In India, the government has created a slab system to make the methods of collecting income tax easy and just. This means that with the increase in the salary of the tax payer, the tax rates also increase.
Income Tax Return: Income Tax (Income Tax) refers to the tax that is levied on the income (salary) of a person. However, it has several rules, such as it is not levied on income below a certain limit and income above that limit also has fixed slabs, i.e. different tax rates are fixed for different categories of income. You may find this confusing to hear, but it is not that difficult to understand.
In India, the government has created a slab system to make the methods of collecting income tax easy and just. This means that with the increase in the salary of the tax payer, the tax rates also keep on increasing. Thus the division of tax rates into categories enables a progressive and fair tax system in the country. Changes are made in the budget of every year in this tax system or slab.
Currently, there are three categories of “individual” taxpayers in income tax, namely residents and non-residents below 60 years of age, senior citizen residents between 60 and 80 years of age, and super senior citizen residents above 80 years of age.
Now, it is also important for you to know that in March 2020, the country entered the Corona period, due to which the central government has not made any changes in the income tax slab for the financial year 2020-21 and it will be implemented in the new financial year 2021-22. decided to implement. However, relaxation was given in the new slab, according to which, senior citizens above the age of 75 years who are substantially dependent on their pension as well as income interests, were exempted from filing tax returns and this rule Fire is also applicable. In these cases TDS (Tax Deducted of Source) is automatically deducted by the bank.
Read Also: Income Tax Alert! Exemption of senior citizen is over, now the return will have to be filed, know what has changed here
How To File Income Tax Return?
Filing of Income Tax Return has become very easy now. Long queues and countless hassles of meeting tax-filing deadlines are gone. Now people can easily file their income tax online, which is also known as e-filing. This saves a lot of time
You can easily fill your income tax return online by following the steps given below.
Log on to the Income Tax Department portal for online return filing. Register using your permanent PAN, which will act as the User ID.
Under ‘Download’, go to e-filing under Current Assessment Year (Assessment Year) and select the appropriate Income Tax Return (ITR) Form. If you are a salaried person, then you have to download the return preparation software of ITR-1 (sahaj).
Open the return preparation software (Excel utility) you downloaded. Follow the instructions and enter all the details from your Form 16.
Calculate the tax to be paid, pay the tax and enter the required challan details in the tax return. If you do not have any tax liability, you can skip this step and proceed.
Verify the information you entered and create an XML file which is automatically saved on your computer.
Go to the ‘Submit Return’ section and upload the XML file.
You can digitally sign the file when asked. If you don’t have a digital sign, you can skip this step.
A message confirming successful e-filing will flash on your screen, followed by an acknowledgment form called ITR-Verification. It can be downloaded. It is also emailed to your registered email id.
You can e-verify the return through any one of the total six methods i.e. 1) NetBanking, 2) Bank ATM, 3) Aadhar OTP, 4) Bank Account Number, 5) Demat Account Number, 6) Registered Mobile number and e-mail id. E-verification does not require you to send a physical copy of IRT-5 acknowledgment to CPC, Bangalore.
