INCOME TAX RETURNS

Income Tax Returns ( ITR) in India

There are two categories of Taxes in India i.e. Direst Tax and Indirect Tax. Direct Tax is directly levied on your income. Indirect Tax, on the other hand is charged on the goods purchased or services availed like GST, Excise duty, etc. Indirect Tax is collected by the seller or service provider and deposited to the Government. Direct Taxes can be categorized under two broad headings:

  • Income Tax – This tax is paid by Individuals, Hindu Undivided Family (HUF), or any other tax payer except companies. Income Tax is paid on income earned and paid through specified challans. This tax is charged on the basis of different slab rates prescribed by Government under Income Tax Act.
  • Corporate Tax – This tax is paid by companies on the profit earned by the them from their business. A specified rate of tax is also prescribed by Government under Income Tax Act.

Some Important dates related to Income Tax Returns in India

31st January31 st March31st JulyOct-Nov
Deadline to submit investment proofs Deadline to make investmentsITR due dateTime within which ITR can be verified

Heads of Income under Income Tax

Heads of IncomeNature of Income
Income from SalarySalary & Pension
Income from Other SourcesSavings bank interest, fixed deposit interest, etc
Income from House PropertyRental Income
Income from Capital GainsIncome from sale of capital assets such as land, building, shares, etc
Income from Business & ProfessionThis is the income earned through own business.

Income Tax Slab Rates

 Income Tax Slab for Individual who are below 60 years:

Income Tax SlabTax Rate
Up to Rs.2.5 lakh Nil
From Rs.2,50,001 to Rs.5,00,000
5% of the total income that is more than Rs.2.5 lakh + 4% cess
From Rs.5,00,001 to Rs.10,00,000 20% of the total income that is more than Rs.5 lakh + Rs.12,500 + 4% cess
Income of above Rs.10 lakh 30% of the total income that is more than Rs.10 lakh + Rs.1,12,500 + 4% cess

Individuals who have an income of less than Rs.5 lakh are eligible for tax deductions under Section 87A

Income Tax Slab for indivitual between 60-80 years:

Income Tax slabs Tax Rate
Up to Rs.3 lakh Nil
From Rs.3,00,001 to Rs.5,00,000
5% of the total income that is more than Rs.3 lakh + 4% cess
From Rs.5,00,001 to Rs.10,00,000
20% of the total income that is more than Rs.5 lakh + Rs.10,500 + 4% cess
Income of above Rs.10 lakh 30% of the total income that is more than Rs.10 lakh + Rs.1,10,000 + 4% cess

Income Tax Slabs for individual above 80 years:

Income Tax slabs Tax Rate
Up to Rs.5 lakh Nil
From Rs.5,00,001 to Rs.10,00,000 20% of the total income that is more than Rs.5 lakh + 4% cess
Above Rs.10 lakh 30% of the total income that is more than Rs.10 lakh + Rs.1,00,000 + 4% cess

Income Tax Payers

  • Individuals, Hindu Undivided Family (HUF), Association of Persons(AOP) and Body of Individuals (BOI)
  • Firms
  • Companies