Are you an individual taxpayer and going to submit a tax return for the income year 2020-21? And looking for a practical guide for tax return preparation so that you could calculate your tax liability as well as prepare tax return?
Then the “Tax Return Preparation: Complete Guide 2021” book is perfect for you. How an individual taxpayer will calculate his tax liability from income received has been shown in this book using an example which will help you to calculate your own tax liability after reading the book.
The book is divided into nine chapters and an appendix section consisting of tax return forms. In the first chapter, you will get an overview about who is eligible to file tax return, when you shall pay minimum tax with return, slab-wise tax rate etc. And a separate chapter is included where you will get a full list of required documents that shall be required to prepare your tax return and shall be included during filing tax return. Where you will get these required documents is also discussed in this chapter.
While calculating tax liability, you will notice tax rebates on investment allowance which help to reduce tax burden significantly. And that’s why tax rebates are very important for taxpayers to save tax legally. You will get a complete list for areas of investment or donation which are considered for investment allowance as per tax law. And also shown tax rebate calculation using example during calculation of tax liability.
Tax Liability Calculation
Tax liability calculation shown in chapter four using an example. In this chapter, separate lessons have been included for how a salaried person shall calculate tax liability, government employee tax calculation, tax calculation on income from house property, tax calculation by a teacher and tax calculation by a doctor has been discussed using an example.
Besides the above income, other sources of income like interest received from savings certificates or interest income from FDR has also been discussed in this chapter. You will be able to calculate your tax liability during reading this chapter. Based on the tax liability calculation and documents collection, you have to prepare the tax return form which is eligible for you.
Tax Return Form Fill-up
There are several prescribed tax return forms for the individual taxpayers for tax filing within the deadline. But which form is applicable for you?
In the appendix section of the “Tax Return Preparation: Complete Guide 2021” book, you will see three tax return forms. If you are salaried person then “IT-11UMA” is applicable for you. Otherwise, you have to use the “IT-11GA2016” tax return form. However, any taxpayer may use this long tax form. And another new single page tax return form “IT-GHA2020” is applicable for the individual person who shall be required to file return mandatory for having TIN or below the taxable income BDT 400,000. Though there are other conditions applicable for this tax return form. All these are discussed in chapter five of this tax preparation book.
When you will see the tax return form in the appendix section and read details about how to prepare the return form, you will see separate statements “Assets, liabilities and expenses statement” and “Lifestyle Statement”. You have also to prepare these statements with your tax return.
Assets, liabilities and expenses statement
“Assets, liabilities and expenses statements” and “lifestyle statements” are not mandatory for all taxpayers. In both cases, there are several conditions that shall be met. However, if taxpayers wish, may submit voluntarily.
When you will go to prepare assets, liabilities and expenses statements then the family expenses which relate with the lifestyle statement shall be prepared. But both statements are not easy. In chapter six and seven of this book, you will get detail guideline about how to prepare assets, liabilities and expenses statements and lifestyle statement,
So, your tax calculation and return preparation is done and now you have to submit the tax return including required documents and tax deposit challan. In the last two chapters, eight and nine, you will learn how to make the payment of tax to the government treasury, how to adjust tax if there is any excess payment in the previous year or how to deduct the TDS amount from the current year’s tax liability.
Sometimes, it may not be possible to submit a tax return within the due date and in that case how you will extend your return filing date is discussed in the book. And the time extension form fill-up has been provided in the appendix section of the book for you so that you could prepare the time extension form.
So, you have understood that from the first to last about return preparation has been included in the “Tax Return Preparation: Complete Guide 2021” book. And that’s why, this book is your complete practical guide for tax return preparation for 2021.