Income Tax Returns (ITR)
  

  
Income Tax is a form of taxation to an individual by the government directly on their annual income. On the other side, income tax return (ITR) is a proof in form of a document to show that an individual has paid his/her income tax. It contains information about your income tax and the amount paid. However, in cases where an individual has failed to fill his/her ITR, legal consequences might apply or even risk paying a penalty.

Types of Income Tax Returns
There are about eight types of ITRs but the most common types are as follows:

o             Income of salary/individual
o             Income from business
o             Income from house property
o             Income of Capital Gain
o             Income of lottery interest or other sources

#1 Individual Tax Return/Salary

This is the most common type of taxing where every individual working under the government policy is taxed. Basic salary, allowances, commission, pension are some of the taxables. Under the government's act, failure to pay will lead to penalties or even risk imprisonment.

#2 Incomes from business or self-employment

Business owners and self-employed individuals under the governments act are entitled to pay entities on salary earned. This is done once annually regardless whether the business is self-owned, group, or community. Bigger businesses such as companies pay larger amounts as compared to smaller businesses. Generally, tax is paid as per the income earned. If you want to learn more about income tax returns, you can visit http://dictionary.reference.com/browse/tax .

#3 Incomes from house or property

Rental income is taxable under the government's acts therefore; buildings and landowners are liable to this payment. Commercial house properties at https://www.okcalculator.com/1040ez-tax-estimator.html are taxed according to the type of business involved. However, land rates fall under a different category. In addition, if you have taken a lease as a property owner and you are subletting it then taxes will not fall under this category. Renting of lands, which has no buildings attached, will be taxed differently according to the government act. Lands rates however, apply on lands whether in use or not

#4 Income of capital Gain

This form of tax applies on sales of capital assets. This means any kind of business whether long-term or short-term sold is liable to taxation. A professions at https://www.okcalculator.com/1040ez-tax-estimator.html old falls under this category of taxation under the same rate

#5 Incomes on lotteries, gambling, or crossword puzzles

Any other category not mentioned before falls under this category but majorly, Lotteries and other gambling companies are taxed under this act. Subletting and rental of machinery tax dues applies under the same rate as lotteries.