Income Tax Slab:
|Income Tax Slab||Tax rate - Individuals|
|Up to `2,50,000||Nil|
|2,50,001 to 5,00,000||5%|
|5,00,001 to 10,00,000||12,500 + 20% of total income exceeding 5,00,000|
|Above 10,00,000||1,12,500 + 30% of total income exceeding 10,00,000|
The Finance Act, 2020 has introduced new optional tax regime :
- No Tax – Upto Rs 2.5 Lakhs
- 5% Tax – Between 2.5 Lakhs to 5 Lakhs
- 10 % Tax – Between 5 Lakhs to 7.5 Lakhs
- 15 % Tax – Between 7.5 Lakhs to 10 Lakhs
- 20 % Tax – Between 10 Lakhs to 12.5 Lakhs
- 25 % Tax – Between 12.5 Lakhs to 15 Lakhs
- 30% Tax – Above 15 Lakhs
The tax payer has an option to choose either of the above. Individuals can pay Lower tax as per the new regime or they continue to pay tax under the existing tax slab rate. The Individuals opting for the New Tax regime will have to forgo exemptions and deductions available in the old tax regime.
The below exemptions are Not Allowed:
- Deduction under Chapter VI-A deduction (80C, 80D, 80E etc. ) (Except Section 80CCD(2))
- Housing loan interest
- Salary – Standard Deduction
- Education allowance for children
- House Rent Allowance
- Leave Travel Allowance
It is advisable to choose the new tax regime if you have less investment
Three categories of “individual”
- Individuals - less than of 60 years of Age
- Resident Senior citizens - More Than 60 and Less than 80 years of age
- Resident Super senior citizens - More than 80 years of Age
FORM ITR-1 – Sahaj forms can be filed by any person having income for Fy upto Rs. 50 lakh and who receives income from salary, one house property / other sources (interest etc.)
FORM ITR-2 - Individuals and HUFs not having income from business / Profession and not eligible to file sahaj
FORM ITR-3 – Any person having income from business / Profession
FORM ITR- 4 - Individuals, HUFs and firms other LLPs having total income upto Rs. 50 lakh and income from business and profession computed under the presumptive taxation provisions
FORM ITR-5 – Partnership Firm, LLP can file this form.
FORM ITR-6 – Companies can file this form
FORM ITR-7 - Political parties, charitable institutions can file this form.
Due date for filing an Income tax Return:
- For Individuals and Non Audit Case - 31st July of the assessment year.
- For Audit Cases - 31st September of the assessment year
Income tax / Proprietorship:
Proprietorship Income tax return filing is similar process as an individual income tax filing. Proprietors under 60 years and the income exceeds the limit of RS.2, 50,000 is need to file Income tax. It is totally different slab from LLP and Companies.
Income tax-Limited liability Partnership/Partnership companies/private limited company
Limited Liability Partnership or partnership companies are considering as the same token of Partnership firms. For Limited Liability Partnership and partnership companies are paying 30% from total income as the rate of income tax. If the income exceed more than a crore sub-charge of 12% need to pay. Public limited company comes under the taxation amount of 25% from total income of earning.
Penalty on Income tax:
Ending of the financial year, all the financial reports need to submit. From the April 1st new financial year is commencing for further business progress. Government of India allotting 31st July the deadline for filing all company’s ITR report. Rs.5000 is levied per day as a Penalty for submitting ITR before December 31st. Suppose, if it extends after December 31st the penalty amount will be Rs.10, 000.
2. Investment details ( For Eligible Deductions ) (80C, 80CCC, 80CCD, 80CCG, 80D, 80DD, 80DDB,80E, 80G,80GG, 80GGC, 80TTA, 80TTB, 80U )
3. Aadhaar Card Copy and Pan Card Copy.
4. Source of Income
- Declare - Salary Income
- Declare - Rent Income ( Own or Joined House Property )
- Declare - Income from Business or Profession ( Profit sharing or Salary from the Firm or Company )
- Declare - Capital Gain ( Any property or Shares or Mutual funds or PF etc, sold )
- Declare - Any income from other sources
- LIC Policy premium payment
- Rent paid
- School Fees for children
- Housing Loan ( Provide the split up - Interest part and Principle part )
- Donations paid
- Health insurance premium Paid