Old Regime Vs New Regime: How tax slab will save more in ITR, know here

Income Tax Return (ITR) is a form used to file your income and taxes with the Income Tax Department. The tax liability of the taxpayer is calculated on the basis of his income. If the return shows that excess tax has been paid during a year, then the person will be eligible to get an income tax refund from the Income Tax Department.

As per income tax laws, a return must be filed every year by a person or business earning income during a financial year. Income can be in the form of salary, business profit, income from house property or income earned from dividend, capital gain, interest or other sources. Tax return has to be filed by an individual or a business before a specified date. If a taxpayer fails to comply with the deadline, he has to pay a penalty.

As per the prescribed tax laws in India, it is mandatory to file your income tax return if your income exceeds the basic exemption limit. The rate of income tax is pre-decided for the taxpayers. Delay in filing returns will not only attract late filing fee but will also hamper your chances of getting loan or visa for travel purposes.

Step 1: First go to the e-filing website of the Income Tax Department

Step 2: Register on the portal if you are new to e-filing

Step 3: If you have already registered, log-in. Enter your User ID and your Password to log-in

Step 4: After logging in, the option ‘File Income Tax Return’ will appear under the ‘e-file’ tab on the screen. keep on going

Step 5: Select the assessment year for which you want to file ITR, and click on “Continue”.

Step 6: Select the “Online” mode in the middle below.

Step 7: Choose whether you want to file your income tax return as an individual, Hindu Undivided Family (HUF), or any other form. Select the option of ‘individual’.

Step 8: Then under “Filling Type” select 139(1)- Original Return and then select the “ITR FORM” you want to file based on your category. The form will be downloaded on your system.

Step 9: Then enter the reason for filing your return.

Step 10: Enter your bank account details. If you have already provided your bank account information, pre-validate it.

Step 11: You will then be redirected to a new page to file your Income Tax Return. The page will have a lot of information pre-entered. Check that all the information given is correct. Confirm and validate your return summary.

Step 12: You can verify your tax return electronically using Aadhaar OTP or EVC (Electronic Verification Code) or by sending the signed printout of ITR V to CPC Bangalore within 120 days from the date of e-filing Are

Step 13: Once your return is filed, ITR V receipt will be sent to your registered email

Step 14: After you verify the ITR, the department will start processing it and you will get a notification on your registered email ID and mobile number. It is not necessary to file ITR only from the official site of the Government of India. But there are also many private sector platforms that file ITR. In return for filing the return, they charge you some fee.

If your total income (more than Rs 2.5 lakh) comes under the tax net, then it has to be filed ITR. The amount of tax you will have to pay on the amount of income depends on your age and which tax regime you have chosen. In the budget of the year 2020, the Central Government had introduced a new tax regime and the tax slab rate applicable under it is different from the first tax regime. However, people have the option whether they want to pay tax under the old tax regime or the new one. The applicable tax rates will be commensurate with whichever tax regime you choose. The table below explains the tax rates applicable in both the tax regimes. You can compare and choose the best for yourself.

In the new tax regime, there is a provision of zero tax on income between 0 to 3 lakh rupees. 5% on income between Rs 3 to 6 lakh, 10% on income between Rs 6 and 9 lakh, 15% on income between Rs 9 and 12 lakh, 20% on income between 12 and 15 lakh and above 15 lakh 30% income tax will have to be paid.

Individuals and HUFs can opt for the existing tax regime or the new tax regime with a lower rate of taxation (under section 115BAC of the Income Tax Act) Certain exemptions available in the existing tax regime to taxpayers opting for concessional rates in the new tax regime Further deductions (eg 80C, 80D, 80TTB, HRA) will not be allowed.

if your age 60 years or less So, in the old/current tax regime, if your income is up to Rs 2,50,000 then you did not have to pay anything, whereas in case of income of 2.5 lakh to 5 lakh, 5 percent, in case of income of 5 lakh to 10 lakh, 12,500 Rs.1,12,500 + 30% if your income exceeds Rs.10 lakhs and 20% It has to be filed in the form of Income Tax Return.

But In the new tax regime, there is a provision of zero tax on income between 0 to 3 lakh rupees. 5% on income between Rs 3 to 6 lakh, 10% on income between Rs 6 and 9 lakh, 15% on income between Rs 9 and 12 lakh, 20% on income between 12 and 15 lakh and above 15 lakh 30% income tax will have to be paid.