How To File Income Tax Returns?
Income tax is levied on the basis of a slab system. This means, different tax rates are prescribed for different ranges of income.
Every salaried individual whose pay is beyond a particular income slab, needs to pay tax to the Government annually.
Income tax is levied on the basis of a slab system. This means, different tax rates are prescribed for different ranges of income.
It means the tax rates keep increasing with a rise in the income of the taxpayer. This type of taxation enables progressive and fair tax systems in the country. Such income tax slabs tend to undergo a change during every budget.
These slab rates are different for different categories of taxpayers. Income tax has classified three categories of “individual “taxpayers such as:
Individuals (aged less than of 60 years) including residents and non-residents
Resident Senior citizens (60 to 80 years of age)
Resident Super senior citizens (aged more than 80 years)
New Income Tax Slabs For Financial Year 2021-22 And Assessment Year 2022-23
Due to the crisis that the country faced during 2020, the Central Government had decided not to make any changes to the income tax slab for financial year 2020-21 and carry it on it the new FY 2021-22.
However, there was an exemption made towards the new slab. According to this, senior citizens over the age of 75 who are largely dependent on their pension as well as income interests have been exempted from having to fill out tax returns.
In their cases, TDS (Tax Deducted of Source) will automatically be deducted by banks.
Tax Slab Rates difference between New Tax Regime and Old Tax Regime for FY 21-22 & AY 22-23
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