All Indian citizens, with a gross total income of over Rs 2.5 lakh, have to file Income Tax returns (ITR).
It can be paid online at the official e-filing portal: incometaxindiaefiling.gov.in.
With the deadline to file Income Tax returns extended till August 31, here are few things you should keep in mind when you file the return:
- ITR in India is paid according to a slab system. The government has categorised taxpayers into different groups based on their annual income. These groups are referred to as tax slabs. This year, Finance Minister Nirmala Sitharaman announced in her Union Budget 2019-20 speech that there would be no change in the tax slabs for individuals.
- While it is not mandatory to file an income tax return if your annual income is below Rs 250,000. However, even those who are out of the tax net should file it with an option of ‘Nil Return’ to maintain an employment record.
- There are three categories of individual taxpayers- individuals (below the age of 60 years), senior citizens (60 years and above but below 80 years) and super senior citizens (above 80 years).
- Meanwhile, for senior citizens above 60 years of age, the income tax exemption slab begins at Rs 3,00,000. For citizens earning income between Rs 3,00,001 and Rs 5,00,000 have to pay 5 per cent tax, while those with income above Rs 5,00,001 but below Rs 10,00,000 have to pay 20 per cent tax. Those earning over Rs 10,00,000 will attract income tax of 30 per cent.
- For very senior citizens above 80 years, the income tax exemption limit is Rs 5,00,000. Those with income between Rs 5,00,001 and Rs 10,00,000 have to pay 20 per cent tax while those earning above Rs 10,00,000 have to pay a 30 per cent tax.
- There are several types of forms for filing of income tax return available online. The department is providing pre-filled ITR-1, ITR-2, ITR-3 and ITR-4 forms while there are also ITR-5, ITR-6 and ITR-7 forms available.
- Due verification is also required once you have filed the ITR. It can be done through five different ways: Aadhaar OTP, bank ATM, bank account, Demat account and net banking.