The government mandates that individuals who earn a specified amount of annual income must file income tax return (ITR) within a pre-determined due date. For the assessment year 2018-19 (financial year 2017-18), August 31, 2018 is the deadline for individuals to file income tax return. Income tax is levied on individual taxpayers on the basis of a slab system where different tax rates have been prescribed for different slabs. There are three categories of individual taxpayers- individuals (below the age of 60 years) which includes residents as well as non-residents, resident senior citizens (60 years and above but below 80 years of age) and resident super senior citizens (above 80 years of age).
In the general category (below 60 years),
1. Individual with annual income up to Rs. 2.5 lakh is not liable to pay income tax
1. Individual with annual income up to Rs. 2.5 lakh is not liable to pay income tax
2. Individual with an income between Rs. 2.5 lakh and Rs. 5 lakh, the five per cent slab is applicable - meaning income tax of 5 percent.
3. 20 per cent tax is applicable for individual with an income between Rs 5 lakh and Rs 10 lakh; and 30 per cent tax is applicable for or individual with an income above Rs 10 lakh.
As per the current income tax slabs, for senior citizens (aged 60 years or above but less than 80 years)
Income up to Rs 3 lakh is exempt from tax. For super senior citizens, aged 80 years and above, income up to Rs 5 lakh is exempt from tax.
Individuals looking to avoid paying any penalty charges on the income tax must pay the ITR by August 31, 2018. Filing the income tax return after the due date will invite penalties from the income tax department amount ranging from Rs 5,000 to Rs 10,000 depending on the degree of delay. Taxman should also note that changes to an ITR, once filed, can be made till March 2019 (for financial year 2017-18, and assessment year 2018-19) in case an individual make a mistake and wishes to make a correction.
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