My name is shivam sinha this is for the testing purpose
11 Feb, 2023
TABLE OF CONTENT:
Paying Income Tax to the Government is an important milestone in everyone’s life. It falls under the category of ‘must-do’, making it a responsibility of every Indian Citizen. Now, what is an Income tax?
Income tax is a portion of our income that we pay to the government for the country’s welfare and development. The process is termed as Income Tax returns filing. This looks pretty simple but there are slabs and other regulations of paying Income Tax.
Income, as per the Income Tax Act, 1961 classifies the income into five categories which are liable for Tax Returns:
Assessment year is the year that comes after the ‘previous year’. In simple words, the year in which you earn the total income is the Financial Year and the income you have earned in the financial year can be taxed in the Assessment Year.
For example, if you start your job on 1 January 2020, your tax year closes on 31 March 2020. 2019-20 is your previous year and your AY is 2020-21.
Slab rates are different threshold levels of income on which your taxability is determined. As per the Income Tax Act, 1961, every taxpayer is categorized into different income groups to determine the rates at which their income will be taxed. These groups are called tax slabs. Tax liability depends on the tax slabs and they are divided into the following criteria’s: -
Tax Rates for Individuals as per budget 2019-2020
Income Tax Slab (in Rupees) |
Tax Rate for Individual Below the Age Of 60 Years |
0 to 2,50,000* |
Nil |
2,50,001 to 5,00,000 |
5% of total income exceeding 2,50,000 |
5,00,001 to 10,00,000 |
Tax Amount of 12,500 for the income up to 5,00,000 + 20% of total income exceeding 5,00,000 |
Above 10,00,000 |
Tax Amount of 1,12,500 for the income up to 10,00,000 + 30% of total income exceeding 10,00,000 |
Tax Rates for Senior Tax Payers between the age of 60 years to 80 years’ old
Income Tax Slab |
Senior Citizens (between 60 years – 80 years) |
Up to 3,00,000 |
Nil |
3,00,001 to 5,00,000 |
5% of income exceeding 3,00,000 |
5,00,001 to 10,00,000 |
Tax Amount of 10,000 for the income up to 5,00,000 + 20% of total income exceeding 5,00,000 |
Above 10,00,000 |
Tax Amount of 1,10,000for the income up to 10,00,000 + 30% of total income exceeding 10,00,000 |
Tax Rates for Super Senior Tax payers above the age of 80 years
Income Tax Slab |
Very Senior Citizens of and above 80 years of age |
|
Up to 5,00,000 |
Nil |
|
5,00,001 to 10,00,000 |
20% of income exceeding 5,00,000 |
|
Above 10,00,000 |
Tax Amount of 1,00,000for the income up to 10,00,000 + 30% of total income exceeding 10,00,000 |
Various deductions are available for a taxpayer from the end of the Income Tax Department. This results in a reduction of the gross income, which in turn reduces the tax liability.
Sum of all income = Gross income
Gross Income – Deductions = Taxable Income
Therefore, higher is your deduction; lower is your tax liability.
It is recommended for every Indian citizen to understand the tax terms clearly and pay the taxes with responsibility. Even if the payable tax amount is NIL, the Income Tax Returns should be filed annually on time.
Online Legal India TM helps you to file ITR in proper format and without any hassle, all online and at a nominal charge. The skilled tax experts even help you avail every kind of deductions in every possible means.
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