Income Tax Filing: In India, individuals are required to pay taxes on their income, which is done through the income tax return filing process. Through this process, individuals also disclose their income to the tax authorities.
It is important to note that individuals fall under different income tax brackets based on their earnings. However, it is now necessary to be aware that a 30% income tax rate will be applicable to specific individuals. The deadline for filing income tax returns to report income earned during the financial year 2022-23 is 31st July 2023.
Income Tax Return
In India, there are two ways to file your income tax return. One is called the New Tax Regime, and the other is the Old Tax Regime. These two systems have different tax slabs and benefits for taxpayers. In both regimes, the maximum tax rate is 30%. However, if someone files their tax return after the due date, they may be charged a penalty.
New Tax Regime
Let’s talk about the New Tax Regime introduced in the Budget 2023 by Finance Minister Nirmala Sitharaman. Under this regime, if you choose to file your taxes according to the new rules in the financial year 2023-24, the maximum tax rate you may have to pay is 30%. If your annual income is more than Rs. 15 lakh, then you will be required to pay 30% income tax under this regime.
Old Tax Regime
Now, let’s discuss the Old Tax Regime. If you choose to file your income tax return under the old rules in the financial year 2023-24, the maximum tax rate you may have to pay is also 30%. If your income exceeds Rs. 10 lakh, you will be liable to pay a 30% tax.