Introduction:
Navigating tax regulations and financial planning can be daunting for salaried employees. This guide aims to simplify the complexities of the upcoming Financial Year 2023-24 (Assessment Year 2024-25), offering crucial insights into income tax filing, deductions, exemptions, and essential deadlines. Whether you're new to filing taxes or seeking to optimize your financial strategy, this concise yet comprehensive resource will help you make informed decisions.
Applicable Income Tax Return (ITR) Forms
| ITR Form | Eligibility | Not Eligible If |
|---|
| ITR-1 (SAHAJ) | Resident individuals, Total income ≤ ₹ 50 lakh, Income from Salary/Pension, One House Property, Other sources, Agricultural income ≤ 5,000 | Director in a company, Unlisted equity shares, Assets outside India, Income from outside India, Deferred tax on ESOP, Total income > ₹ 50 lakh |
| ITR-2 | Individuals and HUFs without income from Business/Profession | Eligible for ITR-1 |
| ITR-3 | Individuals and HUFs with income from Business/Profession | Eligible for ITR-1, ITR-2, ITR-4 |
| ITR-4 (SUGAM) | Resident Individuals, HUFs, Firms (not LLPs), Total income ≤ ₹ 50 lakh, Income from presumptive business/profession, Salary/Pension, One House Property, Other sources, Agricultural income ≤ 5,000 | Director in a company, Unlisted equity shares, Assets outside India, Income from outside India, Deferred tax on ESOP, Total income > ₹ 50 lakh |
Essential Forms for Salaried Individuals
| Form | Provided By | Details |
|---|
| Form 12BB | Employee to Employer | HRA, LTC, home loan interest, tax saving claims/deductions |
| Form 16 | Employer to Employee | TDS on Salary, income, deductions/exemptions, tax deducted |
| Form 16A | Deductor to Deductee | TDS certificate for income other than salary |
| Form 67 | Taxpayer | Income from outside India, Foreign Tax Credit |
| Form 26AS | Income Tax Department | TDS/TCS, advance tax, self-assessment tax, refunds |
| AIS (Annual Information Statement) | Income Tax Department | Comprehensive IT department information |
| Form 15G/15H | Resident taxpayer (not company/firm) / Senior citizen (60+ years) | Non-deduction of TDS on interest income |
| Form 10E | Employee to IT Department | Relief u/s 89(1) for salary in arrears/advance |
Tax Slabs for AY 2024-25
| Old Tax Regime | Rate |
|---|
| Up to ₹ 2,50,000 | Nil |
| ₹ 2,50,001 to ₹ 5,00,000 | 5% |
| ₹ 5,00,001 to ₹ 10,00,000 | 20% |
| Above ₹ 10,00,000 | 30% |
| Senior Citizens (60-80 years) | Rate |
|---|
| Up to ₹ 3,00,000 | Nil |
| ₹ 3,00,001 to ₹ 5,00,000 | 5% |
| ₹ 5,00,001 to ₹ 10,00,000 | 20% |
| Above ₹ 10,00,000 | 30% |
| Super Senior Citizens (80+ years) | Rate |
|---|
| Up to ₹ 5,00,000 | Nil |
| ₹ 5,00,001 to ₹ 10,00,000 | 20% |
| Above ₹ 10,00,000 | 30% |
New Tax Regime u/s 115BAC
| All Individuals | Rate |
|---|
| Up to ₹ 3,00,000 | Nil |
| ₹ 3,00,001 to ₹ 6,00,000 | 5% |
| ₹ 6,00,001 to ₹ 9,00,000 | 10% |
| ₹ 9,00,001 to ₹ 12,00,000 | 15% |
| ₹ 12,00,001 to ₹ 15,00,000 | 20% |
| Above ₹ 15,00,000 | 30% |
Surcharge
| Income Range | Rate (Old Regime) | Rate (New Regime) |
|---|
| Up to ₹ 50 lakh | Nil | Nil |
| ₹ 50 lakh to ₹ 1 crore | 10% | 10% |
| ₹ 1 crore to ₹ 2 crore | 15% | 15% |
| ₹ 2 crore to ₹ 5 crore | 25% | 25% |
| Above ₹ 5 crore | 37% | 25% |
Rebate u/s 87A
| Tax Regime | Rebate Condition |
|---|
| Old Regime | Up to ₹ 5,00,000 taxable income: Rebate of ₹ 12,500 |
| New Regime | Up to ₹ 7,00,000 taxable income: Rebate of ₹ 25,000 |
Important Deadlines
| Task | Date |
|---|
| Investment proof submission | April 30, 2023 |
| Form 16 issuance by employer | June 15, 2024 |
| ITR filing (non-audit cases) | July 31, 2024 |
| ITR filing (audit cases) | October 31, 2024 |
| ITR filing (revised) | December 31, 2024 |
Common Deductions/Exemptions
| Section | Deduction/Exemption | Limit |
|---|
| 80C | Investments in PPF, EPF, LIC, NSC, ELSS | Up to ₹ 1.5 lakh |
| 80D | Medical insurance premium | Up to ₹ 25,000 (₹ 50,000 for senior citizens) |
| 10(14) | HRA (House Rent Allowance) | Based on salary, rent, location |
| 24(b) | Home loan interest | Up to ₹ 2 lakh (self-occupied property) |
| 80G | Donations to specified funds/charitable institutions | 50% to 100% of donation amount |
| 80TTA | Interest on savings accounts | Up to ₹ 10,000 |
Ensure to review forms and eligibility before filing. Consult a tax professional for complex situations
