ITR RETRUN

Income Tax Rules in India

The legislature enacted the Income Tax Act of 1961 to administer and govern income tax in the country. Still, the Income Tax Rules, 1962, were created to help in applying and enforcing the law constituted in the Act. Moreover, the Income Tax Rules can only be read with the Income Tax Act.

The Income Tax Rules are within the framework of the Income Tax Act and are not allowed to override its provisions.

What are the Different Types of Income?

In India, every individual, regardless of their residency status (whether a resident or non-resident), is obligated to pay income tax on their earned or received income. To facilitate a systematic classification, the Income Tax Department has delineated income into five distinct heads, each encompassing specific sources:

1. Property Income – This category includes income generated from renting a residential property. Individuals earning rental income are subject to taxation under this head.
2. Salary Income – Income derived from employment, including salaries and pensions, is classified under this head. Tax liabilities arise from earnings related to one’s employment.
3. Business or Professional Income – Self-employed individuals, freelancers, businesses, contractors, and professionals like life insurance agents, chartered accountants, doctors, lawyers, and tuition teachers with independent practices fall under this head. Profits generated from these endeavors are taxable.
4. Capital Gain Income – Surplus income generated from the sale of capital assets like stocks, mutual funds, or real estate is taxable under this type of income.
5. Income from Other Sources – Income earned as interest from savings bank account, fixed deposits, and lottery winning are considered as income from other sources.

Income Tax Return

Income Tax Return (ITR) is a form submitted by Individuals to Income Tax Department about his Income. Here is all you need to know about how to file ITR online. Before you file your taxes, you will need your Form 16, provided by your employer, and any proof of investment. You can compute the tax payable and any refunds for the year.

Once you have all the documents ready, you can start the Income tax return filing process.

For MSMEs and professionals, the next-generation common IT form has been introduced; if their cash receipts are less than 5%, presumptive tax limitations have been raised to Rs 3 crore (turnover) and Rs. 75 lakh (income).

E-Filing Income Tax

E-filing your return has apparent advantages like you won’t have to deal with the hassle of paperwork and waste time sorting through it all. You can log on to the secure website and e-file your return.

E-Filing Income Tax Returns, TDS returns, AIR returns, and Wealth Tax Returns can be completed online at https://incometaxindiaefiling.gov.in. 

This government website also has provisions for you to submit returns, view form 26AS, outstanding tax demand, CPC refund status, rectification status, ITR – V receipt status, online application tools for PAN and TAN, e-pay your tax and even has tax calculator.

Taxpayers and Income Tax Slab Rates

In the Union Budget 2025, the Finance Minister of India announced changes to the income tax slab for the new regime. However, the new income tax regime is optional, and individuals can opt for it or file their taxes as per the old regime.

Income Tax slab under New Regime for FY 2025-26

Note: New income tax rates are optional