Income Tax and Income Tax Filing in India.

Income tax returns or ITR filing is done by a taxpayer based on the income generated by an individual or a business in a financial year.

The Income Tax Return Filing for individuals depends on the annual income earned. Some individuals are exempted from tax by the government, and that depends on the income slab provided by the Income Tax department. They fall in the lower limit of the taxable income bracket.

The Tax Filing season in India falls in the month of March.

For instance, an individual with an annual income of less than 3 Lakh will not be taxed, and the following are the percentages to calculate the tax for annual income above 3 Lakh.

Income tax slab Income tax rate
Rs.3 lakh – Rs.6 lakh 5%
Rs.6 lakh – Rs.9 lakh     10%
Rs.9 lakh – Rs.12 lakh 15%
Rs.12 lakh – Rs.15 lakh  20%
Above Rs.15 lakh 30%

To add to the above, the government has changed the process of income tax filing. This Income Tax scheme came into action this year- 2023. It was announced by The Union Finance Minister, Smt. Nirmala Sitharaman. The table below will give you a clearer idea of how the tax is calculated and deducted.

Here is an example considering the income to fall into the 12-15 lakh slab

Total Income (Gross)12 lakh
Deductions (80C, 80CCD)
Travel and Medical Allowance
Income that is TaxableRs.12 lakh
Up to Rs.3 lakh
Above Rs.3 lakh – Rs.6 lakhRs.15,000
Above Rs.6 lakh – Rs.9 lakhRs.30,000
Above Rs.9 lakh – Rs.12 lakhRs.45,000
Above Rs.12 lakh – Rs.15 lakh
Total Tax that must be PaidRs.90,000

This information will be useful for the end of the financial year or tax filing season, as it is otherwise known.

Income tax return filing is a required part of maintaining a business in India. Businesses will have to make business tax payments in advance in order to stay compliant with the income tax act. Income tax for businesses is calculated at 30%, however, an added surcharge of 7% is for businesses that have a net income ranging from one crore up to 10 crores.

Steps for file Income Tax via eportal.

Step 1: Enter the following web address into your browser –

Step 2: If it is your first time, register yourself on the website. In case you have already registered yourself, log in to e-file your returns. The following steps are for those who are registering for the first time.

Step 3: Enter your PAN details after you click on the TAXPAYER tab. After entering your PAN details, click on validate.

Step 4: Provide your other essential details, such as an address, date of birth, marital status and gender, etc.

Step 5: Enter your registered mobile number and email address that you use for all important purposes.

Step 6: Click on continue once you are done with filling out the form.

Step 7: Your details will be verified using an OTP–OneTime Password. This will help validate your email address and phone number.

Step 8: Upon entering the OTP, one should complete the rest of the registration process. 

Step 9: A new window will open where you will have to verify the details which you have provided. In case any detail given is incorrect, this is the time for any modifications and alterations. This will also be verified using an OTP.

Once you have registered, it is now time to file your ITR through the e-portal. 

1. Once you have logged in, click on the e-file tab, followed by income tax returns, and then file income tax returns.

2. Select the year for which you wish to file your ITR and click continue.

3. It will then direct you to a page which will ask you whether you wish to file the ITR online or offline. 

4. Upon choosing online, the next page will ask under which category you would like to file, i.e., Individual, HUF (Hindu unified family) or others. 

– Select an individual for your personal tax filing. 

5. Choose the ITR form according to your income category. 

6. Choosing the appropriate category for taxation according to many factors which are other than income. 

7. Fill in the details of your bank account if you haven’t already. 

8. You will be redirected to another page where all your details will be prefilled. You must go over the information and then validate it.

9. The final step is to verify your returns and print out a hard copy to be sent to the Income Tax Department for verification, which is mandatory. 

While there are some companies that deal with filing of Tax on your behalf, the government has made it very easy to understand and has simplified the Income Tax Return Filing through their website. Make sure all your details are correct before the final step and submit your taxes on time.

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