Generally, income tax is an annual tax charged on an individual's earnings. Based on the amount of income earned over the course of a fiscal year, you have to pay tax. Online payments are available for income tax filing, TDS/TCS filing, and Non-TDS/TCS filing. To use these services, taxpayers need to enter the relevant information. Once information is entered, the process is simple.
All residents earning over ₹ 2.5 lakh annually shall be subject to income tax for FY 2021-22. An individual who earns more than ₹ 10 lakh p.a. will have to pay a tax of 30% of their earnings plus 4% cess.
In a financial year, filing an ITR is mandatory if an individual's gross total income exceeds ₹ 2,50,000. Senior citizens are allowed a maximum of ₹ 3,00,000 and super senior citizens are allowed a maximum of ₹ 5,00,000. Taxes must be paid and income tax returns filed by the entities listed below:
New income tax slabs were announced by the Finance Minister of India in the Union Budget 2020. Tax filers can choose to opt for the new income tax regime or to continue filing their taxes according to the old one.
| Income Tax Slab | Tax Rate |
|---|---|
Up to ₹ 2,50,000 |
Nil |
From Rs.2,50,001 to Rs.5,00,000 |
5% |
From Rs.5,00,001 to Rs.7,50,000 |
10% |
From Rs.7,50,001 to Rs.10,00,000 |
15% |
From Rs.10,00,001 to Rs.12,50,000 |
20% |
From Rs.12,50,001 to Rs.15,00,000 |
25% |
Income above Rs.15,00,001 |
30% |