E Filing Income Tax | Income Tax Filing
E filing income tax - e filing income tax is simply demonstrated online filing of income tax. Let’s understand it from scratch, what is income tax, income tax is basically a tax imposed on a person or entity regarding income or profits earned.
Generally, income tax is computed as a product of tax rate times taxable income. It is basically levied by the government of India on the income of every individual as per the provisions of the Income-tax Act, 1961.
If we try to understand the administrative framework of income tax, they can be easily understood through -
The government of India’s revenue functions is managed by the Ministry of Finance, thus, the Finance Ministers are entrusted with the responsibility of administration of direct taxes like Income-tax, Wealth tax, etc., to the CBDT, which stands for Central Board of Direct Taxes. The CBDT is a part of the Department of Revenue in the Ministry of Finance, which provides crucial inputs for planning and framing the policy with respect to direct taxes including the administration of direct tax laws through the Income-tax Department.
Moreover, this can be concluded that the Income Tax department administers the income tax laws under the control and supervision of CBDT.
Since, it is clear, what is e filing income tax and the administrative framework of income tax, let’s move on to what is the period for which an individual’s income is taken into account for the purpose of Income tax.
What is the Period For Which an Individual’s Income is Taken into Account For the Purpose of Income Tax?
As you must know, a person has to pay income tax annually, and as per Income-tax Law, a year is defined as the duration from 1st April and ending on 31st March of the next calendar year. Moreover, the income tax categorized years into two -
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- Previous year
- Assessment year
To define these, the earlier one is defined as the duration in which the income is earned and the latter one means the year in which tax will be charged on your income. Let’s understand it through an example -
Say, a person who earns an income in the year 1st April 2021 to 31st March 2022, will be considered the previous year’s income, i.e., 2021-22. Thus, the income earned in the year 2021 to 2022 will be taxed next year (that is assessment year 2022-23).
In the next section, let’s know who needs to complete income tax filing.
Who Needs to Complete Income Tax Filing | Who Needs to File Income Tax E Filing?
Typically, every individual needs to file income tax, as per Income-tax Act under section 2(3), a “person” covers its ambient natural and artificial persons. Moreover, for the purpose of levying the tax, a person is -
- Individual
- Hindu Undivided Families [HUFs]
- Association of Persons [AOPs]
- Body of individuals [BOIs]
- Firms
- LLPs
- Companies
- Local authority
- And any artificial juridical person not covered under any of the above.
The above-mentioned definition of “person” in accordance with the Income-tax Act clarifies that a person can be an individual and any sort of artificial entity will also be liable for Income tax filing.
Now, let’s move to applicable income tax rates, in the next section.
What Are the Applicable Income Tax Rates For Income Tax Filing | Applicable Rates to File Income Tax E Filing
To file income tax, one can seamlessly complete income tax filing under two categories -
- Regime 1 or Old Tax Slab
- Regine 2 or New Tax Slab
Let’s understand these in detail -
1. Regime 1 or Old Tax Slab
Under regime 1 or old tax slab applicable tax rates are -
| Income (in lakh) | Applicable income tax (in percentage) |
|---|---|
| 2.5 - 5 | 5% |
| 5 - 10 | 20% |
| Above 10 | 30% |
Even though the new tax slab has been introduced, most people prefer the Old tax slab, since it provides you a treatment of Rs 12,000. Moreover, the tax abatement increases if you are above 60, which is 3 lakh, and 5 lakh if you are above 80.
2. Regime 2 or New Tax Slab
Under regime 2 or the new tax slab, no exemptions are provided, and the applicable income tax rates are -
| Income (in lakh) | Applicable income tax (in percentage) |
|---|---|
| - 5 | 5% |
| 5 - 7.5 | 7.5% |
| 7.5 - 15 | 15% |
| 10 - 12 | 20% |
| 12 - 15 | 25% |
| Above 15 | 30% |
How to File Income tax | Process of E Filing Income Tax | Procedure of E Filing of Income Tax
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- Visit the official website of the Income-tax.
- Click on, “auto-calculate the income tax.”
- As your income will be automatically calculated, click on, “pay tax online.”
- Provide your challan and BSR code details.
- Once done, pay the concerned amount.
How Will JR Compliance Help in Income Tax Filing?
- Our experts will provide you with complete assistance in filing any form of income tax filing.
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- Be it filing of regime 1 and regime 2, we have got you covered.
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Conclusion
E filing of income tax or e filing income tax seems to be an easy affair, it might be, however, it might get complicated if you lack knowledge or have inaccurate knowledge regarding - how to file Income Tax. Typically, an individual faces consequences due to turnover variation or if an Aadhar card is not linked to PAN, and more.
On a positive note, these can be easily ignored, if you are aware of - How to file income tax return online step by step. Get in touch with us to file ITR, GST return, MSME return, ROC return, and to meet compliance requirements of BIS certificate, WPC certificate, EPR authorization, and more.
