Income tax in India

The Income Tax is a direct tax that is imposed every year. The year-long count begins on 1st April through 31st March. The tax portal of the government www.incometax.gov.in offers a platform to submit the filing of your ITR filings and updates.

In India it is mandatory if your income exceeds Rs.2.5Lac in a year, or you are seeking to claim back the excess TDS that you have deducted.

Tax filing aids you speed up the process of home loans, business loans as well as your Visa procedure, and ensuring compliance in accordance with your obligations under the Act. for any advisory service on the Income-tax, Contact US today!

Income tax Act in India

The income tax is a Direct tax to be collected from Individuals, businesses, and other persons, who have a net taxable income above the limit specified by the Government of India.

Since the income tax is a Direct tax net income, it mainly covers Five Heads of income, namely Income from Salary, Income from House, Capital Gain, Income from Business or Profession, Income from Other sources like Bank interest, dividends, etc.

The Income-tax Act, 1961, has come into force with effect from 1^st April 1962. The Indian income-tax rules and regulations keep changing as each year’s finance bill is passed in Parliament.

Income tax Slab FY 2021-22

From the introduction of the New tax system with effect from FY 2020-21, there are 2 systems are following, one is the Old Tax rate with investment and savings exemptions another one is the New Tax rate without any investments and savings.

For Individual Resident –

Income	Rate of Tax under Existing Regime for FY 22-23, 21-22)			New Regime Slab Rates for FY 22-23, 21-22)
Income	Individuals with age less than 60 years or HUF	Individuals with age 60years or more but less than 80 years	Individuals with age 80 years or more	Applicable for All Individuals or HUF
Rs 0.0 to Rs 2.5 Lakhs	NIL	NIL	NIL	NIL
Rs 2,50,001 to Rs 3.00 Lakhs	5% (tax rebate u/s 87a is available)	NIL	NIL	5% (tax rebate u/s 87a is available)
Rs. 3,00,001 to Rs 5.00 Lakhs	5% (tax rebate u/s 87a is available)	5% (tax rebate u/s 87a is available)	NIL	5% (tax rebate u/s 87a is available)
Rs. 5,00,001 to Rs 7.5 Lakhs	20%	20%	20%	10%
Rs 7,50,001 to Rs 10.00 Lakhs	20%	20%	20%	15%
Rs 10,00,001 to Rs. 12.50 Lakhs	30%	30%	30%	20%
Rs. 12,50,001 to Rs. 15.00 Lakhs	30%	30%	30%	25%
Exceeding Rs. 15 Lakhs	30%	30%	30%	30%

1. In Addition to basic Income Tax as discussed above , Followings are also to be taken care of, Surcharge
Rs. 50 Lakhs to Rs. 1 Crore	Rs. 1 Crore to Rs. 2 Crores	Rs. 2 Crores to Rs. 5 Crores	More Than 5 Crores
10%	15%	25%	37%
– Health & Education Cess @4%

Tax rate For Business –

The Income tax rate is different for Businesses like Firms, companies, etc.

For Indian Companies (Domestic Company)

Where the Turnover is up to Rs.400 Crore, then the tax rate is 25%

Where the Turnover is more than to Rs.400 Crore, then the tax rate is 30%

Under section 115BAB, For the business, under manufacturing or production of any article or thing, from 31st March 2023 to 31st March 2024. The tax rate is 15%

For Partnership Firm.

For partnership firms tax rate is 30%

For Foreign Companies

For foreign companies, the normal tax rate is 40%, and their royalty payment, etc attracts 50%.

How to file income tax online?

Income-tax filings for individuals and business is free of cost.

Only the professionals who are assisting to file could be levied a fee for their services.

The First step to file for an income tax return is, log into Incometaxindia.gov.in

Select the Assessment year to be filed, and then the type of form to be filed, for example for salaries ITR 1, Enter the business income details, investments, exemptions, deductions details etc, as per the form specific as per applicable to business.

Once all the details are entered and validated, you can file your return online by verification through Aadar-based or DSC of the authorized person.

How to File by income tax India login?

The income tax india provides access to file all the person’s income-tax return in online.

The person who is holding pan, must login to Incometaxindia.gov.in by using its pan and login credentials.

Choose the applicable form for tax filing

The ITR -1 for individuals who has an income upto Rs.50Lac

The ITR-2 for Individuals who has income from Capital Gain

The ITR-3 for Individuals who has income from Business

The ITR-4 for Individuals business income upto 50 Lac can use this to compute u/s 44ad 44ada

The ITR-5 for Trusts, Not-for profit business to be selected.

The ITR-6 for Companies Like, Private Limited Company etc to be selected.

The Income tax Filing process in India.

Charges of tax & Income tax filing process

In India, the income-tax changeability is based on the residential status of the person and the income earned are matters.

The below are the main criteria for IT changeability in India.

Net taxable exceeds the basic limit of Rs.5 Lac for Individuals and HUF
To claim the income-tax refund
Individuals holding assets in foreign
If you have deposited Rs.1 cr and above
If you have spent Rs.1 lac and above for foreign travel
If your electricity consumption Rs.1 lac and above
If your business turnover is more then Rs.60 Lac
If gross receipt from the profession is more then 10 lac
If tds and TCS is Rs.25,000 and above
In the deposit of Savings bank is more then 50 Lac
The Registered Companies, Business

Income tax filings Steps in India.

The first step is to calculate your total income, deductions, and savings on the each header.

Summarize the total TDS as per the 26AS and tds certificate received.

Review the Annual information Information available in the Income-tax system

The next step is to choose the right form for filing and submit the details.

Benefits from ITR filings in Bangalore

as per Income-tax regulations, the personal income that exceeds the basic limit must file, however in other cases as per the criteria mentioned.

Below are the benefits.

Easy to claim the TDS refund if any tax deducted over and above the taxability
Loans from Banks can be arranged based on the ITR filings
Any capital gain losses could be get adjusted in future income
Quick visa process for foreign travels/ visits
Avoid the penalty from Income-tax for compulsory filings.

Takeaway: The Income-tax Act is a direct tax, chargeable on the person’s net-taxable income. the Income tax rates keep changing for each year based on every year’s finance bill. In some cases, the ITR filing is mandatory, but ITR filings help for easy access to loans, getting a TDS refund, and Visa process.

There is a famous saying “If you think compliance is expensive, try non-compliance”

If you need any assistance on the Tax Filings, Income-tax returns and Compliances, kindly reach us to support you, feel free to reach us, we are a one-stop solution for all the Income tax in India, compliance, to build strong business support.

Get in Touch for Income-tax Service

In India, income tax is a tax levied on the taxable income of individuals, businesses, and other entities. The income tax rate varies depending on the amount of income earned and the category of the taxpayer (e.g., individual, company, trust).

A company consultant like Cs or Ca can play a valuable role in helping a business to benefit from income tax. They can provide guidance on how to minimize tax liability, identify tax deductions and credits that may be available, and help the business to comply with tax laws and regulations.

Here are a few ways in which a company consultant may be able to help a business benefit from income tax:

Tax planning:

A company consultant can help the business to develop a tax strategy that maximizes tax savings and minimizes tax liability. This may involve identifying tax deductions and credits that the business is eligible for, and structuring the business in a way that maximizes tax benefits.

Tax compliance:

A company consultant can help the business to comply with tax laws and regulations, including filing tax returns and paying taxes on time. This can help the business to avoid penalties and fines, and maintain a good relationship with the tax authorities.

Tax dispute resolution:

If the business is facing a tax dispute or audit, a company consultant can provide guidance and representation to help resolve the issue.

Overall, our company consultant can play a valuable role in helping a business to minimize tax liability, comply with tax laws, and resolve any tax disputes that may arise.

GET IN TOUCH

Income tax in India

Income-Tax Table