lot of people. The process is daunting because of the many forms to be filled which are sometimes confusing to someone who is new to the process. A clear understanding of the documents and forms required for filing returns helps you file returns accurately.
Here are the documents you should know of when undertaking the Income Tax Galt CA filing process:
Form 16
This form is given by employers at the end of every financial year. It has details of the income you have earned in the year and the taxes that have been deducted. This form is only compulsory when taxes have been deducted at source in the financial year.
Form 12B
This form has details of all your income package and fringe benefits received from the employer. This form is only given to those who have incomes above a certain threshold.
Form 16A
This form gives details about incomes you have received other than your salary and taxes deducted. This form has to be obtained for every source of income.
ITR-1
This is the most common and basic form for filing returns. It is used by all individuals with incomes from salary, pension and agriculture. This form is not used by individuals with business or rental incomes.
ITR-2
This is for individuals of Hindu origin and for all incomes apart from business incomes.
ITR-3
This is for individuals who are partners in a firm.
ITR-4
This is meant for individuals of Hindu origin who have incomes from businesses.
Before you start the income tax return filing process, it is important to ensure that you have all your documents. It makes the filing process easier and simpler. You must have your permanent account number ready when filing returns. This number is important because if you state the wrong number in your income tax return form, you could be penalized. All the documents relating to all your incomes and taxes throughout the year have to be kept well and incorporate the information correctly when filing the forms.
