There are salary taxpayers at the forefront of filing income tax returns. According to the rules of income tax, if a person doing the job is up to Rs 2.5 lakh annually, then he does not need to pay tax. This rule is for taxpayers using the Old Rizim of Income Tax. The Exgption Limit in the new regimen is Rs 4 lakh annually. This means that if the annual income of a person doing the job is up to Rs 4 lakh, then he does not need to pay tax.
How is which taxpayer will use which form?
According to the source of income in India, it is decided that taxpayers will use an ITR form to file returns. The jobs use the most ITR Form 1. This form is also called spontaneous form.
How many ITR forms of income tax are available?
ITR-1 is the easiest form of the 7 ITR forms of the Income Tax. If the total income of a person working is up to Rs 50 lakh or less, then he will have to use ITR-1 i.e. spontaneous form. For this, some conditions have been fixed by the Income Tax Department. The following are these conditions:
-The source of the incidence should be salary or pension. Even if a person works in two places, he will also use easy form.
-Winning a lottery or race horse should not have any kind of income.
-Long -term capital gains (from the sale of units of shares and mutual funds) should not exceed Rs 1.25 lakh in a financial year.
Form 16 is necessary to file returns
If any taxpayers fulfill these conditions, then they can use a comfortable form to file income tax returns. From this financial year, the Income Tax Depression has made the information of long term capital gain mandatory in the income tax form. Experts say that if you work, you will need Form 16 to file income tax returns. This form will be issued by the employer i.e. the company where you work. For employees, it is necessary to release Form 16 to all employees by June 15.
Employees are now issuing digital form 16.
Form 16 contains information about your salary, TDS and Didles. Digital Form 16 has become easier to file income tax retrimation. Taxpayers using ITR-1 will have to upload their digital form 16 tax filing on the website of the platform. Then, the platform itself will get information related to income ie salary from Form 16.