1) Who all need to file their tax returns?
If your gross total income (excluding deductions) exceeds the basic exemption limit of income above which tax is charged, you need to file ITR.
People spending over ₹2 lakh on a foreign trip, depositing ₹1 cr in a year in a bank account or paying power bill of over ₹1 lakh in a year, need to file ITR.
For assessment year 2019-20, this limit is ₹2.5 lakh for individuals below the age of 60 years, ₹3 lakh for senior citizens (between 60 and 80 years) and ₹5 lakh for super senior citizens (above 80 years of age).
- If you want to claim a tax refund or want to carry forward a loss, filing ITR is mandatory.
- Due date for filing ITR relating to FY 2019-20 (AY 2020-21) is 30th November
Rebate u/s 87A
Under section 87A, the individual is allowed to rebate income tax maximum upto ₹ 12500 from FY 2019 -20. (Previously it was ₹ 2500, which is amended in Budget 2019)
Old vs New Income Tax Regime
| INCOME TAX RATES for INDIVIDUAL & HUF | ||
| Taxable Income Slab (‘) | Existing Tax Rates (with deductions) | New Tax Rates (Without deductions) OPTIONAL |
| 0-2.5 Lakh | Exempt | Exempt |
| 2.5-5 Lakh | 5% | 5% |
| 5-7.5 Lakh | 20% | 10% |
| 7.5-10 Lakh | 20% | 15% |
| 10-12.5 Lakh | 30% | 20% |
| 12.5-15 Lakh | 30% | 25% |
| Above 15 Lakh | 30% | 30% |
| Note: if you have income upto Rs. 5 Lakh only.You are eligible for rebate max of Rs. 12,500 u/s 87A thus NO TAX on income upto Rs. 5 lakh. | ||
| *Note: The new tax regime shall be optional for the tax payers. An individual who is currently availing more deductions & exemption under the Income Tax Act may choose to avail them and continue to pay tax in the old regime | ||
- From Assessment Year 2021-22 (FY 2020-21), a tax assessee will have to select either new tax rates or old rates, one needs to do some calculations before arriving at a decision.
- Can you choose between existing Income tax regime and new Tax regime every Assessment year?
- A taxpayer having no business income can opt for the existing regime or the new tax regime every year upon analyzing what is more beneficial.
- If you are a Tax Assessee who file ITR-1 or ITR-2, you can choose between the old and new regime (section 115BAC) every assessment year. You have to exercise your choice year.
- If you are Tax Assessee with business income than can not Change.
- As per the new tax structure, if you wish to opt for the New Tax Slab Rates, then you will have to give up existing Income Tax Deductions and Exemptions, like HRA, Section 80C, and Home loan benefits etc.
- New tax slabs will be applicable from 1st April 2020 to 31st March 2021.
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