First understand when you will get the benefit

Many people are confused about the fact that this time while filing ITR, they will not have to pay tax on income up to Rs 12 lakh. Let us tell you that this is not the case at all. Under the new income tax system, tax exemption of income up to Rs 12 lakh is applicable from the financial year 2025-26, whereas the ITRs that will be filed now are for the financial year 2024-25.

Now know who will not get the benefit

If you invest money in the stock market or buy and sell property and earn some money from it, then you will not get the benefit of tax free income up to Rs 12 lakh on that income. In such a situation, the income from capital gains will not be counted in the calculation of taxable income.

Let’s understand with an example

Let’s assume that your total income in a year is Rs 12 lakh. Out of this, Rs 8 lakh is your salary income, but the remaining Rs 4 lakh is earned by you from capital gains. In such a situation, you will get tax benefit on Rs 8 lakh, but you will have to pay capital gains tax on Rs 4 lakh. So in this condition, your income of Rs 12 lakh will not be tax free.

What is capital gain?

A salaried person can earn capital gains in two ways. First is from the stock market and second is from buying and selling a house or land. If you sell a share in the stock market after keeping it with you for more than 1 year, then the income earned from it is called long term capital gain. Whereas if you sell it before 1 year, then it is called short term capital gain.

What is the rule in case of property

If we look at the case of house or land, the definition of short and long term is slightly different. If you sell the house or land after 2 years, then the profit you make will be called long term capital gain. On the other hand, if you sell it before 2 years, the profit you make will be called short term capital gain.

How much is capital gains tax?

Talking in the context of the stock market, you will have to pay 20 percent tax on short term capital gain. Earlier this tax was 15 percent. On the other hand, you will have to pay 12.5 percent tax on long term capital gain, which was 10 percent earlier. However, if you have a long term capital gain, then you will get tax exemption on a gain of up to Rs 1.25 lakh.

How will tax be levied on income from house or land

If you have made long term capital gains by selling a house or land, then its calculation will be slightly different. 12.5 percent tax will have to be paid on a house bought before July 23, 2024 without including the effect of inflation (indexation). At the same time, you will also have the option of paying 20 percent tax with indexation benefit under the old scheme. You can pay whichever of the two options results in less tax.

LTCG holders will get special benefit from this year

Have you also got long term capital gain up to Rs 1.25 lakh in the financial year 2024-25? If yes, then the Income Tax Department has given a special facility for you. Due to this, it will now be even easier for you to file ITR. Recently, ITR-1 form has been issued by the Income Tax Department, in which special measures have been taken regarding long term capital gain up to Rs 1.25 lakh.

There has been a big change in the ITR form

This year, a major change has been made in the ITR form. This change is that ITR-1 (Sahaj) can be filed to deposit long term capital gain (LTCG) under section 112A. However, the condition is that the LTCG should not exceed Rs 1.25 lakh and the taxpayer does not have any loss to carry forward or set off under the capital gain category.

This facility has been started this year

If you are in this category, then this time it has become easier for you to file income tax return. Let us tell you that earlier there was no provision for reporting capital gains tax in ITR-1 form. This special facility has been started from this year.

Those with short term capital gains will not get the benefit

ITR-1 form cannot be used by those taxpayers who have made short term capital gains from selling house property or from listed equity and equity mutual funds.

The post ITR Filing: You should know this rule, everyone’s income up to ₹ 12 lakh will not be tax free, heavy tax will be levied despite low income first appeared on Rightsofemployees.com.

According to these tax slabs, people have to pay tax on their income. On the other hand, after a few weeks, the budget is also going to be presented by the central government. Every year taxpayers expect that the government should give concession regarding income tax in the budget. However, now before the budget, it is very important for the tax payers to know one important thing. The Union Budget is presented through the Finance Minister.

Tax Actually, for the financial year 2021-22, tax is being collected by the government according to two slabs. There is a New Tax Regime and the other is the Old Tax Regime. The rate of tax charged on income in both the slabs is different. In such a situation, 20 percent income tax is also collected by the government on different incomes. Here we are going to tell you that on how much income 20% tax is charged in New Tax Regime and on how much tax is charged in Old Tax Regime.

20 percent tax 

Tell that if income tax is to be filed according to the New Tax Regime, then if there is an income of Rs 10 lakh to Rs 12.5 lakh annually, then 20 percent tax has to be paid on it. However, if income tax is to be filed according to the Old Tax Regime, then 20% tax will have to be paid on income from Rs 5 lakh per annum to Rs 10 lakh per annum.

The post Income Tax Slab: Big News! Heavy tax of 20% will have to be paid on this much income first appeared on Rightsofemployees.com.

According to these tax slabs, people have to pay tax on their income. On the other hand, after a few weeks, the budget is also going to be presented by the central government. Every year taxpayers expect that the government should give concession regarding income tax in the budget. However, now before the budget, it is very important for the tax payers to know one important thing. The Union Budget is presented through the Finance Minister.

Tax Actually, for the financial year 2021-22, tax is being collected by the government according to two slabs. There is a New Tax Regime and the other is the Old Tax Regime. The rate of tax charged on income in both the slabs is different. In such a situation, 20 percent income tax is also collected by the government on different incomes. Here we are going to tell you that on how much income 20% tax is charged in New Tax Regime and on how much tax is charged in Old Tax Regime.

20 percent tax 

Tell that if income tax is to be filed according to the New Tax Regime, then if there is an income of Rs 10 lakh to Rs 12.5 lakh annually, then 20 percent tax has to be paid on it. However, if income tax is to be filed according to the Old Tax Regime, then 20% tax will have to be paid on income from Rs 5 lakh per annum to Rs 10 lakh per annum.

The post Income Tax Slab: Big News! Heavy tax of 20% will have to be paid on this much income first appeared on Rightsofemployees.com.

Whose income is taxable, he has to pay tax on his income. At present, tax is collected from taxpayers according to Old Tax Regime and New Tax Regime. However, before the budget, people should keep one thing in mind.

Budget 2023

Before the budget, it should be known that people may have to pay up to 30 percent tax on income. As the income increases, the tax rate also increases. Different tax slabs are prescribed for different incomes in India, according to which tax is paid. The tax rate has also been fixed for the financial year 2020-21.

30 percent tax

Although 30 percent tax rate in India is paid on different income according to Old Tax Regime and New Tax Regime. If a person uses Old Tax Regime while paying income tax, then he will have to pay 30 percent tax on separate income and if he chooses New Tax Regime, then he will have to pay 30 percent tax according to different slabs.

Old Tax Regime

If someone chooses Old Tax Regime while paying income tax and his age is less than 60 years, then that taxpayer will have to pay 30% tax on income above Rs 10 lakh annually for FY 2020-21. In this slab, according to the age, senior citizens also get relaxation.

New Tax Regime

On the other hand, if a person is paying tax according to the New Tax Regime, then for FY 2020-21, those taxpayers will have to pay 30 percent tax on earning more than Rs 15 lakh. In this slab, the tax slab is the same for all age groups.

The post Income Tax Slab: Big News! Heavy tax of 30% will have to be paid on this much income, This thing is confirmed before the budget first appeared on Rightsofemployees.com.

According to these tax slabs, people have to pay tax on their income. On the other hand, after a few weeks, the budget is also going to be presented by the central government. Every year taxpayers expect that the government should give concession regarding income tax in the budget. However, now before the budget, it is very important for the tax payers to know one important thing. The Union Budget is presented through the Finance Minister.

Tax Actually, for the financial year 2021-22, tax is being collected by the government according to two slabs. There is a New Tax Regime and the other is the Old Tax Regime. The rate of tax charged on income in both the slabs is different. In such a situation, 20 percent income tax is also collected by the government on different incomes. Here we are going to tell you that on how much income 20% tax is charged in New Tax Regime and on how much tax is charged in Old Tax Regime.

20 percent tax 

Tell that if income tax is to be filed according to the New Tax Regime, then if there is an income of Rs 10 lakh to Rs 12.5 lakh annually, then 20 percent tax has to be paid on it. However, if income tax is to be filed according to the Old Tax Regime, then 20% tax will have to be paid on income from Rs 5 lakh per annum to Rs 10 lakh per annum.

The post Income Tax Slab: Big News! Heavy tax of 20% will have to be paid on this much income first appeared on Rightsofemployees.com.