Introduction
Paying income tax is the duty of every Indian citizen, but many people still do not understand the important tax provision properly. The result? Either the annuities pay more tax or face penalties. If you get the basic rules clear, tax planning becomes easier and you are able to make the best use of your hard-earned money.
Let's see 5 important income tax provisions that every Indian taxpayer should know.
1. Basic Exemption Limit
The first and most important rule is the Basic Exemption Limit. This means that if your annual income is up to a fixed limit, then you do not have to pay tax.
- Income up to Rs 3,00,000 in the new tax regime for FY 2024-25 (2025-26) will not be taxed.
- Senior citizens (60-80 years) aur super senior citizens (80+ years) ke liye alag exemption limits hoti hain Old Regime me.
If you keep your income slabs in mind, you will be able to do smart tax planning.
2. Section 80C - Sabse Popular Tax Saving Tool
Section 80C is a must-know for every salaried and self-employed person. In this, you can claim a maximum deduction of up to Rs 1.5 lakh.
This includes:
- Life Insurance Premium
- PF (Provident Fund), PPF (Public Provident Fund)
- ELSS (Tax Saving Mutual Funds)
- NSC (National Savings Certificate)
- Home Loan ka principal repayment
- Children's School/College Fees
If you plan wisely, 80C significantly reduces your tax liability.
3. Capital Gains Tax
Have you ever sold shares, property or mutual funds? So the profit that he makes is called capital gains, and it is taxed.
- Short-Term Capital Gain (STCG): Agar aapne asset short time me becha (shares - <12 months, property - <24/36 months), toh normal slab rates ya 15% lagega (shares ke case me).
- Long-Term Capital Gain (LTCG): Agar aapne asset lambe time baad becha, toh shares/mutual funds me Rs 1 lakh tak tax-free hai, uske baad 10% lagega.
This means that when you sell assets, your tax planning has a significant impact.
4. TDS (Tax Deducted at Source)
Income Tax department directly aapki income ka ek part deduct kar leta hai through TDS.
Example:
- Salary me employer TDS deduct karta hai.
- Bank aapke FD interest par TDS deduct karta hai agar wo threshold cross kare.
- Rent, contractor payments etc. par bhi TDS lagta hai.
Aapko apna Form 26AS aur AIS (Annual Information Statement) regularly check karna chahiye taaki TDS aur actual income match kare.
5. Penalties for Late or Wrong Filing
If you do not file your ITR on time or give incorrect details, there are penalties:
- Late filing fee of Rs 5,000 under Section 234F.
- Interest charges under Sections 234A/B/C.
- The IT department can also impose scrutiny and extra penalty on wrong filing.
Simple solution - apna ITR time par file karo aur accurate details do.
FAQ - Income Tax Provisions in India
1. What is the Basic Exemption Limit for 2024-25?
Income up to Rs 3,00,000 in the new tax regime is not taxable.
2. What is the exemption limit for senior citizens?
In the Old Regime, up to Rs 3,00,000 for Senior Citizens (60-80 years) and Rs 5,00,000 for Super Senior Citizens (80+ years) are tax-free.
3. Can you choose both the new and old tax regimes?
However, taxpayers can select the regime according to their choice in every financial year.
4. What is the maximum deduction in Section 80C?
You can claim a deduction of up to a maximum of Rs 1.5 lakh.
5. What investments are allowed under Section 80C?
PPF, PF, Life Insurance Premium, Elles Mutual Funds, Home Loan Principal, NSC, and Tuition Fees.
6. How is capital gains tax levied?
Short-term and long-term tax on holding assets are levied at different rates.
7. How is capital gains tax on the sale of shares?
15% on short-term (less than 12 months) and long-term (Rs 1 lakh on 12 months+, 10% thereafter).
8. How much tax is levied on selling property?
If the property is sold within 24/36 months, then tax will be levied at the STCG slab rate, if sold after that, then tax will be levied from the 20% with index.
9. What is TDS?
TDS stands for Tax Deducted at Source - which is directly deducted and deposited by the employer, bank or payer.
10. How to check TDS slips or details?
You can check Form 26AS and AS (Annual Information Statement) on the Income Tax Portal. 11. What if TDS is over deducted? You can claim refund of access TDS by filing ITR.
12. What is the penalty for late filing of ITR?
Under Section 234F, there is a maximum penalty of Rs 5,000 (Rs 1,000 if the income is less than Rs 5 lakh).
13. Is filing ITR compulsory if the income is low?
If your income is below the threshold then it is not compulsory, but it is useful to file ITR for future needs (loan, visa ATC).
14. Who has to pay advance tax?
If your total tax liability is more than Rs 10,000, then you have to pay advance tax installments.
15. What is Section 80D?
Provision for claiming deduction on health insurance premium. Tucks of Rs 25,000 for Individuals and Rs 50,000 for Senior Citizens.
16. How is House Rent Allowance (Green) tax-free?
If you live on rent and get green in salary, then you can claim exemption under the condition of condition.
17. Are the rules the same for female taxpayers?
The basic exemption limit and slabs are the same, but some deductions and exclusions are different for Narees.
18. Is agricultural income taxed?
Agricultural income is generally exempt, but slab calculation is the aggregation rule.
19. Are there benefits of 80C and 80D in the new tax regime?
No, the New Tax Regime Me Most Deduction (80C, 80D, Green ATC.) is not available.
20. When is the last date for filing ITR?
Normally 31st July (for non-audit cases). But sometimes the government also extends.
Conclusion
You see, these 5 provisions - Basic Exemption Limit, Section 80C, Capital Gains Tax, TDS Rules and Penalties - are a must know for every Indian taxpayer. By understanding them, you can plan your tax properly, save money and maintain legal compliance.
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