ITR filing with new tax regime
When filing an income tax return (ITR) in India under the new tax regime, also known as the optional concessional tax regime, there are a few key points to consider. Here’s an overview:
Understand the ITR filing with new tax regime:
The new tax regime offers lower tax rates but eliminates most deductions and exemptions available under the old tax regime. Evaluate whether the new tax regime or the old tax regime is more beneficial for you based on your income, investments, and deductions.
For more information visit this site: https://www.incometax.gov.in
Choose the Appropriate ITR Form:
Select the relevant ITR form based on your income sources, residential status, and other criteria. As of my knowledge cutoff in September 2021, for individuals opting for the new tax regime, ITR-2 or ITR-3 forms may be applicable, depending on the specific income and business/professional requirements.
Calculate Total Income:
Determine your total income by considering all income sources, such as salary, business income, capital gains, house property income, and other income. Exclude any income that is exempt under the new tax regime.
Apply Appropriate Tax Slabs and Rates:
Calculate your tax liability based on the income tax slabs and rates applicable to the new tax regime. The new tax rates are different from those in the old tax regime, with lower rates at certain income levels. Refer to the latest income tax slabs and rates provided by the income tax department for the relevant assessment year.
Report Income and Tax Details:
Fill in the ITR form with accurate information regarding your income, deductions (if any), tax payments, and any other required details. Provide a breakup of income under various heads and provide information about any losses, if applicable.
Exclude Deductions and Exemptions:
Under the new tax regime, most deductions and exemptions available under the old regime are not applicable. Do not claim deductions such as HRA (House Rent Allowance), standard deduction, exemptions for LTA (Leave Travel Allowance), etc., while filing under the new tax regime.
File and Verify ITR:
Generate the XML file of the filled ITR form and upload it on the income tax department’s e-filing portal. Complete the verification process as required. Choose the appropriate verification method, such as electronic verification using Aadhaar OTP or sending a signed physical copy of the ITR-V to the CPC (Centralized Processing Centre). ITR filing with new tax regime
It’s important to note that tax laws and regulations may change, and it’s advisable to refer to the latest guidelines and consult a tax professional to ensure accurate filing and compliance with the new tax regime at the time of filing your ITR. ITR filing with new tax regime: