Income tax eligibility refers to the criteria determine whether an individual is liable to file Income Tax Return. In India, individuals, Hindu Undivided Families (HUFs), and other entities are required to file their Income Tax returns subject to certain conditions. Determine your Income Tax eligibility with Tax2win.
ITR stands for Income Tax Return. It is a form that taxpayers are required to file with the Income Tax Department of India to report their income, deductions, and taxes paid in a financial year.
An ITR form is a declaration of a taxpayer's income, and it helps the government determine the taxpayer's tax liability. It also allows taxpayers to claim any refunds due to them from the Income Tax Department.
There are several types of ITR forms, and the form to be filed depends on the nature and source of income, the category of the taxpayer, and other factors such as the value of assets and the place of residence. The forms range from ITR-1 to ITR-7, and each form is designed to cater to different types of taxpayers.
In general, any individual or entity whose total income during the financial year exceeds the basic exemption limit (which varies depending on age and income category) must file an Income Tax Return (ITR) in India.
The taxpayers in India need to pay income tax on the basis of the income tax slab they fall in. There are three categories under which income tax is divided:-
|Old Regime Tax Rates for FY 22-23 (AY 23-24),||New Regime Tax Rates for FY 22-23 (AY 23-24)|
|Individuals and HUF with age less than 60 years||Individuals and HUF with age 60 years or more but less than 80 years||Individuals and HUF with age 80 years or more||Applicable for All Individuals or HUF|
|Rs 0.0 to Rs 2,50,000||NIL||NIL||NIL||NIL|
|Rs 2,50,001 to Rs 3,00,000||5% (tax rebate u/s 87a is available)||NIL||NIL||5% (tax rebate u/s 87a is available)|
|Rs. 3,00,001 to Rs 5,00,000||5% (tax rebate u/s 87a is available)||NIL|
|Rs. 5,00,001 to Rs 7,50,000||20%||20%||20%||10%|
|Rs 7,50,001 to Rs 10,00,000||20%||20%||20%||15%|
|Rs 10,00,001 to Rs. 12,50,000||30%||30%||30%||20%|
|Rs. 12,50,001 to Rs. 15, 00,000||30%||30%||30%||25%|
|Exceeding Rs. 15,00,001||30%||30%||30%||30%|
There are exceptions where an individual's income does not meet the taxable limit but is still mandated to file tax returns. The conditions for the same include:
What documents are required while filing ITR?
The important documents required for filing income tax returns are-
The key benefits of filing your Income Tax Return regularly are as follows:
Yes, it is mandatory to file Income Tax Returns (ITRs) in India if your total income during the financial year exceeds the basic exemption limit (which varies depending on age and income category), even if no tax is payable. Failing to file your ITR on time can result in penalties and fines.
After cautiously deciding which form you are required to file, you can visit the official Income Tax website and download the necessary forms.
If you fail to file your income tax returns before the due dates, you can file a belated return Belated return filings attract a penalty of upto Rs. 5000 under section 234F. But, for an income upto Rs. 5,00,000, the penalty levied is Rs. 1000. Also, if gross total income is Rs. 2,50,000 or less, no penalty shall be imposed. Certain losses like short-term capital loss, losses from business, long-term capital loss, etc., cannot be carried forward if Income Tax Returns are not filed before the due date as specified u/s 139(1).
If your income is less than ₹ 2,50,000, you don’t have to pay any Income-tax. This applies to individual, HUF, AOP, and BOI. But if you are a resident individual who is 60 years or older but less than 80 years, you can earn up to ₹ 3,00,000 without paying any Income-tax. And if you are a resident individual who is 80 years or more, you can earn up to 5,00,000 without paying any Income-tax.
Sikkim residents are exempted from paying taxes due to section 10 (26AAA) of the Income tax Act of 1961.