Filing tax return is an activity that happens every year where every resident is required to file his or her returns. Whether employed or unemployed. It is never a choice. However, these rules regarding tax returns differ in every country. In some countries, the law requires everyone to do that. In others, only people above a certain income level are required to file their returns. Many people sometimes find themselves in trouble with the law after breaking important regulations associated with filing tax return. Tax refunds are whereby you are refunded for having paid more taxes than you should have paid. Therefore, it is important to know everything associated with tax returns and refunds.
For tax returns:
The documents required.
The names of the documents issued vary in every country. I will refer to common documents you need to have in the USA.
- Form 16 – This is a form issued to you by the employer and contains your gross and net income.
- Form 16A- This form is given by people who have paid you during the year after having deducted tax.
- Bank account statements- This form is issued by banks where you have an account to show the interest you have earned from your savings.
- Property details- If you own any property that brings you income, the details of the total amount earned are got by taking receipts.
- Contract Notes- This assists in getting the amount earned from shares throughout the year.
- Tax challans – This is a document that contains details of taxes paid when you have made advance payment.
Your income sources.
Before filing your returns, you should know all your sources of income. This includes monthly salary, interest in banks, gains from shares and money from businesses such as rental houses among other things. See more.…Read More