These include New Tax Regime and Old Tax Regime. While filing tax in both the tax systems, different tax slabs have been given, according to which tax has to be filed.

Income tax return

While presenting the Union Budget 2023, Finance Minister Nirmala Sitharaman had announced several changes in income tax. Under these changes, the tax regime was also changed. Along with this, the income tax slabs were also changed. While announcing the change in the new tax regime, the Modi government has kept zero tax up to Rs 3 lakh.

ITR

After this, people will have to pay 5% tax on income of Rs 3-6 lakh annually. On the other hand, if someone’s income is 6-9 lakh rupees, then these people will have to pay 10% income tax. If someone’s annual income is Rs 9-12 lakh, then these people will have to pay 15% tax. After this, those people whose income is 12-15 lakh rupees, then those people will have to pay tax of 20%. Apart from this, people whose income is more than Rs 15 lakh will have to file 30% tax.

Old tax regime

On the other hand, if we talk about the old tax regime, then individual taxpayers below the age of 60 years will not have to pay any tax up to Rs 2.5 lakh. After this, these people will have to pay 5% tax on annual income of Rs 2.5 to 5 lakh. At the same time, 20 percent tax will have to be paid on the annual income of Rs 5-10 lakh. On the other hand, those whose income is more than Rs 10 lakh annually, they will have to pay tax of 30 percent.

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However, there are some people who can file their ITR without paying the penalty even after the deadline for ITR filing is over. Let us know who are those people who can file ITR without paying the penalty.

As per the laws related to income tax, not everyone is required to pay late fee for filing ITR after the deadline is over. If a person whose gross total income does not exceed the basic exemption limit, then he will not have to pay penalty while filing ITR late. If the gross total income does not exceed the basic exemption limit, then no late fee is levied on ITR under section 234F.

what the law says

As per the current tax laws, the basic tax exemption limit applicable to an individual depends on the tax regime opted by him/her. If a person opts for the new tax regime, his basic exemption limit will be Rs 2.5 lakh, irrespective of age. However, if a person opts for the old tax regime, the basic exemption limit depends on the age of the individual. At present, the basic exemption limit for resident individual below 60 years of age is Rs 2.5 lakh. For senior citizens 60 years and above but below 80 years of age, income up to Rs 3 lakh is exempt from tax. The basic exemption limit for super senior citizens (above 80 years of age) is up to Rs 5 lakh.

Exceptions to the above rule

However, there are two exceptions to the rule mentioned above. The first exception to the rule requires filing of ITR for certain sections even if their gross total income does not exceed the basic exemption limit. If a person fulfills any of the conditions given in the seventh provision of section 139(1), then he will have to mandatorily file ITR for the financial year 2021-22. Failure to do so will attract charges under section 234F.

Persons covered under the seventh provision of section 139(1) –

• Persons who have deposited an amount or aggregate amount exceeding one crore rupees in one or more current accounts maintained with any banking company or co-operative bank, or
• who has spent for himself or any other person an amount or aggregate amount exceeding rupees two lakhs for travel to a foreign country, or
• Those who have spent an amount or total amount exceeding one lakh rupees for the consumption of electricity.

If you want to file ITR due to any of the above conditions, make sure you file your tax return before the deadline. Otherwise, you will have to pay a late fee, even if your gross total income is less than the taxable limit.

The post Income Tax Return: There is a penalty for late filing of ITR, but this penalty is not applicable on everyone, know what are the rules first appeared on Rightsofemployees.com.