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Income Tax Returns
Navigating Income Tax Returns: Your Comprehensive Guide
Income Tax Returns
According to the Income Tax Act, everyone in India, whether resident or nonresident, has to file income tax returns.
Currently, tax is payable if the income exceeds Rs 2.5 lakh in a financial year. The Income Tax Act has classified taxpayers into various categories. Different tax rules apply to different types of taxpayers.
Taxpayer Categories
- Individuals
- Hindu Undivided Family (HUF)
- Firms
- Companies
- Association of Persons (AOP)
- Body of Individuals (BOI)
- Local Authority
- Artificial Judicial Person
Taxpayers and Tax Slabs
Empowering Business Owners
Each of these taxpayers is taxed differently under the Indian income tax laws. While firms and Indian companies have a fixed rate of tax calculated on taxable income, the individual, HUF, AOP and BOI taxpayers are taxed based on the income slab they fall under. People’s income grouped into blocks are called tax brackets or tax slabs. And each tax slab has a different tax rate. The rate at which the tax is charged increases as the taxable income increases.
What is the Existing/Old Income Tax Regime?
Empowering Business Owners
Each of these taxpayers is taxed differently under the Indian income tax laws. While firms and Indian companies have a fixed rate of tax calculated on taxable income, the individual, HUF, AOP and BOI taxpayers are taxed based on the income slab they fall under. People’s income grouped into blocks are called tax brackets or tax slabs. And each tax slab has a different tax rate. The rate at which the tax is charged increases as the taxable income increases.
Income Tax Slabs Under New Tax Regime
A new tax regime was introduced with lower tax rates and limited deductions/exemptions for Individuals and HUFs. Hence, many taxpayers did not opt for the new tax regime. However, to encourage taxpayers to adopt the new tax regime in Budget 2023.
Income Tax Return Forms
01
ITR-1
Individuals (residents) having income from salary, one house property, other sources, agricultural income less than Rs 5,000 and with a total income of up to Rs 50 lakh.
02
ITR-2
Individuals/HUFs not having any business or profession under any proprietorship, more than one house property.
03
ITR-3
Individuals/HUFs having income from a proprietary business or profession, income of a person as a partner in a firm.
04
ITR-4
Individuals/HUFs having presumptive income from business or profession, one house property.
04
ITR-5
Partnership firms or LLPs.
04
ITR-6
Companies.
04
ITR-7
Trusts.
Embracing the Income Tax Returns
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