The government of India has announced 31st December 2021 as the last date to file your Tax Returns for AY 2021-22. With the due date for filing your returns coming close it is imperative that one is aware of all the basics of taxation.
What is Income Tax Return?
The Government of India levies various types of taxes to mobilise revenues, these taxes are broadly classified into two categories – direct taxes and indirect taxes. Indirect taxes are also ultimately paid by the consumers but as the name suggests it is collected by various businesses which provide products and services, and then deposited with the Income Tax Department. As for direct tax it must be paid directly by various entities to the Income Tax Department, which collects all taxes on behalf of the government . All earning bodies such as individuals, Hindu Undivided Family (HUFs), Body of Individuals (BOI), Association of Persons (AOP), firms, companies, businesses are liable to pay direct income tax and for that purpose they need to file their Income Tax Return before the deadlines as announced every year.
Income tax for all of the above entities vary and have different methods of calculations. The different heads under the income tax laws are –
- Capital Gains
- Income from Salary
- Income from other sources
- Income from businesses and profession
- Income from house property
While filing ITR one needs to mention incomes from different sources under the relevant heads.
Slab Rates for Income Tax –
One of the first things one needs to consider while starting to file their ITR is the slab rate under which their income falls. Depending on the volume of one’sones income, the tax percentage varies. These slab rates are updated in the financial budget. The current slab rates are –
|Income Tax Slab||New Regime Income Tax Slab Rates FY 2020-21
(Applicable for All Individuals & HUF)
|Rs 0.0 – Rs 2.5 Lakhs||NIL|
|Rs 2.5 lakhs- Rs 3.00 Lakhs||5% (tax rebate u/s 87a is available)|
|Rs. 3.00 lakhs – Rs 5.00 Lakhs|
|Rs. 5.00 lakhs- Rs 7.5 Lakhs||10%|
|Rs 7.5 lakhs – Rs 10.00 Lakhs||15%|
|Rs 10.00 lakhs – Rs. 12.50 Lakhs||20%|
|Rs. 12.5 lakhs- Rs. 15.00 Lakhs||25%|
|> Rs. 15 Lakhs||30%|
|Income Tax Slab||Individuals Below The Age Of 60 Years – Income Tax Slabs (Old Tax Regime)|
|Up to Rs 2.5 lakhs||NIL|
|Rs. 2.5 lakh -Rs. 5Lakhs||5%|
|Rs 5 .00 lakh – Rs 10 lakhs||20%|
|> Rs 10.00 lakh||30%|
These are a few basic things you need to be aware of while starting out with filing your ITR. For more stay tuned with us. Ease your ITR filing process with Sqrrl Prime and enjoy free Tax Filing!