5 benefits of filing income tax return on time

The Government of india levies a direct tax on an individual’s income either it is from salary or profit from the business is known as income tax.Income tax is a major source of revenue generation of the government,the revenue generated through the collection of tax is used in various development schemes and projects which helps our nation to improve the infrastructure,providing public properties and other territorial departments like defence.The major part of income tax proceedings has been used to provide salaries of govt emplyees by the government.

Income Tax Slabs (Updated)

The calculation of income tax depends on three major factors of the tax payers these are income of the taxpayer,type of the income and the age of the taxpayer.Govt of India has issued certain guidelines for proceedings of income tax from individuals

Income Tax slabs applicable for Individuals and Hindu Undivided Family (HUF) less than 60 years old – Part (A):

 

 

Annual Income Tax Rates Health and Education Cess
Up to Rs.2.5 lakh* Nil Nil
Rs.2,50,001-Rs.5 lakh 5% 4% of Income Tax
Rs.5,00,001-Rs.10 lakh 20% 4% of Income Tax
Above Rs.10 lakh 30% 4% of Income Tax

 

Surcharge: When the total income is Rs.50 lakh or more but less than Rs.1 crore, the surcharge is 10% of the income tax.

Surcharge: When the total income is more than Rs.1 crore, the surcharge is 15% of the income tax.

*For the Financial Year 2018-2019, the income tax exemption limit is up to Rs.2.5 lakh for individual and Hindu Undivided Family (HUF) except those who are covered under Part (B) or Part (C).

 

Income Tax slabs applicable for Senior Citizens who are 60 years old or higher, but less than 80 years old – Part (B):

Annual Income Tax Rates Health and Education Cess
Up to Rs.3 lakh* Nil Nil
Rs.3,00,001-Rs.5 lakh 5% 4% of Income Tax
Rs.5,00,001-Rs.10 lakh 20% 4% of Income Tax
Above Rs.10 lakh 30% 4% of Income Tax

Surcharge: When the total income is Rs.50 lakh or more but less than Rs.1 crore, the surcharge is 10% of the income tax.

Surcharge: When the total income is more than Rs.1 crore, the surcharge is 15% of the income tax.

*For the Financial Year 2018-2019, the income tax exemption limit is upto Rs.3 lakh except for those who are covered under Part (B) or Part (C).

Income Tax slabs applicable for Senior Citizens who are 80 years old or more – Part (C):

Annual Income Tax Rates Health and Education Cess
Up to Rs.5 lakh* Nil Nil
Rs.5,00,001-Rs.10 lakh 20% 4% of Income Tax
Above Rs.10 lakh 30% 4% of Income Tax

 

Surcharge: When the total income is Rs.50 lakh or more but less than Rs.1 crore, the surcharge is 10% of the income tax.

Surcharge: When the total income is more than Rs.1 crore, the surcharge is 15% of the income tax.

*For the Financial Year 2018-2019, the income tax exemption limit is upto Rs.5 lakh except for those who are covered under Part (A) or Part (B).

Tax Deducted at Source (TDS) has to be deducted at applicable rates as mentioned above along with the surcharge and Health and Education Cess.

Income Tax slabs applicable for Domestic Companies – Part (D):

Turnover Particulars Tax Rate
If the gross turnover in the previous year is less than Rs.250 crore 25%
If the gross turnover in the previous year is more than Rs.250 crore 30%

 

Additional rates which are applicable:

Cess: 4% of the corporate tax

Surcharge: When the taxable income is higher than Rs.1 crore but less than Rs.10 crore, the applicable surcharge will be 7%.

Surcharge: When the taxable income is higher than Rs.10 crore, the applicable surcharge will be 12%.

 

So above are the slabs for income tax filing with the knowledge of tax slabs it is really important to file income tax return on time here are 5 benefits of filing income tax return on time

(i) Hassle free loan processing: Filing Income tax return on time helps you to have a better credibility among banks and financial institutes which helps to provide better and hassle free process of loans and credit limits.

(ii) TDS refunds: One can claim TDS refund by showing income tax return if TDS has been deducted from income.

(iii) Address proof: Tax assessment order can be used as an address proof for applying ID proofs like adhaar and Voter ID.

(iv) Avoid Penalties: If you file your income tax return on time you avoid various penalties which occur in failing of on time return filing.From FY 2017-18 a fine of INR 10000 will be charged in case of not filing income tax returns on time.

(v) Encumbrance of losses: In case a person has faced certain losses from business or sale of property or capital assets,profession or from income,then it can be carried forward for 8 years , for set off against other income can be done if that person has filed income tax return within the prescribed due dates.

So in case you are going to start a business or you are a salaried person you need to file your income tax return on time to avail the benefits and live a respectful life and like a responsible citizen of india.

You can also read my article GST tax slabs in india revised to know more about GST goods and service tax slabs.



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