New Delhi, Business Desk: Attention all honest taxpayers! The deadline for filing your Income Tax Return (ITR) is quickly approaching on July 31, 2023.
If you’re looking to legally save on taxes and exercise your rights, this news is for you.
Important Considerations:
Before filing your ITR, it is crucial to ensure that you haven’t made significant investments in any tax-saving instruments.
Under the new tax regime, taxpayers are encouraged to pay income tax at lower rates to avoid exemptions under various sections such as 80C or 80D of the income tax law.
Understanding the Tax Percentages:
If your income falls between Rs 10 lakh to Rs 15 lakh and you have chosen the new tax regime, you are not required to pay tax at the maximum rate of 30 percent.
Instead, the tax rate ranges from 20 to 25 percent.
On the other hand, if you have opted for the old tax regime, you will have to pay tax at a constant rate of 30 percent.
It’s worth noting that 30 percent is the highest tax rate in both tax slabs.
Taking Advantage of the Tax Regimes:
In India, you have the option to file your income tax return under either the new tax regime or the old tax regime.
For those selecting the new tax regime, it is necessary to submit Form 101E before filing taxes for the current financial year.
This declaration aids the government in assessing your tax liability accurately.
Beware of Fines:
It’s important to remember that both tax systems have different tax slabs, each with its own advantages and disadvantages.
The maximum tax rate of 30 percent applies to both regimes. Failing to file your ITR by the deadline may result in interest and penalties.
Stay informed and make the most of the tax benefits available to you.
Don’t forget to file your ITR by July 31, 2023, to avoid any unnecessary complications.
