Income Tax is also known as the Progressive Tax. Income Tax is divided into two categories they are Direct and Indirect taxes System. Income Tax is treated as Direct Tax systems. Every year the financial system has changed due to as per the financial bill. The Financial minister of the National will announce the Changes in the Income Tax Act as per the latest Changes and required positions. Every Year Union Minister going to announce the Income Tax Calendar. This will predict the Important Dates For filing the Income Tax Returns.
Who are eligible To Pay Income Tax?
Under the Existing rules of the Income Tax Act. Every individual Business Company Firm who has crossed the income they have to pay the Income Tax. If the Individual exceeding the 3 Lakhs of the Income need to pay the Tax as per the IT Act. In the below table here we are explaining the detailed net taxable Income for Financial Year 2019-20. In the below format we are providing information about the various Income taxes.
- Salaried Individuals
- Self Employed Individuals
- Self Employed Professionals
- Hindu Undivided Family HUF
- Legally Recognised Artificial Persons
- Body of Individuals BOI
- Association of Persons AOP
- Companies and Corporate Firms
- Local Authorities
What are the Income Tax Slab Rates?
|S.No.||Income Slab||General Category||Senior Citizen Above 60 Years and Below 80 Years||Very Senior Citizen Above 80 Years|
|1||Up to 2,50,000/-||Nil||Nil||Nil|
|2||2,50,000/- to 3,00,000||5%||Nil||Nil|
|3||3,00,001/- to 5,00,00/-||5%||5%||Nil|
|4||5,00,001/- to 10,00,000/-||20%||20%||20%|
Income Tax Rate above Turnover
- Candidates between 50 Lakhs to 1 Crore A surcharge of 10% of the Income Tax has to be paid.
- Above 1 Crore A surcharge of 15% of the Income Tax has to be paid.
- However, 4% of the Income-tax will be paid to all the people for Health and Education Cess.
Income Tax Slabs For Co-Operative Societies
|S.No||Income Tax Slabs||IT Slab Rates|
|1||Income is within Rs 10000||10% of the Income|
|2||Income is 10001 to 20000||20% of Tax exceeding Rs 10,001|
|3||Above Rs 20,000||30% of Tax exceeding Rs 20,001|
For Firms and Domestic Companies
- The above-given slab rates are do not apply in the case of Domestic Companies, Local Authorities, and Firms.
- A Tax of Flat 30% is computed on the Total Income of the Company.
- A Surcharge of 7% will be levied on the Domestic Companies if the company total income exceeds more than 1 Crore.
- A Surcharge of 12% will be levied on the Domestic Companies. The Company’s total income exceeds Rs 10 Crores.
- An Education Cess of 3% of the Tax Plus surcharge will be levied on the total entities.
Filing Returns is Mandatory
- The IT Department is responsible for all activities related to the Taxation Process.
- At the End of every Financial Year Tax Payer has to declare all the income earned from various sources of Income as per the govt of India.
- It is compulsory to file the Income Tax return for every individual based on the income earned by them. They can analyze the Tax amount by TDS ( Tax Deducted at Source).
- This ITR (Income Tax Return Form) based on the income earned in a particular financial year.
- The Income Can be earned in various forms such as Salary, Pension, Income From Housing Property or Even Income From Capital Gains, …etc.
- By filing the ITR Form (Income Tax Return Form) before the due date through the income tax portal by paying the tax.
- The Filing of the Income Tax Return is the proof of the Tax which is paid by the Individual, Company and Co-Operative Societies.
- As per the Income Tax Act, it is mandatory to file the ITR Every Year.
- Not Filing the Income Tax Returns IT Department will take the Actions. The income tax department will consider as a defaulter.
- It can attract penalties from the Income Tax Department.
- If you have paid more than required, The excess of the amount paid by you will be refunded.
What are the Different Types of Taxable Income?
As per the existing rules of the Income Tax Act 1961. The Following are the Key types of Income That are subject to Taxation as per the applicable rates.
- Income From Salary
- Income From Capital Gains
- Income From Business
- Other Income Such as Lottery and Other Legal Gambling and Dividend Income, ..etc.
Advantages of Filing Income Tax Return ITR
Every Tax Payer will file the income Tax return before the due date of the application form. Tax Payer who is the below age of the 60 Years they need to pay the tax if they are earned above 2.5 Lakhs as per the Norms. Some cases that are not eligible under the Income Tax department will pay the Income Tax. The basic Tax slab will be increased by paying the Income Tax rules as per the age group. Filing of the income tax return and payment of the tax two are various obligations. Even if you do not have the tax liability you need to file the income tax returns. Below are some of the examples of the filing of Income Tax returns.
- IT Returns facility easy processing of Loans
- For VISA Processing Return Filing is Mandatory.
- Quick Registration of the Immovable properties is possible.
- A soon credit card will be issued by the bank till an applicant files for the returns on the regular dates.
- Filing income tax returns helps set up a record with the Income Tax departments.
Filing Income Tax Returns
As per the Income Tax Act, it is mandatory to file the IT Returns They are
- As per the Income Tax Act, the online registration process has been implemented from 2006 to 2007 by the Income Tax Department.
- The Benefit of the e filing has been applicable to all the assessees.
- Every Firm and Company are required for the Statutory audit under section 44AB.
- At present, a significant section of the TaxPayers are E filing income Tax Returns ITR Taxes.
- The Income Tax Department has made all the efforts to bring the returns online.
- Anyone can file the E file your income tax returns at https://www.incometaxindiaefiling.gov.in
- Every e filing returns has various Advantages like you don’t have to perform paperwork and you can make them easily online filing.
- Within seconds you can log in to the website and file all the returns.
Before paying the income tax you should aware of the income tax computations. Plenty of people will say the income tax which will help to save the tax. Persons who are earning under from various categories like Income From Salary, Income From House Property, Income From Capital Gains, …etc. As per the Income Tax Rules, everyone needs to cut the TDS (Tax Deducted at Source). The Final Tax payable as per the rules of the income tax Act 1961. Plenty of people are looking for Income Tax on or before the due date.
To Reduce the tax amount government will provide some of the exemptions and under section VI. If you observe the under section 80C. The Following are some of the exemptions they are
- Tax Saving Mutual Fund
- Tax Saving Fixed Deposit
- National Savings Certificate
- Repayment of the Principal on a Housing Loan
- Life Insurance Policy Premium
- Equity oriented Mutual Funds
- Contributions made to Employee Provident Fund
- Under Section 80C up to tax exemption limit is 1.5 Lakhs
Deductions allowed under Various Sections
A taxpayer can claim the additional deductions as per the various sections. Each and every section will provide some benefits for tax exemptions. They are
- Under Section 80CCC Every Tax Payer who will pay the LIC Contribution amount will consider the tax benefit up to 1.5 Lakhs.
- Interest on the savings account will get tax-exempt up to Rs 10,000 Per annum under section 80TTA.
- Tax Payer who will invest in the Rajiv Gandhi Saving Scheme is eligible for the Deduction under section 80CCG.
- Under Section 80D if an individual makes a payment for the medical insurance premium for his spouse, children, or his own self.
- Tax Payer can claim the income tax deduction up to the amount of Rs 25,000. For Senior Citizens, the limit has been extended to Rs 30,000. Additionally, he can also claim also health check-up costs till Rs 5000 per family qualify for the tax.
- Under Section 80DD, if family members of the taxpayer are suffering from the 40% disability. He Can claim deductions for up to Rs 75,000 on medical treatment for disabled dependents.
- As per section 80DDB, A person is allowed for the deduction if he pays the number of Rs 40,000 or more than the treatment of specific diseases like Malignant Cancers, Neurological Diseases, Chronic Renal Failure, Haematological disorders, and AIDS.
- Any tax Payer took the education loan and you have to repay the interest which will qualify the income tax deductions under section 80E. These deductions are only eligible for the repayment of the interest amount of the education loan.
- If the taxpayer has paid any donations to any charitable trust they can get the tax deduction under the section 80G, 80GGA, 80GGB, 80GGC.
- A standard deduction of Rs 40,000 has been introduced in the budget of 2019 for the salaried class in lieu of the Medical reimbursement and transport allowance. This Deduction is allowed to every taxpayer they did not need to show any document or any evidence for the claim of the deductions. They can get the standard deductions automatically.
About Income Tax Rebate
Plenty of people will arise a number of doubts related to the tax rebate. The income Tax department already providing tax exemption and tax deductions.