The taxpayer shall file an income tax return every year via ITR forms prescribed by the income tax department. The government has prescribed seven ITR forms through which the taxpayer can file his income tax return. The taxpayer has to choose the appropriate ITR forms and file his income tax return.
The seven ITR forms are:
- ITR-1: Individuals (residents) having income from salary, one house property, other sources, agricultural income less than Rs 5,000 and with a total income of up to Rs 50 lakh.
- ITR-2: Individuals/HUFs not having any business or profession under any proprietorship
- ITR-3: Individuals/HUFs having income from a proprietary business or profession.
- ITR-4: Individuals/HUFs having presumptive income from business or profession
- ITR-5: Partnership firms or LLPs
- ITR-6: Companies
- ITR-7: Trusts
Most Commonly Asked Questions About Us
Contact UsThe old tax regime provides 3 slab
rates for levy of income tax which are 5%, 20% tax rate and 30% for different
brackets of income. The individuals have been given the option to continue with
this Old tax regime and they can claim deductions of allowances like Leave
Travel Concession (LTC), House Rent Allowance (HRA), and certain other
allowances. Additionally, deductions for tax saving investments as per section
80C (LIC, PPF ,NPS etc) to 80U can be claimed. Standard deduction of Rs 50,000,
deduction for interest paid on home loan.
Tax slab rates applicable for
Individual taxpayer below 60 years for Old tax regime is as below:
| Income Range | Tax Rate | Tax to be Paid |
|---|---|---|
| Up to Rs. 2,50,000 | Nil | No Tax |
| Rs 2.5 Lakhs - Rs 5 lakhs | 5% | 5% of your taxable income |
| Rs 5 Lakhs - Rs 10 lakhs | 20% | Rs 12,500 +20% on income above 5 lakh |
| Above 10 lakhs | 30% | Rs 1,12,500 + 30% on income above Rs 10 lakh |
From the FY 2020-21, a new tax regime is available for individuals and HUFs with lower tax rates and zero deductions/exemptions. Individuals and HUF have the option to choose the new regime or continue with the old regime. The new tax regime is optional and the choice should be made at the time of filing the ITR. If the old regime is continued than all the deductions/exemptions as available can be availed by the taxpayer.
The income tax slabs under the new tax regime for FY 2022-23 (AY 2023-24) are:
| New tax regime slab rates (FY 2022-23) | Existing/old tax regime slab rates (FY 2022-23) | ||
|---|---|---|---|
| Up to Rs.2.5 lakh | Nil | Up to Rs.2.5 lakh | Nil |
| Rs 2.5 lakh to Rs 5 lakh | 5% | Rs 2.5 lakh to Rs 5 lakh | 5% |
| Rs 5 lakh to Rs 7.5 lakh | 10% | Rs 5 lakh to Rs 10 lakh | 20% |
| Rs 7.5 lakh to Rs 10 lakh | 15% | Income above Rs 10 lakh | 30% |
| Rs 10 lakh to Rs 12.5 lakh | 20% | ||
| Rs 12.5 lakh to Rs 15 lakh | 25% | ||
| Income above Rs 15 lakh | 30% |
Most of the deductions like deductions and exemptions are not allowed if the taxpayers opts for the New Tax regime. However he exemptions and deductions available under the new regime are:
- Transport allowances in case of a specially-abled person.
- Conveyance allowance received to meet the conveyance expenditure incurred as part of the employment.
- Any compensation received to meet the cost of travel on tour or transfer.
- Daily allowance received to meet the ordinary regular charges or expenditure you incur on account of absence from his regular place of duty.
| New tax regime FY 2023-24 (After budget) | New tax regime FY 2022-23 (Before budget) | ||
|---|---|---|---|
| Income up to Rs 3 lakh | Nil | Up to Rs.2.5 lakh | Nil |
| Rs 3 lakh to Rs 6 lakh | 5% | Rs 2.5 lakh to Rs 5 lakh | 5% |
| Rs 6 lakh to Rs 9 lakh | 10% | Rs 5 lakh to Rs 7.5 lakh | 10% |
| Rs 9 lakh to Rs 12 lakh | 15% | Rs 7.5 lakh to Rs 10 lakh | 15% |
| Rs 12 lakh to Rs 15 lakh | 20% | Rs 10 lakh to Rs 12.5 lakh | 20% |
| Income above Rs 15 lakh | 30% | Rs 12.5 lakh to Rs 15 lakh | 25% |
| Income above Rs 15 lakh | 30% |
Section 17 of the Income-tax Act defines the term ‘salary’. However, not going into the technical definition, generally whatever is received by an employee from an employer in cash, kind or as a facility [perquisite] is considered as salary.
Form 16, Form 26AS, Form 16A, proof of tax saving investments made, bank account details etc are some of the crucial details / documents that you need to be ready with before filing your return. Further the documents you are going to need to file your tax return are largely going to depend on your source of income. For further details you can book a free consultant call at Salarysahihai.com.
The process of calculating taxable income after taking into account the income from all the five heads (salary, house property, capital gains, business or profession, and other sources), exemptions, deductions, rebate, set off of losses, etc., is called computation of income. After computation of income, the taxpayer can compute the income tax liability as per the Income Tax Act.
Allowances are fixed periodic amounts, apart from salary, which are paid by an employer for the purpose of meeting some particular requirements of the employee. E.g., Tiffin allowance, transport allowance, uniform allowance, etc.
There are generally three types of allowances for the purpose of the Income-tax Act – taxable allowances, fully exempted allowances and partially exempted allowances.
Perquisites are benefits received by a person as a result of his/her official position and are over and above the salary or wages. These perquisites can be taxable or non-taxable depending upon their nature. Uniform allowance is exempt to the extent of expenditure incurred for official purposes u/s 10(14).
Yes. However, the benefit of spread over of income to the years to which it relates to can be availed for lower incidence of tax. This is called as relief u/s 89 of the Income-tax Act.
As per section 10(14) read with Rule 2BB Conveyance allowance is exempt to the extent of amount received or amount spent, whichever is less. For e.g., If amount received is Rs. 100 and amount spent is Rs. 80, then only Rs. 20 is taxable. However, if amount actually spent is Rs. 100; then nothing is taxable.
Yes, these are in the nature of perquisites and should be valued as per the rules prescribed in this behalf.
Yes, you will have to pay self-assessment tax and file the return of income.
Form-16 is a certificate of TDS. In your case it will not apply. However, your employer can issue a salary statement.
Yes. However, pension received from the United Nations Organisation is exempt.
Form ITR-V is an income tax return verification form generated after the taxpayer submits files income tax return and submits it to the income tax department. The ITR-V should be e-verified or must be sent to CPC Bangalore at “Income Tax Department – CPC, Post Box No – 1, Electronic City Post Office, Bangalore – 560100, Karnataka” for verification. The ITR processing takes place only if its verification is completed within 30 days from the date of return filling.
It is taxable if received while in service. Leave encashment received at the time of retirement is exempt in the hands of the Government employee. In the hands of non-Government employee leave encashment will be exempt subject to the limit prescribed in this behalf under the Income-tax Law.
The amount of HRA is required to be disclosed in the ITR under the column allowances to the extent exempt under section 10. section 10(3A) is the relevant section under which the amount of exempt HRA to be shown.
Least/minimum of the following is exempt (Not taxable/deducted from total HRA received)
(a) Actual amount of HRA received
(b) Rent paid Less 10% of salary
(c) 50% of salary if rented accomandation is situated at Kolkata, Chennai, Mumbai and Delhi
or
40 % of salary if the rented accomadation is situated at other than Kolkata, Chennai, Mumbai and Delhi.
In case of no rent is paid then exemption will be zero.
Yes but only to the extent of Rs. 2 lakh, however, losses other than losses under the head ‘Income from house property’ cannot be set-off while determining the TDS from salary.
Medical allowance is a fixed allowance paid to the employees of a company on a monthly basis, irrespective of whether they submit the bills to substantiate the expenditure or not. It is fully taxable in the hands of employee.
Exemption of transport allowance of Rs. 1600 p.m granted to an employee is discontinued with effect from A.Y 2019-20.
However, exemption of transport allowance of Rs. 3200 p.m granted to an employee who is blind or deaf and dumb or orthopaedically handicapped is still available.
Any profit or gain arising from transfer of a capital asset during the year is charged to tax under the head “Capital Gains”.
The taxability of capital gain depends on the nature of gain, i.e. whether short-term or long-term. Hence to determine the taxability, capital gains are classified into short-term capital gain and long-term capital gain. In other words, the tax rates for long-term capital gain and short-term capital gain are different. Similarly, computation provisions are different for long-term capital gains and short-term capital gains.
Shares bought and sold (long trades) or sold and bought (short trades) within a single trading day is known as intraday trading. The trader’s purpose in intraday trading is not to own the equity shares, but they want to take advantage of the short-term price movements and make profits the very same day. These profits are taxable.
Income Head: Profits and Gains from Business and Profession. Your income from intra-day trading will be considered as speculative business income. It is considered speculative because you are trading without intending to take the delivery (ownership) of the contract.
ITR Form for intraday trading: Since intraday trading is a business income, you must file ITR-3 and prepare financial statements. Explore which ITR to file.
ITR due date for intraday trading income:
31st July – if Tax Audit is not applicable
31st October – if Tax Audit is applicable