Get Full Information/Guide About Income Tax Return And Its Types

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What is the Income Tax?
A tax is a fundamental fee or financial charge laid down by any government on an individual or an association to gather funds for public works giving the best facilities and infrastructure. The gathered fund is then utilized for various public expenditure programs. In simple words, an Income Tax return is a sum of money demanded by a government for its support or for specific facilities or services, levied upon incomes, property, sales, etc. a burdensome charge, obligation, duty, or demand.

Why Income Tax Return Is Important?
Lodging your income tax return is a sign that you are a responsible citizen of your respective country. Whether it is an individual tax return or a company tax return it is always important to lodge your returns on time. Filling your income tax return from time to time means you contribute to your country’s development or for the best infrastructure. As per the Income Tax laws, anyone who earns a specified amount of capital each year is expected to lodge their tax return before the due date. If you miss doing so, you will be penalized. Individuals who gain an income less than the specified deadline may also file returns even if it is not mandatory. 

Types Of Tax return For Individual as well as Business Owners:

There are many tax returns that are laid down by the government on an individual as well as an organization. Some of these are given below:-

  1. Individual Tax Return: The individual income tax or personal income tax is a tax laid down on the salaries, wages, interest, dividends, and other income a person makes during the year. Personal tax is commonly forced by the state authority in which the income is earned. But, some states have interchange agreements with one or more other states that permit income earned in different states to be taxed in the earner’s state of habitation.
  1. Partnership Tax Return: A Income tax return must be filed for the partnership and individually each partner must also submit an Individual Tax Return. This allows business expenses and reductions to be separated from personal finances. 
  1. Small Business Tax Return: The meaning of Small business tax return is easy as it is the taxation on a business’s profits. If you operate a business however it is a large or a small business, filing your tax return is your yearly responsibility when it comes to managing your business without any legal concerns in Australia.

Types of Small Business Tax:-

  • Income Tax
  • Excise Tax
  • Property Tax
  • Sale and Use Tax
  • Employment Tax
  • Social Security Tax
  • Medicare Tax
  • Federal Income Tax withholding
  • Federal unemployment Tax
  • Estimated tax
  1. BAS Tax Return: BAS(Business Activity Statement) is a form that you fill out between one and twelve times a year, depending on your business size. The ATO uses the report on your BAS returns to work out your GST refund or bill. BAS will support you with listing and pay your GST, PAYG, and PAYG withholding tax and other taxes. It’s also used for business income tax, employee income tax, fringe benefits tax, luxury car tax, wine equalization tax, and fuel tax credits. You might be needed to lodge a BAS Tax Return when you have registered for GST. 
  1. Company Tax Return: If you run your business as a company, you need to file a company tax return on time. The company lists their taxable income, tax offsets and credits, PAYG installments, and the amount of tax it is liable to pay on that income or the amount that is refundable.

 Completed Company Tax Return includes:

  • a CT600 form
  • the company’s accounts
  • the company’s tax computations
  • any supplementary documentation
  1. Trust Tax Return: The trust tax return is the yearly responsibility that is laid down on the trusts in Australia. Trusts are an easy tool for defending business or family assets, planning for a smart financial expectation, and managing income. A trustee is expected to file a trust tax return, regardless of the amount of net income involved.
  2. Late Tax Return: Normally, you have to file your Income-tax return every year without getting late. Whatever your reasons are, you have to pay your income tax return from time to time. If you file late tax the ATO(Australian Taxation Office) can apply a number of fines to push you to file or penalize you for filing late.
  3. GST Tax Return: The Goods and Services Tax in short GST. It is a tax that is levied on the manufacture, sale, and consumption of goods and services sold for domestic usage. GST return is paid by buyers for the consumption of goods and services. 

I hope above I have covered all the necessary points for tax returns. For your business or you as an individual, at least once in a year, you have to use one of all the above tax return services. If you have a question in your mind “How To Find Tax Agent Near Me To Lodge Tax Return?” then Tax Agent Perth is here to assist you with your tax return. We have an ATO registered tax agent who will also help you as a business consultant more professionally.