{"id":7779,"date":"2025-07-15T07:29:55","date_gmt":"2025-07-15T07:29:55","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&p=7779"},"modified":"2025-07-15T07:29:59","modified_gmt":"2025-07-15T07:29:59","slug":"income-tax","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax\/","title":{"rendered":"Income Tax"},"content":{"rendered":"

Definition: Income Tax<\/a> in India & How to File ITR?<\/strong><\/h2>\n\n\n\n

Income tax<\/a> in India is the money people and businesses give to the government based on their earnings.<\/p>\n\n\n\n

A Income Tax Return (ITR)<\/strong> is a form you fill out each year. It tells the government:<\/p>\n\n\n\n

    \n
  1. How much money you earned.<\/li>\n\n\n\n
  2. How much tax you already paid.<\/li>\n\n\n\n
  3. If you owe extra tax or the government owes you a refund.<\/li>\n<\/ol>\n\n\n\n

    Steps to file ITR simply:<\/strong><\/h3>\n\n\n\n
      \n
    1. Collect documents<\/strong>
      Get your income proof like salary slips, bank statements, and       Form 16<\/a> (from your employer).<\/li>\n\n\n\n
    2. Choose the right ITR form<\/strong>
      Pick the form that fits you—e.g., ITR‑1 for a salaried employee or ITR‑2 for those with investments or rent income.<\/li>\n\n\n\n
    3. Fill in your details<\/strong>
      Enter income amounts, deduct investments (like insurance or pension), and calculate your total taxable income.<\/li>\n\n\n\n
    4. Claim deductions<\/strong>
      Use Sections like 80C (for savings, PPF, investments), 80D (for health insurance), etc., to reduce your tax.<\/li>\n\n\n\n
    5. Pay any tax due<\/strong>
      If you owe tax, pay it online using Challan 280 before filing.<\/li>\n\n\n\n
    6. File online on the IT portal<\/strong>
      Use the Income Tax Department’s e‑filing website. Upload your form and documents.<\/li>\n\n\n\n
    7. E‑verify your return<\/strong>
      After filing, confirm it via Aadhaar OTP, net banking, bank account, or by sending a signed ITR‑V to CPC, Bengaluru.<\/li>\n\n\n\n
    8. Get the acknowledgment<\/strong>
      You’ll get an email\/SMS once it’s processed. If you get a refund, it will reach your bank account.<\/li>\n<\/ol>\n\n\n\n

      Why it matters<\/strong><\/h2>\n\n\n\n