Find Out Important Exemption Limits & ITR Filing Tax Slabs

November 30, 2020, is the last date of filing the income tax returns for FY 19-20 (AY20-21). To the Income Tax Department, the taxpayers describe the particulars of the obtained income and the other tax returns on it in a fiscal year through the means of ITR.

According to the laws and rules, the particular taxpayer and residents along with non-residents are divided into 3 categories: those below 60 years of age, senior citizens (60-80 years) and super senior citizens (above 80 years)

An individual whose income is more than Rs 2.5 lakh or more possesses compulsory to return ITR. There is a limit of Rs 3 lakh For senior citizens (people between 60 years and 80 years of age), and a limit is Rs 5 lakh for many senior citizens (aged above 80 years).

There are different income tax rates slabs for every type of taxpayer. As of now, there are 2 tax schemes on the tax platform. From the Fiscal year 2020-21 the after the announcement of budget 2020 a new tax scheme providing assessee with a choice to pay the taxes. The latest tax policy becomes optional and proceeds to co-exist with the traditional ones.

Below are the income tax slabs for the new tax scheme

Income tax slab	Tax rates
Up to Rs 2.5 lakh	NIL
Rs 2.5 lakh to Rs 5 lakh	5% tax rebate of Rs 12,500 available under section 87A
Rs 5 lakh to Rs 7.5 lakh	10%
Rs 7 lakh to Rs 10 lakh	15%
Rs 10 lakh to Rs 12.5 lakh	20%
Rs 12.5 lakh to Rs 15 lakh	25%
Rs 15 lakh and above	30%

According to the old tax scheme if the total income of a person does not exceed Rs 2.5 lakh then the tax rate will not be imposed. But if income is between Rs 2.5 lakh-Rs 5 lakh, then 5% income tax is liable. Under Section 87A of the Income Tax Act,1961 whose income is Rs, 5 lakh can claim compensation of Rs 12,500.

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