After opening the account, you will have to deposit Rs 500 every year for the number of years your account remains closed. Also, Rs 500 or more will have to be deposited for the current financial year. Apart from this, you will have to pay Rs 50 for every year for which payment has lapsed.

It would be good to deposit money in it every year. If due to some reason the money is not deposited then you can deposit the money and get it started again. To reopen a closed PPF account, you will have to submit a written application.

If the minimum amount is not deposited, you get interest after the PPF account becomes inactive but it has many disadvantages. The first disadvantage is that you cannot take loan against PPF account. You have to pay a fine for restarting it.

If you are not able to deposit even Rs 500 annually, then your PPF account becomes inoperative. Apart from this, you can deposit a maximum of Rs 1.5 lakh in it in a financial year.

Both the annual interest and maturity amount received under investment in PPF are tax-free. But if you also invest in it, then it is important for you to follow some rules. As per the rules, you are required to invest at least Rs 500 every year.

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What is the rule

Taxpayers whose annual income is less than Rs 5 lakh do not have to pay tax as they get a deduction of Rs 12,500 under section 87A. It is not that their income does not come under the taxable limit. The tax exemption limit is only up to Rs 2.50 lakh.

What is zero return or NIL return?

Zero returns are those in which taxpayers do not have to pay any tax. This happens when the income of a taxpayer is less than the exemption limit. When a taxpayer’s income is less than Rs 2.50 lakh in a financial year, then he has no tax liability. Such people are not required to file tax returns as they do not fall in the tax bracket. If such people still file returns, whose income is less than Rs 2.50 lakh, then it is called NIL return. Let us tell you here that it is not mandatory to file zero return. However, there are many advantages of filing NIL or zero return.

What is the meaning of zero return

Zero return means that you are telling the tax department that your income is not taxable. Your income is less than Rs 2.50 lakh. Filing zero return means that you are not paying tax in that financial year.

Benefits of filing zero return

Loan is easily available

If you file ITR then you get loan easily. To take a loan, you have to give ITR of 3 years.

TDS refund becomes easy

If a taxpayer forgets to fill 15G or H, then his tax is deducted, then he can fill the return by filing ITR.

ITR will be required for Visa

Filing zero returns makes it easier for you to apply for visa applications and credit cards. It acts as proof of your income.

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At the same time, many changes have also been made regarding income tax from this financial year, the effect of which is going to be visible on the people. At the same time, a lot of relief has also been given by the government to the general public in the matter of tax.

Income Tax

At present, ITR has to be filed in the country according to the New Tax Regime and Old Tax Regime. There are different tax slabs in both the tax regimes. At the same time, a lot of tax relief was also provided to the people in the new tax regime. People are also going to get a lot of benefit from this. People have been given exemption from the government in tax filing.

Income tax exemption

In fact, while presenting Budget 2023, it was announced by Finance Minister Nirmala Sitharaman that if a person’s annual income is up to Rs 7 lakh, then he will not have to pay tax on filing income tax under the new tax regime, that is, his tax Will get discount. Also, under the new tax regime, now there will be zero tax on income up to Rs 3 lakh annually.

New tax regime

0 tax on income up to Rs 3 lakh per annum
5% tax on income up to Rs 3-6 lakh per annum
10% tax on income up to Rs 6-9 lakh per annum
15% tax on income up to Rs 9-12 lakh annually
20 tax on income up to Rs 12-15 lakh annually
30% tax on income above Rs 15 lakh per annum

Old tax regime

Apart from this, if a person files income tax return under the old tax regime, then no changes have been made there. People will have to pay zero tax on annual income of Rs 2.5 lakh. At the same time, people will get tax exemption up to an annual income of Rs 5 lakh.

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Those whose annual income is less than Rs 7 lakh can save tax on their entire income in this regime. But, if I tell you that this range is not 7, but 7.5 lakh rupees, then it will not be believed.

Actually, in the financial year 2023-24, after many years, the government has given direct exemption regarding Income Tax Slab. Although the new tax regime has been implemented two years ago, but in true sense its days are now over. In the budget, it has been announced to implement the new tax regime by default.

Till now the old tax regime was implemented by default. This means that now you do not tell your HR which regime to choose, then by default your income tax calculation will start with the new regime. If you want to pay tax from the old regime, you must first inform your employer.

Who will get 7 lakh tax exemption

In the budget, the Finance Minister had told that in the new tax regime, the direct exemption of income tax will be 7 lakh rupees. However, tax exemption will not be available on any kind of investment in this regime. That is, such job professionals who are not able to make any investment, now they will not have to pay tax on income up to Rs 7 lakh. But, in the new regime also, the total rules of income tax exemption apply, which give you a chance to avail tax exemption even after the scope of 7 lakhs.

How to save 50 thousand more In order to increase the scope of tax exemption to more than 7 lakhs in the new regime, you will have to claim Standard Deduction. Under the Income Tax Act, every salaried person is given a rebate of Rs 50 thousand in the name of standard deduction. But, its benefit is available only to the working people. So, if you are opting for the new tax regime this year, do not forget to claim standard deduction while filing the next ITR.

Earning is more than this, so if someone’s annual income is more than Rs 7.5 lakh and is adopting the option of savings, then he should stay away from the new tax regime. Actually, in the old regime, tax exemption is given only up to 5 lakhs. Tax has to be saved in the form of investment on income more than this.

Those who are not able to invest in rising inflation, they should adopt the new regime. In this, even after taking tax exemption of 7.5 lakhs, if your income is more, then the tax rate will be less on it. Apart from this, tax up to 3 lakh has been kept nil in the new regime, due to which you will be able to save several thousand in the form of tax.

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Actually, SBI, which is counted among the big banks of the country, is now giving people a chance to earn bumper, which you can take advantage of comfortably. You must be thinking that what is this work, then you do not even need much effort in this.

The country’s largest and government bank is now giving ATM franchise across the country, for which you can apply. If you get the franchise of SBI ATM, then there will be an income of Rs 60,000 every month, for which some important things have to be taken care of.

Know the important things

Some important things have to be taken care of in order to get the franchisee of India’s government and big bank SBI ATM. For this, you must have 80 to 100 square feet of vacant land on the roadside. Not only this, you also need an electricity connection here. Then it is necessary to have 24-hour power supply with the linter being built. After this you can apply for the franchise of ATM.

you must have this paper

To install SBI ATM in your vacant land, you must have some documents. For this, first of all, you must have Aadhaar card, PAN card, receipt of electricity connection, proof of land, residence certificate, birth certificate and photo copy of bank account. You have to apply by visiting the official site with these papers.

If you get the franchise of SBI ATM, then every month there will be an income of Rs 60,000 per month, which is necessary for you. Not only this, your annual income will be Rs 7 lakh 20 thousand.

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Along with this, middle class people are also expected to get tax exemption in this budget. However, before the budget, we are going to tell you under which slab at present income tax is paid.

Income Tax At present, income tax is paid in India under two tax systems. The name of one is Old Tax Regime and the name of the other is New Tax Regime. In both these systems, tax is collected according to different slabs. If we talk about the financial year 2022-23, then in this financial year, 5% to 30% tax is collected on different incomes. At the same time, there is an important thing about 10 percent tax which people should know.

Income Tax Slab Actually, if a person files tax according to New Tax Regime and his income is between Rs 5 lakh to Rs 7.5 lakh annually, then he will have to pay 10% tax but this is not the case in Old Tax Regime. Actually, there is no provision of 10% tax in the old tax regime.

If a person files tax according to Old Tax Regime, then there is no 10 percent tax slab in it. In the financial year 2022-23, if an individual whose age is less than 60 years files tax, then he will have to pay 5% tax on annual income between Rs 2.5 lakh to Rs 5 lakh. At the same time, he will have to pay 20% tax on income between Rs 5 lakh and Rs 10 lakh annually.

The post Income Tax: Big information! Only 10% tax will be applicable on this much income, know the update before the budget first appeared on Rightsofemployees.com.

The business class including the employed, farmers have various expectations from this budget. From the Ministry of Finance, from the first budget of independent India till now, tax payers have been given various facilities as well as tax slabs have been changed from time to time. New tax regime and old regime have been started by the Modi government for the tax payers.

Income tax exemption for annual income up to 2.5 lakh

. There is also a big difference in the tax slabs of both the regimes. According to a figure, most of the tax payers choose the old regime only. In both the regimes, annual income up to Rs 2.5 lakh is exempted from income tax. But there is a tax of 5 percent on income from 2.5 lakh to 5 lakh. In the old regime, 20 percent tax has to be paid on income between Rs 5 lakh to Rs 10 lakh annually. An annual income of 10 to 15 lakhs or more is taxed at 30 percent.

Let’s talk today if your annual income is Rs 10 lakh and you live on rent. Apart from this, if you invest the entire Rs 1.5 lakh under Section 80C of Income Tax, then today we calculate your tax.

Here is the complete math

1. If your annual income is Rs 10 lakh, then after reducing the standard deduction of Rs 50,000 given by the Ministry of Finance, your taxable income reduced to Rs 9.50 lakh.
2. After this it is considered that you have saved up to Rs 1.5 lakh under Section 80C of Income Tax. In this you can claim Tuition Fee, LIC (LIC), PPF (PPF), Mutual Fund (ELSS) and EPF (EPF) etc. In this way your taxable income has come down to Rs.8 lakh.
3. On House Rent Allowance (HRA) up to one lakh rupees, you do not need to give the PAN card of the landlord. If you pay this much rent, then your taxable income comes down to Rs 7 lakh. You will have to pay tax on this amount.
4. Rs 12,500 was taxed at the rate of 5 per cent on income between Rs 2.5 lakh to Rs 5 lakh. After this, 40 thousand tax was done on the income of 5 to 7 lakhs at the rate of 20 percent. In this way, from 2.5 lakh to 5 lakh, the total tax was Rs 52,500.
5. Now on this you will have to pay cess at the rate of 4 percent, which is Rs.2,100. In this way, your total income tax on salary of 10 lakhs is Rs 54,600.

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According to a media report , Aditya Shetty, CEO, BankBazaar.com, says that the tax savings from funds invested in tax saving FDs will vary depending on the tax bracket. A person in the 30% income tax net can claim a tax deduction of Rs 46,800. Similarly, if a person paying 20% ​​income tax invests Rs 150,000 in a tax saving FD, then he can save Rs 31,200 in tax annually. Good interest is also available in tax saving FD. Let us know how much interest the major banks are paying.

Which bank is paying how much interest

IndusInd Bank: IndusInd Bank is currently paying interest at the rate of 6.75 per cent per annum on tax saving FDs. Yes Bank is also paying only 6.75 percent interest on tax saving FD.

DCB Bank: Private sector bank DCB is also giving good returns on tax saving FDs. At present, the bank is giving interest at the rate of 6.60 percent on this FD.

RBL Bank: RBL Bank is offering 6.55 percent interest to customers on Tax Saving FD. Similarly, if you make a tax saving FD in IDFC First Bank, then you will get 6.50 percent interest.

Indian Overseas Bank: Indian Overseas Bank of the public sector is paying an annual interest rate of 5.85 percent to the customers on tax saving FD.

Canara Bank: Canara Bank is giving interest at the rate of 5.75 percent to its customers on Tax Saving FD. Punjab National Bank is also offering 5.75 percent interest on tax saving FDs.

Union Bank: If you make a tax saving fixed deposit in Union Bank, a leading public sector bank, then you will get interest at the rate of 5.75 percent only. Similarly, State Bank of India is offering 5.65 percent interest on tax saving FDs to its customers.

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Apart from this, the total income tax refund of Rs 1.14 lakh crore was done by the department. ITR being filed with penalty after July 31, this time the last date for filing income tax was 31 July. Till this date not many people have been able to file ITR. Those filing income tax returns after July 31 have to pay a penalty. But hardly you know that in some cases ITR can be filed even after the last date without penalty.

Depends on the Tax Regime Select Doesn’t matter. If you understand in simple language, if a person with an income of up to 2.5 lakhs files income tax return after the due date, then he will not have to pay penalty. However, it also depends on which tax regime you have selected?

Exemption on age and annual income

If one selects the old tax regime, then for those below 60 years of age, this exemption is Rs 2.5 lakh. At the same time, income up to Rs 3 lakh for those who are 60 years or more and less than 80 years is tax free. Similarly, the basic exemption limit for those above 80 years of age is 5 lakhs.

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ITR will be filed without penalty!

Meanwhile, it is being claimed in all the news that if you do not file ITR by July 31, then after that you will have to pay a penalty. But let us tell you that in some cases ITR can be filed even after the last date without penalty. Let us know the rules related to this.

Income

tax experts say that under section 234F of income tax, the total income of a person during the financial year does not exceed the basic exemption limit, then there is a reason to file ITR late. that does not matter.

Understand in simple

language, if you understand in simple language, then any person with income up to 2.5 lakhs, if he files income tax after July 31, then he will not have to pay any kind of penalty. However, it depends on the tax regime selected by you. The exemption limit for opting for the new tax regime is Rs 2.5 lakh, irrespective of his age.

Exemption on age and annual income

Similarly, if one selects the old tax regime, then for those below 60 years of age, this exemption is Rs 2.5 lakh. At the same time, income up to Rs 3 lakh for those who are 60 years or more and less than 80 years is tax free. Similarly, the basic exemption limit for those above 80 years of age is 5 lakhs.

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So, at this time most of the salaried class people must be busy scanning their income and expenditure for the previous financial year and assessment year. However, the taxpayer should be aware that different ITR forms are applicable for individuals earning different types of income.

The easiest form among the various ITRs issued by the Income Tax Department is ITR-1. At times, ITR-1 is filed as a standard ITR form by taxpayers without understanding the exact eligibility to file the correct ITR form. Therefore, it is important for taxpayers to know under what circumstances the ITR-1 form cannot be filed.

Who can use ITR-1 form for ITR filing?

Income tax experts say that ITR-1 is a simple tax return form, which can be filed by a resident taxpayer whose total income does not exceed Rs 50 lakh. Income from sources like salary, income from other sources and only one house property is reported. It needs to be noted here that the return cannot be used by a director of a company or ESOP of a startup or tax deferred for a person having agricultural income. 5000 or has capital gains income.

Let us know when an earning person cannot use ITR-1 form while filing ITR for FY 2021-22 or Assessment Year 2022-23:

Annual income above 50 lakhs
If the earning person is a salaried person and has no other income, but the total annual income is more than 50 lakhs, then ITR-2 is the correct form for such taxpayer.

Income from more than one house property
If one has a house property, then the correct ITR form is ITR-1. But if there are more than one house properties, then one cannot file ITR-1.

income from agriculture
We all know that income from agriculture is not taxable. While filing income tax return, one needs to report income from agriculture above Rs 5000. Though agricultural income is not taxable, it is only required to determine the slab rate for taxation. And in such cases ITR-1 cannot be filed.

Equity investment in an unlisted company
If a salaried taxpayer owns equity in an unlisted company, then in such a case, the earning person is not allowed to file ITR using Form ITR-1.

being a director of the company

If the taxpayer is a director in a company, then in such a case, he cannot use the ITR-1 form.

Excess TDS Payment

If TDS is deducted on withdrawal of money in any bank/post office account in excess of the limit of 1 crore prescribed under section 194N, then an earning person cannot use ITR-1 form.

stock mutual fund investors

If the taxpayer is a salaried individual and is investing in shares or mutual funds, one can file ITR-1. But once these shares are sold or the mutual fund is redeemed, one cannot file ITR-1. The correct form for such income is ITR-2 or ITR-3.

HUF family member

If a taxpayer belongs to Hindu Undivided Family (HUF), then he cannot use ITR-1 form for filing ITR.

property outside India

If an earning person fulfills all the criteria of ITR-1 but has assets outside India, then the taxpayer cannot file ITR-1.

Income from freelancing

Many software professionals do some work as freelancers on weekends or in their spare time. Income from freelancing is income from business or profession. In such a situation, no one can file ITR-1. Such people need to file ITR-4 or ITR-3, as the case may be.

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