If you are a taxpayer, and file your Income Tax Return (ITR) before the due date, then you get two types of benefits.
Taxpayers who file ITR on due date are helped in claiming refund of excess tax paid and deducted during the financial year. Also, if the return is filed before the due date, the taxpayer can also forward his loss to the subsequent years.Also Read:In this plan of Vi, 2GB will not be available, 4GB data will be available, know how much validity will be
Normally, the last date for filing income tax returns in any financial year is July 31 (unless extended by the government). But due to the second wave of corona virus this year, the last date for filing income tax returns for the financial year 2020-21 has been extended till 30 September by the Central Board of Direct Taxes (CBDT). Before filing ITR, one must know about one’s eligibility, available tax slabs and deductions levied.
Who is required to file ITR
It is mandatory for individuals with an annual income of Rs 2.5 lakh or more to file ITR. For senior citizens (individuals between the age of 60 years and 80 years), the limit is Rs 3 lakh, while for very senior citizens (above 80 years of age), the limit has been capped at Rs 5 lakh.Also Read:Just spend 1 rupee every month and get 2 lakh life insurance… you can register like this
At present, there are two tax regimes available in the tax system. A new tax regime was announced in the Budget for the year 2020 giving taxpayers the option to pay taxes as per the new tax slabs from the financial year 2020-21. This new tax system has been made optional and is in existence along with the old tax system.
What was the old tax system?
According to this, if the total income of a person does not exceed Rs 2.5 lakh, then he does not have to pay any tax. If the income falls in the range of Rs 2.5 lakh to Rs 5 lakh, then 5 percent income tax has to be paid on it. However, those earning up to Rs 5 lakh can claim a deduction of Rs 12,500. Individuals with income between Rs 5 lakh to Rs 10 lakh have to pay income tax up to 20%. If the total income of a person is more than Rs 10 lakh, then 20 percent income tax has to be paid.