ITR forms are being filled out all the time. ITR has been filled out by more than a billion people. You can also file an ITR by July 31 for the fiscal year 2022–2023. If you miss the deadline for filing your ITR, you could be fined.
This time, it’s also important to know that some people will get an extra relief of Rs 2.5 lakh when they file ITR.
Tax level starts from 2.5 lakhs
Under the old tax system, if you were under 60 years old and made more than Rs 2.5 lakh a year, you usually had to pay tax. That is, if you make more than Rs 2.5 lakh per year, you have to pay income tax.
The Ministry of Finance says that tax is taken out of yearly incomes between Rs 2.5 lakh and Rs 5 lakh at a rate of 5%. During his budget speech, the Finance Minister told the public about this.
Extra tax break of 50,000 rupees
Even if you are over 60 but under 80, you can still get a tax break if you make more than 3 lakhs per year. People of this age can earn up to 3 lakhs before they have to pay income tax.
That is, if your income is more than 3 lakhs, you will have to pay tax. Under the old tax system, people this age get an extra Rs 50,000 tax break from the government.
These people got an extra deal of Rs. 2.5 lakh
Some people were also kept in the Very Senior Citizen group. People who are over 80 years old are in this group. People who are 80 or older and paying taxes have also been given an extra tax break.
People in this age range only have to pay taxes if they make more than 5 lakh rupees a year. This is why, compared to regular workers, these people get an extra Rs 2.5 lakh in tax breaks.
Aside from this, if you have an annual income of Rs 10 lakh and are exempt from paying tax on up to Rs 5 lakh, you won’t have to pay any tax on the leftover Rs 5 lakh. Even though your taxable income is Rs 2.5 lakhs, you don’t have to pay any tax because Rs 12,500 of it is free.