Income Tax Return Filing:

Filing of IT returns is a must and right of an individual or a business. Regular filing of Income Tax return will enhance the credibility of a person. Once your income tax return is filed, you can claim the refund on the excess income.

Income Tax return filing in India is applicable to any individual who is earning. The income can be in the source of salary, rental income, income from a business or profession, income from other sources and income from capital gains.

The due date for filing the income tax returns is fixed by the government and a certain tax slab is fixed on the total income which varies for different income range. The government keeps changing the tax compliances and individuals should file their returns on time to avoid further penalties, and benefits to be received.

Income Tax Slabs for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY 2017-18 – Part I

Income Tax Slabs Tax Rate Health and Education Cess
Income up to Rs 2,50,000* No tax
Income from Rs 2,50,000 – Rs 5,00,000 5% 3% of Income Tax
Income from Rs 5,00,000 – 10,00,000 20% 3% of Income Tax
Income more than Rs 10,00,000 30% 3% of Income Tax

Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

Income Tax Slabs for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) for FY 2017-18 – Part II

Income Tax Slabs Tax Rate Health and Education Cess
Income up to Rs 3,00,000* No tax
Income from Rs 2,50,000 – Rs 5,00,000 5% 3% of Income Tax
Income from Rs 5,00,000 – 10,00,000 20% 3% of Income Tax
Income more than Rs 10,00,000 30% 3% of Income Tax

Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

Income Tax Slabs for Senior Citizens(80 Years Old Or More) for FY 2017-18 – Part III

Income Tax Slabs Tax Rate Health and Education Cess
Income up to Rs 5,00,000* No tax
Income from Rs 5,00,000 – 10,00,000 20% 3% of Income Tax
Income more than Rs 10,00,000 30% 3% of Income Tax

Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

Income Tax Slabs for Domestic Companies for FY 2017-18 – Part IV

Turnover Particulars Tax Rate
Gross turnover upto 50 Cr. in the previous year 2015-16 25%
Gross turnover exceeding 50 Cr. in the previous year 2015-16 30%

In addition cess and surcharge is levied as follows: Cess: 3% of corporate tax Surcharge: Taxable income is more than 1Cr. but less than 10Cr.: 7% Taxable income is more than 10Cr. :12%

Benefits of Filing Income Tax Return on time:

  • Individuals can forgo the penalties which vary for the taxpayers. Like for eg. In the financial year 2017-2018, government of India has fixed a penalty of 5000/- for late filing of returns between August 1st 2018 to December 31st 2018. For individuals filing after 31st December 2018 to March 31st 2018, the penalty is 10,000/-. For those whose income is below 5 lakh it will be 1,000/-.
  • Individuals can earn an interest of 0.5% if they claim for a refund on excess of tax paid and if the income tax department delays in the payment of refund.
  • Avoid the load of being charged of interest for late filing. As per section 234A of The Income Tax Act, there is a certain interest fixed for people filing the returns late only if there is any tax liability due from the taxpayer’s end.
  • You will lose the advantage to advance your losses for the next year if any from the aforesaid income groups like income from salaries, income from capital gains, self earned income from any business or profession or income from other sources.

How to File Income Tax Return

Filing of income tax returns has become less complicated and with the growth of technology it has become way easier to do it. You can also take the advice of expert tax consultants at Aavana for filing of your income tax returns. We strive in offering you with best of services and help in filing your taxes quickly ensuring that we maintain the confidentiality of any information or data provided by you.

Basic steps to E-File Income Tax Return

  • Have your important documents ready like PAN, Aadhar, Bank account details, Investment details and Form 16
  • Enter personal Information
  • Enter Salary Details
  • Furnish Deduction claim particulars
  • Details on taxes paid
  • Give your bank account particulars and move for e-filing
  • Once done E-Verify details.
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