Income Tax Return: According to the Income Tax Act of India, income tax is levied on income earned by all individuals, HUFs, partnership firms, LLPs and corporates.
In the case of individuals, the tax is not levied at a flat rate but as per the slab system. People have to file income tax return and pay applicable tax if their income exceeds the minimum limit.
Income tax return
In the old tax regime, the income tax slab for the common people has been divided into three categories. These include people below 60 years of age, people between 60 and 80 years of age and people above 80 years of age. However, there is nothing like this in the new tax regime. At the same time, people have to file income tax returns according to different tax slabs.
While tax slabs
file income tax returns according to the new and old tax regime, people have to file different taxes on different incomes. However, 5% tax is also paid according to the income of the people. The rate of 5 percent is the lowest tax rate in the income tax slab.
Old Tax Regime – New Tax Regime
If a person files income tax return according to the old tax regime and the age of that person is less than 60 years, then that person can get income from Rs. 2.5 lakh per annum to Rs. 5 lakh per annum. 5% tax will have to be paid. On the other hand, if a person files income tax return from the new tax slab and the income of that person is between Rs 3 lakh to Rs 6 lakh annually, then that person will have to pay 5% income tax.