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ITR filing: Quick recap of eligibility and exemption limits

ITR filing: Quick recap of eligibility and exemption limits

ITR filing: Quick recap of eligibility and exemption limits
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By Anshul  Aug 12, 2021 9:01:22 AM IST (Published)

Income Tax Return (ITR) filing helps individuals in claiming the refund of the excess tax paid/deducted during a financial year. If the return is filed within the due date, taxpayers are able to carry forward losses to subsequent years, which can be used to set off against income of subsequent years.

Income Tax Return (ITR) filing helps individuals in claiming the refund of the excess tax paid/deducted during a financial year. If the return is filed within the due date, taxpayers are able to carry forward losses to subsequent years, which can be used to set off against income of subsequent years.

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Generally, taxpayers are required to file ITR by July 31 of any year (unless extended by the government). This year, the Central Board of Direct Taxes (CBDT) has extended the last date for filing ITR for FY2020-21 (AY2021-22) to September 2021 in view of the COVID-19 second wave.
Before filing ITR, it's important to know about one's eligibility, tax slabs available and deductions levied.
How are taxpayers classified under income tax law?
Individual taxpayers (including residents as well as non-residents) are classified into three categories: those below 60 years of age, senior citizens (60-80 years) and super senior citizens (above 80 years).
Who is required to file ITR?
Filing ITR is mandatory for individuals having an annual income of Rs 2.5 lakh or more. For senior citizens (individuals between 60 years and 80 years of age), the limit is Rs 3 lakh, and for very senior citizens (aged above 80 years), the limit is Rs 5 lakh.
How many tax regimes are available currently?
As of now, there are two tax regimes existing in the tax system. Budget 2020 announced a new tax regime giving taxpayers an option to pay taxes as per the new tax slabs from FY 2020-21. This new tax system has been made optional and continues to co-exist with the old one.
What is the different structure as per the new tax regime?
Here are the income tax slabs under the new tax regime:
Income Tax SlabTax Rate
Up to Rs 2.5 lakhNIL
Rs 2.5 lakh to Rs 5 lakh5% (Tax rebate of Rs 12,500 available under section 87A)
Rs 5 lakh to Rs 7.5 lakh10%
Rs 7.5 lakh to Rs 10 lakh15%
Rs 10 lakh to Rs 12.5 lakh20%
Rs 12.5 lakh to Rs 15 lakh25%
Rs 15 lakh and above30%
What is the tax structure as per the old tax regime?
If the total income of an individual is not more than Rs 2.5 lakh, the tax rate is nil. If the income falls in Rs 2.5 lakh-Rs 5 lakh bracket, 5 percent income tax is payable. However, those earning up to Rs 5 lakh can claim a rebate of Rs 12,500. For individuals earning Rs 5 lakh to Rs 10 lakh, tax is deducted at the rate of 20 percent. If the total income of an individual is more than Rs 10 lakh, 20 percent tax is payable.
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