Everything You Need to Know About Income Tax in India
Understanding income tax doesn't have to be complicated. Learn about tax slabs, deductions, exemptions, and smart strategies to legally minimize your tax burden.
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Understanding Income Tax in India
Income tax in India is governed by the Income Tax Act, 1961 and administered by the Central Board of Direct Taxes (CBDT). It's a progressive tax where higher income attracts higher tax rates. The tax year runs from April 1 to March 31, and returns must be filed by July 31 of the following year.
With the introduction of the new tax regime in 2020, taxpayers now have a choice between the old regime (with deductions) and new regime (lower rates, fewer deductions). Understanding both helps you make an informed decision for maximum tax savings.
Income Tax Slabs (FY 2024-25)
| Income Slab | Old Regime | New Regime |
|---|---|---|
| Up to ₹3,00,000 | Nil | Nil |
| ₹3,00,001 - ₹5,00,000 | 5% | 5% |
| ₹5,00,001 - ₹7,00,000 | 20% | 10% |
| ₹7,00,001 - ₹10,00,000 | 20% | 15% |
| ₹10,00,001 - ₹12,00,000 | 30% | 20% |
| ₹12,00,001 - ₹15,00,000 | 30% | 25% |
| Above ₹15,00,000 | 30% | 30% |
Key Tax Deductions
PPF, ELSS, NSC, Life Insurance, EPF, Tax-saving FD, Children's tuition fees
Health insurance premium for self, family, and parents
NPS (National Pension System) contribution
Interest on education loan (for 8 years)
Interest on home loan for affordable housing
Interest on savings account
Income Tax Return (ITR) Filing
- Form 16 from employer
- Bank statements
- Investment proofs (80C, 80D)
- Form 26AS (tax credit statement)
- Aadhaar and PAN
- Capital gains statements
- Property documents (if applicable)
- Form 16 issued byJune 15
- ITR due date (Individuals)July 31
- Advance tax installmentsJun/Sep/Dec/Mar
- Belated ITR deadlineDecember 31
Avoid These Tax Mistakes
- • Not filing ITR even when below taxable limit
- • Missing the July 31 deadline
- • Not verifying ITR within 30 days
- • Wrong regime selection
- • Not declaring all income sources
- • Claiming invalid deductions
Frequently Asked Questions
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