Income tax return (ITR) is a form that declares the gross taxable income of an earning individual.
Filing regular ITR ensures the individual is a responsible taxpayer. ITR is a vital document for numerous financial functions tasks, including as a documentation to avail financial products like home loans.
Changes in IT slabs
As per the Income Tax Act of 1961, individuals under 60 years of age earning a total of Rs.2.5 lakh p.a. or more are required to file an ITR.
However, during Budget 2020, the income tax slab was reworked. Taxpayers can choose between the old regime with higher tax rates and the new one with lower tax rates.
Nonetheless, any income tax exemptions on home loans or any other loans can only be availed if they choose to file ITR in the old regime. The new tax system does not offer any tax exemptions.
Eligibility
Individuals eligible to file ITR are as follows –
Between 60 to 80 years of age with Rs.3 lakh or higher income p.a.
Above 80 years of age with an annual income of more than Rs.5 lakh.
Companies and organizations are irrespective of the state of their business.
Indian residents in possession of an asset or ties to international facilities.
Online ITR filing
The new ITR filing policies mandate e-filing income tax services. This means that any filing of income tax returns has to be done via the official website.
These are some of the many ITR filing points an individual should know before submitting their forms for that financial year.
