Income Tax is a type of tax imposed on individuals and entities earning income or profits that cross certain thresholds. These taxes are a source of income for the government, which it utilises for various functions like: 

  • To develop infrastructure

  • Provide healthcare and improve sanitation

  • Promote education and introduce welfare schemes

 

To calculate your tax liability, you need to multiply the tax rate by your taxable income. However, tax rates may vary depending on the type of taxpayer and the type of income. Hence, it is imperative to ascertain the tax slab you belong to.

 

Since income tax is a vast and crucial topic, read on to learn everything about income tax in India.

Who is Liable to Pay Income Tax?

Every โ€˜personโ€™, be it natural or artificial, as defined in Section 2(3) of the Income Tax Act of 1961, must pay tax. The tax authorities divide them into the following categories:

  • Individuals 

  • Hindu Undivided Families (HUFs)

  • Association of Persons (AOPs)

  • Body of Individuals (BOIs)

  • Firms, LLPs, and Companies

  • Local authority

  • Any other artificial juridical person

Income Tax E-Filing Due Dates for FY 2022-23 (AY 2023-24)

The Income Tax Department sets due dates for different activities each assessment year. You need to file your Income Tax Return (ITR) for the previous financial year before the deadline to avoid attracting a penalty.

 

A financial year is the year in which you earn income. On the other hand, an assessment year is the period in which the returns were filed, i.e. the subsequent year. Both start and end on April 1 and March 31, respectively.

 

Here are the details of the due dates for filing income tax returns for Assessment Year 2023-24. The revised tax extension dates are as follows:

Taxpayer Category

Due Date for Tax Filing (FY 2022-23)

Individual / HUF/ AOP/ BOI

(books of accounts not required to be audited)

July 31, 2023

Businesses (Not Requiring Audit)

October 31, 2023

Businesses (Requiring Audit Report)

November 30, 2023

(extended from November 31, 2023)

Additionally, check out the due dates for the Tax Deducted at Source (TDS) return. These are as follows:

Filing TDS return for Quarter 4 of FY 2023-24

May 31, 2024

Furnish the TDS Certificate to employees in Form No. 16 for December

February 14, 2024

Income Tax Structure: New vs Old Regime

With the Union Budget 2020, the Finance Ministry of India released a new income tax structure that came into effect from April 1, 2020. However, this new income tax regime is optional. 

 

Taxpayers can either opt for it or continue using the old income tax structure at the start of each financial year (FY). This choice allows taxpayers to choose one that has suitable income tax rates, basis their income. 

 

The following table gives a brief overview of the tax slabs under the two income tax regimes:

Annual Income

Old Income Tax Regime

New Income Tax Regime

(From April 1, 2023)

Up to โ‚น2.5 Lakhs

Exempt / Nil

Exempt / Nil

Between โ‚น2.5 Lakhs and โ‚น5 Lakhs

5%

5%

Between โ‚น5 Lakhs and โ‚น7.5 Lakhs

20%

10%

Between โ‚น7.5 Lakhs and โ‚น10 Lakhs

20%

15%

Between โ‚น10 Lakhs and โ‚น12.5 Lakhs

30%

20%

Between โ‚น12.5 Lakhs and โ‚น15 Lakhs

30%

25%

Above โ‚น15 Lakhs

30%

30%

Tax Rate for Senior Citizens

Taxpayers above the age of 60 years and less than 80 years are considered senior citizens as per the Income Tax Act of 1961. The following table gives an overview of the income tax slabs (old and new) for senior citizens.

Old Tax Regime

New Tax Regime u/s 115BAC

Income Tax Slab

Income Tax Rate

Income Tax Slab

Income Tax Rate

Up to โ‚น3,00,000

Nil

Up to โ‚น2,50,000

Nil

โ‚น3,00,001 - โ‚น 5,00,000

5% above โ‚น3,00,000

โ‚น2,50,001 - โ‚น5,00,000

5% above โ‚น2,50,000

โ‚น5,00,001 - โ‚น 10,00,000

โ‚น10,000 + 20% above โ‚น 5,00,000

โ‚น5,00,001 - โ‚น7,50,000

โ‚น12,500 + 10% above โ‚น5,00,000

Above โ‚น10,00,000

โ‚น1,10,000 + 30% above โ‚น10,00,000

โ‚น7,50,001 - โ‚น10,00,000

โ‚น37,500 + 15% above โ‚น7,50,000

 

 

โ‚น10,00,001 - โ‚น12,50,000

โ‚น75,000 + 20% above โ‚น10,00,000

 

 

โ‚น12,50,001 - โ‚น15,00,000

โ‚น1,25,000 + 25% above โ‚น12,50,000

 

 

Above โ‚น15,00,000

โ‚น1,87,500 + 30% above โ‚น15,00,000

Income Tax Calculation

You can either calculate income tax manually or use an online income tax calculator. The amount of tax payable to the government depends on the tax applicable to you. For salaried individuals, their income from salary includes multiple components like: 

  • House Rent Allowance (HRA)

  • Transport Allowance

  • Children Education Allowance (CEA)

 

A few components of a salary are exempt from tax. So, while calculating TDS on salary, it is imperative to ensure you have subtracted relevant tax exemptions from your total income. Along with the exemptions, salaried people can also avail of a standard deduction of โ‚น50,000.

 

Moreover, you can also pay your income tax online, and in advance. Calculating your tax liability beforehand and paying your taxes accordingly is called advance tax. However, if you want to follow advance tax, here are a few important dates you must remember:

Due Date

Advance Tax Payable

On or before June 15

15% of advance tax

On or before September 15

45% of advance tax

On or before December 15

75% of advance tax

On or before March 15

100% of advance tax

About Income Tax Department India

The Income Tax Department is a government agency that undertakes the duty of collecting direct tax in India. Every operation of this department is handled by CBDT (Central Board for Direct Taxes). 


You can visit their official website to garner information on international taxation, tax laws and rules, organisational setup, etc.

Income Tax Act of 1961

Introduced in 1961, the Income Tax Act of India manages all income tax provisions and tax deductions applicable to each individual. The Act has witnessed countless changes and amendments to tackle various economic crises ever since it was passed.  

 

The Income Tax Rules, 1962, were created to effectively enforce the law legislated by the Act. Furthermore, the Income Tax Rules can only be read along with the Income Tax Act. These rules complement the Income Tax Act and do not override its provisions.

How to Check ITR Status Online

The ITR status facility is available in two ways:

  • Pre-Login

  • Post-Login

 

Both options are fairly simple, much like the process of paying tax online, and you can follow the guides below.

Steps to Check ITR Status (Pre-Login)

Follow the steps below if you opt for the pre-login facility to check your ITR status online:

  1. Go to the new ITR e-Filing portal (www.incometax.gov.in/iec/foportal/)

  2. On the homepage, select Income Tax Return (ITR) status

  3. Enter your Acknowledgement Number and registered mobile number to continue

  4. You will receive a six-digit OTP on your registered number. Enter it and select โ€˜Submitโ€™

  5. On successful validation, you will be able to view your ITR status online

Steps to Check ITR Status (Post-Login)

Follow the steps below if you opt for the post-login facility to check your ITR status online:

  1. Log in to the new income tax website or the IT e-Filing portal (www.incometax.gov.in/iec/foportal/) using your credentials

  2. Select the option โ€˜e-Fileโ€™ > โ€˜Income Tax Returnsโ€™ > โ€˜View Filed Returnsโ€™

  3. On the โ€˜View Filed Returnsโ€™ page, you will be able to view all the returns you have filed historically

 

You can also browse through the various tax-saving tools available on Bajaj Markets. The investment options available on our platform not only allow you to save on tax but also secure your financial future.

Frequently Asked Questions

What is exempt income and taxable income?

Tax exemptions are among the various tax benefits provided by the government. If an income is tax-exempt, it will not be considered for the computation of income tax. On the other hand, the incomes which have to be considered for taxation purposes are known as taxable income.

What income is not taxable?

Certain income does not fall under the income tax ambit and is exempted entirely. Such sources of income are scholarships or awards, agricultural income, income from gratuity, and allowance for foreign services.

What are the tax benefits?

Tax laws that help in reducing the tax liability of eligible entities are known as tax benefits. Tax exemptions and deductions are examples of tax-saving benefits. The quantum of tax savings depends on the type of tax benefit sought as there are various forms of tax savings.

What is ITR e-filing?

There are two ways in which you can file your ITR or pay income tax, i.e. online or offline. ITR e-Filing or electronic filing is a digital method of submitting your income tax return online. The online income tax payment process is a lot more convenient.

Know Your Tax Liability | Calculate Your Income Tax Now! Calculate Tax
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