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INCOME TAX - LATEST UPDATES, BASICS, TAX SLABS, INCOME TAX DEPARTMENT & LAWS - INCOME TAX GUIDE 2022-23
Income Tax e-Filing

Last Date To File ITR Income Tax - Latest What’s New in Income …

Browse By Topics

Updates, Basics, Tax Slabs,

For 2022-23
What is Income Tax?
Income Tax Slabs FY
Who should pay Inco…

Income Tax Department &

2023-24
Types of Income – Wh…
Which Is Better: Old
vs New Tax Regime
For Salaried Laws - Income Tax Guide Taxpayers and Tax Sla…

What is the Existing / …

Employees?

House Property
2022-23 Income Tax Slabs Und…

Exceptions to the Inco…

Business, Professional Updated on: Jun 28th, 2023 | 63 min read Financial year
& Freelance
Assessment year
Switch Language
Efiling Income Tax
Return

Income Tax Refunds

Paying Tax Due

Salary Income
What is Income Tax? Income tax is a type of direct tax the
Capital Gains Income
central government charges on the income earned during a
Other income sources
financial year by the individuals and businesses. It is
Advance Tax
calculated based on the tax slabs defined by Income Tax
NRI
Department.
HUF
Income Tax Notices
What’s New in Income Tax
POPULAR ARTICLES Budget 2023 Updates

Budget 2023
Highlights: PDF
A tax rebate has been introduced in the New Tax
Download, Key
Regime on income upto Rs 7 Lakhs. This implies that you
Takeaways,
Important Points do not have to pay tax if your taxable income is below 7
Budget 2023 lakhs under new tax regime.
Expectations For
Income Tax: 80C & The new tax slabs under the new tax regime will be:
80D Limit Increase,
Tax Slab Changes For
Salaried Employees

Budget 2022
Income Slabs Tax Rates
Highlights: PDF
Download, Key
Takeaways,
up to Rs 3 lakh Nil
Important Points

Rs 3 lakh- Rs 6 lakh 5%
RELATED ARTICLES
Rs 6 lakh-Rs 9 lakh 10%
Budget 2022
Highlights: PDF
Download, Key Rs 9 lakh-Rs 12 lakh 15%
Takeaways,
Important Points
Rs 12 lakh- Rs 15 lakh 20%
Budget 2023
Highlights: PDF
Download, Key Above Rs 15 lakh 30%
Takeaways,
Important Points

Budget 2023: Full List

of Cheaper and The standard deduction of Rs 50,000 has been
Costlier Items
introduced under the new tax regime for salaried
How to file ITR Online
– Step by Step Guide
taxpayers.
to Efile Income Tax
Return, FY 2021-22 (AY The highest surcharge under the new tax regime has
2022-23)
been reduced to 25% from 37% for people earning more
Which ITR Should I
than Rs 5 crore. This move brings down their tax rate
File? Types of ITR
Forms for FY 2021-22, from 42.74% to 39%.
AY 2022-23 – All ITR
Forms
The new IT regime will be the default tax regime.
UAN Login, Portal
However, taxpayers can choose the old regime.
Registration, Universal
Account Number
Activation & Status Leave encashment for non-government employees has
Check
Income Tax Raid, been increased to Rs 25 lakh from Rs 3 lakh.
Search and Seizure –
What, When, How
TDS rate reduced to 20% from 30% on withdrawal of EPF.
ITR U – What is ITR-U
Form and How to File
ITR-U
Click here to read all highlights on Budget 2023

02 May 2022 – CBDT notifies form for filing the

‘Updated’ income tax returns

27 April 2022 – Form 26A, Form 27BA, Form 10BD & Form
10BE are available on the income tax portal.

20 April 2022 – Income Tax Portal announced that UDIN

update functionality is enabled for Forms filed from
June 2021 onwards.

Budget 2022 Updates

New provision is introduced to allow taxpayers to

update the past return and include omitted income by
additional tax payment.

Income from transfer of digital assets such as crypto to

be taxed at 30%.

The surcharge on the long-term capital gains (LTCG)

has been capped at 15%

Click here for the latest Press release on income tax due
dates

Browse By Topics
 House Business, Efiling Income Income Tax
Property Professional & Tax Return Refunds
Freelance

Paying Tax Capital Gains Other income

Salary Income
Due Income sources

Advance Tax NRI HUF Income Tax

Notices

What is Income Tax?

Income tax is a type of tax that the central government
charges on the income earned during a financial year by the
individuals and businesses. Taxes are sources of revenue for
the government. Government utilizes this revenue for
developing infrastructure, providing healthcare, education,
subsidy to the farmer/agriculture sector and in other
government welfare schemes. Taxes are mainly of two types,
direct taxes and indirect form of taxes. Tax levied directly on
the income earned is called as direct tax, for example
Income tax is a direct tax. The tax calculation is based on
the income slab rates applicable during that financial year.

Direct Taxes are broadly classified as :

Income Tax – This is taxes an individual or a Hindu

 Undivided Family or any taxpayer other than
companies, pay on the income received. The law
prescribes the rate at which such income should be
taxed

Corporate Tax – This is the tax that companies pay on

the profits they make from their businesses. Here again,
a specific rate of tax for corporates has been prescribed
by the income tax laws of India.

Who should pay Income Tax?

– Types of Tax Payers
The Income tax Act has classified the types of taxpayers in
various categories. Different tax rules apply for different
types of taxpayers.
Taxpayers are categorized as below:

Individuals

Hindu Undivided Family (HUF)

Firms

Companies

Association of Persons(AOP)

Body of Individuals (BOI)

Local Authority

Artificial Judicial Person

Further, Individuals are broadly classified into residents and

non-residents. Resident individuals are liable to pay tax on
their global income in India i.e. income earned in India and
abroad. Whereas, those who qualify as Non-residents need
to pay taxes only on income earned or accrued in India. The
residential status has to be determined separately for tax
purposes for every financial year on the basis of the
individual tenor of stay in India.Resident Individuals are
further classified into below mentioned categories for tax
purposes-

Individuals less than 60 years of age

Individuals aged more than 60 but less than 80 years

Individuals aged more than 80 years

Types of Income – What are

the 5 heads of income?
Everyone who earns or gets an income in India is subject to
income tax.(Yes, be it a resident or a non-resident of India ).
For simpler classification, the Income tax department breaks
down income into five main heads:

Head of
Nature of Income covered
Income

Income
Income from savings bank account interest,
from
fixed deposits, winning in lotteries is taxable
Other
under this head
Sources

Income
from Income earned from renting a house property
House is taxable under this head of income
Property

Income
Surplus Income from sale of a capital asset
from
such as mutual funds, shares, house property
Capital
etc is taxable under this head of Income.
Gains
 Profits earned by self employed individuals,
Income businesses , freelancers or contractors &
from income earned by professionals like life
Business insurance agents, chartered accountants,
and doctors and lawyers who have their own
Profession practice, tuition teachers are taxable under
this head.

Income
Income earned from salary and pension is
from
taxable under this head of income
Salary

Taxpayers and Tax Slabs

Each of these taxpayers is taxed differently under the Indian
income tax laws. While firms and Indian companies have a
fixed rate of tax calculated on their tax profits, the
individual,HUF, AOP and BOI taxpayers are taxed based on
the income slab they fall under. People’s incomes are
grouped into blocks called tax brackets or tax slabs. And
each tax slab has a different tax rate. Rate at which income
is charged to tax increases with increase in income. Budget
2020 introduced a ‘New tax regime’ for the Individuals and
HUF taxpayers :

What is the Existing / Old

Income Tax Regime?
The old tax regime provides 3 slab rates for levy of income
tax which are 5%, 20% tax rate and 30% for different brackets
of income. The individuals have been given the option to
continue with this Old tax regime and they can claim
deductions of allowances like Leave Travel Concession (LTC),
House Rent Allowance (HRA), and certain other allowances.
Additionally, deductions for tax saving investments as per
section 80C (LIC, PPF ,NPS etc) to 80U can be claimed.
Standard deduction of Rs 50,000, deduction for interest paid
on home loan.
Tax slab rates applicable for Individual taxpayer below 60
years for Old tax regime is as below:

Income Range Tax Tax to be paid

rate

Up to 0 No tax
Rs.2,50,000

Rs 2.5 lakhs - Rs 5% 5% of your taxable income

5 lakhs

Rs 5 lakhs - Rs 10 20% Rs 12,500+20% on income above

lakhs Rs 5 lakh

Above 10 lakhs 30% Rs 1,12,500+30% on income

above Rs 10 lakh

There are two other tax slabs for two other age groups:
those who are 60 and older and those who are above 80.A
word of note: People often misunderstand that if they earn
let’s say Rs.12 lakhs, they will be paying a 30% tax on Rs.12
lakhs i.e Rs.3,60,000. That’s incorrect. A person earning 12
lakhs in the progressive tax system, will pay Rs.1,12,500+
Rs.60,000 = Rs. 1,72,500. Check out the income tax slabs for
previous years and other age brackets.

Income Tax Slabs Under New

Tax Regime
From the FY 2020-21, a new tax regime is available for
individuals and HUFs with lower tax rates and zero
deductions/exemptions. Individuals and HUF have the
option to choose the new regime or continue with the old
regime. The new tax regime is optional and the choice should
be made at the time of filing the ITR. If the old regime is
continued than all the deductions/exemptions as available
can be availed by the taxpayer.

The income tax slabs under the new tax regime for FY 2022-
23 (AY 2023-24) are:

New tax regime slab rates Existing/old tax regime

(FY 2022-23) slab rates (FY 2022-23)

Up to Rs.2.5 lakh Nil Up to Rs.2.5 lakh Nil

Rs 2.5 lakh to Rs 5 lakh 5% Rs 2.5 lakh to Rs 5 5%

lakh

Rs 5 lakh to Rs 7.5 lakh 10% Rs 5 lakh to Rs 10 20%

lakh

Rs 7.5 lakh to Rs 10 15% Income above Rs 10 30%

lakh lakh

Rs 10 lakh to Rs 12.5 20%

lakh

Rs 12.5 lakh to Rs 15 25%

lakh

Income above Rs 15 30%

lakh

In Budget 2023, the income tax slabs under the new tax
regime for FY 2023-24 (AY 2024-25) are revised as follows:

New tax regime FY 2023-24 New tax regime FY 2022-

(After budget) 23
(Before budget)

Income up to Rs 3 lakh Nil Up to Rs.2.5 lakh Nil

Rs 3 lakh to Rs 6 lakh 5% Rs 2.5 lakh to Rs 5 5%

lakh

Rs 6 lakh to Rs 9 lakh 10% Rs 5 lakh to Rs 7.5 10%

lakh

Rs 9 lakh to Rs 12 lakh 15% Rs 7.5 lakh to Rs 10 15%

 lakh

Rs 12 lakh to Rs 15 lakh 20% Rs 10 lakh to Rs 12.5 20%

lakh

Income above Rs 15 30% Rs 12.5 lakh to Rs 15 25%

lakh lakh

Income above Rs 15 30%

lakh

Most of the deductions like deductions and exemptions are

not allowed if the taxpayers opts for the New Tax regime.
However he exemptions and deductions available under the
new regime are:

Transport allowances in case of a specially-abled

person.

Conveyance allowance received to meet the

conveyance expenditure incurred as part of the
employment.

Any compensation received to meet the cost of travel

on tour or transfer.

Daily allowance received to meet the ordinary regular

charges or expenditure you incur on account of
absence from his regular place of duty.

Exceptions to the Income Tax

Slab
One must bear in mind that not all income can be taxed on
slab basis. Capital gains income is an exception to this rule.
Capital gains are taxed depending on the asset you own
and how long you’ve had it. The holding period would
determine if an asset is long term or short term. The holding
period to determine nature of asset also differs for different
assets. A quick glance of holding periods, nature of asset
and the rate of tax for each of them is given below.

Financial year
The financial year is a one-year period that the taxpayers
use for accounting and financial reporting purposes. It is the
year in which the income is earned. According to the Income
Tax Act, such a period begins from 1st April of the calendar
year to 31st March of the next calendar year. It is abbreviated
as “FY”. For example, for the financial year starting from 1st
April 2022 and ending on 31st March 2023, it can be written
as FY 2022-23.

Assessment year
The one year period from 1st April to 31st March starting
immediately after the financial year is termed as assessment
year. This period is called the assessment year because all
the taxpayers have to evaluate their income earned in the
financial year and pay taxes in this year. For example, for
incomes earned during the FY 2022-23, the assessment year
will be AY 2023-24.

Assessee
The assessee is a person or a group who assesses his/her
income and pays tax as per the Income Tax Act. The
assessee can be an individual, a partnership firm, a
company, an Association of Persons (AOP), trust, etc.

What is PAN?
PAN is an abbreviation for the Permanent Account Number. It
is a unique 10-digit alphanumeric digit issued by the Income
Tax Department to Indian taxpayers. All the tax-related
transactions and information of a person are recorded
against their unique permanent account number. When the
person has to pay advance tax or self assessment tax,
he/she needs to mention the PAN number. Also, where the
person submits his PAN to certain entities like banks, mutual
fund companies, etc. The financial information from such
entities goes to the income tax department via PAN. This
allows the taxman to link all tax-related activities with the
department. Hence, just by putting a permanent account
number the taxman can identify all your financial
transactions.

What is TAN?
TAN is an abbreviation for Tax Deduction and Collection
Account Number. It is a unique 10 digit alpha numeric digit
allotted by the Income Tax Department of India. All persons
responsible for deduction (TDS) or collection of tax (TCS) are
reresponsible for obtaining TAN. It is compulsory to quote the
TAN in TDS/TCS return, any TDS/TCS payment challan, and
TDS/TCS certificates.

Residents and non residents

Levy of income tax in India is dependent on the residential
status of a taxpayer. Individuals who qualify as a resident in
India must pay tax on their global income in India i.e. income
earned in India and abroad. Whereas, those who qualify as
Non-residents need to pay taxes only on their Indian income.
The residential status has to be determined separately for
every financial year for which income and taxes are
computed.

Income Tax Payment

Tax Deducted at Source (TDS)

For specified payments, tax is deducted at source by the
payer when making payment to the recipient of income. The
recipient of income can claim the credit of the TDS amount
by adjusting it with the final tax liability.

Advance Tax
The taxpayer must pay tax in advance when his estimated
income tax liability for the year exceeds Rs 10,000. The
government has specified due dates for payment of
advance tax installments.

Self-Assessment Tax
It is the balance tax that the taxpayer has to pay on the
assessed income. The self-assessment tax is calculated after
reducing the advance tax and TDS from the total income tax
calculated on the assessed income.
e-Payment of Taxes
The taxpayers can pay advance tax, self-assessment tax
online from the NSDL website. However, the taxpayer should
have a net banking facility with an authorised bank.

Filing your ITR

Filing of income tax return online has been made mandatory
for all classes of taxpayers barring few exceptions :

Taxpayers aged 80 and above need not filed return

online

Taxpayers having an income less than Rs 5 lakhs and

not claiming a refund need not file return online

For the rest, online filing is mandatory. Do note that

deadlines for filing of returns have also been prescribed. For
most individual taxpayers, the due date for filing return of
income is 31 July immediately following the concerned
financial year. If you do not file on time, here are some
disadvantage:

You will be denied carry forward of losses (except house

property loss) to future years

Delay processing of refund claims if any

Difficulty on getting home loans

Levy of late filing fee upto Rs 10,000 under Section 234F

Levy of interest under 234A if there are taxes due as on

31 July.

E-filing online is a more complete and better alternative to

filing on the income tax website. Also it is for more than just
e-filing your income tax return. Clear helps you claim all the
deductions you’re eligible for and helps you invest. Once you
file your return online, you either e-verify the same or take a
print of the ITR V and send it to CPC, Bengaluru for
processing of your return.
Read our detailed article on e-verification of return of
income.
Here’s a guide to e-filing your first tax return on Clear.

Income Tax Return

The taxpayer shall file an income tax return every year via ITR
forms prescribed by the income tax department. The
government has prescribed seven ITR forms through which
the taxpayer can file his income tax return. The taxpayer has
to choose the appropriate ITR forms and file his income tax
return.

Income Tax Forms List

The seven ITR forms are:

ITR-1: Individuals (residents) having income from salary,

one house property, other sources, agricultural income
less than Rs 5,000 and with a total income of up to Rs
50 lakh

ITR-2: Individuals/HUFs not having any business or

profession under any proprietorship

ITR-3: Individuals/HUFs having income from a

proprietary business or profession

ITR-4: Individuals/HUFs having presumptive income

from business or profession

ITR-5: Partnership firms or LLPs

ITR-6: Companies
 ITR-7: Trusts

Documents Required for ITR Filing

Form 16, Form 26AS, Form 16A, proof of tax saving
investments made, bank account details etc are some of the
crucial details / documents that you need to be ready with
before filing your return. Further the documents you are
going to need to file your tax return are largely going to
depend on your source of income. Here is our detailed article
on documents you need for filing of your return of income.

How can I calculate my

income tax?
Individuals should calculate income tax depending on the
nature of income. The salaried individual can take the
eligible exemptions available for various allowances
received. Individuals/HUF can take a deduction under
Sections 80C to 80U, deduct it from the gross total income,
and calculate the income tax liability. Also, the total income
tax liability should be adjusted by the taxes paid, such as
advance tax, TDS, etc. Also, the taxpayer should apply the
effect of rebate under Section 87A and relief under Section
89, Section 90, and Section 91 to arrive at the net amount of
income tax payable.

Every income that your receive should form part of your

income tax return. Of course, the law does provide for
exemption of certain incomes eg. dividend income from an
Indian company, LTCG on listed equity shares upto Rs 1 lakh
in any financial year etc. Therefore, here is a quick guideline
you can probably follow to compute taxes due on your
income:
 List down all your income – be it salary, rental income,
capital gains, interest income or profits from your
business or profession

Remove incomes that are exempt under law

Claim all applicable deductions available under every

source of income . eg claim standard deduction of Rs
50,000 from salary income, claim municipal taxes from
rental income, claim business related expenses from
your business turnover etc

Claim all applicable exemptions under every head of

income eg. amount reinvested in another house
property can be claimed as exemption from capital
gains income etc

Claim applicable deductions from your total income eg

the 80 deductions like 80C, 80D, 80TTA, 80TTB etc

You will now arrive at your taxable income. Check the

tax slab you fall under and accordingly arrive at your
income tax payable.

The government keeps introducing and altering tax slabs,

schemes and tax benefits, so it’s a good idea to keep up with
the Budget.

What is computation of
income?
The process of calculating taxable income after taking into
account the income from all the five heads (salary, house
property, capital gains, business or profession, and other
sources), exemptions, deductions, rebate, set off of losses,
etc., is called computation of income. After computation of
income, the taxpayer can compute the income tax liability
as per the Income Tax Act.
Rebate u/s 87A
Rebate under Section 87A allows taxpayers reduce their
income tax liability. If you are a resident individual and the
amount of your total income after reducing Chapter VI-A
deductions (Section 80C, 80D, 80U, etc) does not exceed Rs
5 lakh in a financial year, you can claim a tax rebate up to Rs
12,500. This means, if your total tax payable is less than Rs
12,500, then you will not have to pay any tax.

In Budget 2023, a tax rebate on income of Rs 7 lakhs has

been introduced under the new tax regime. Therefore, you do
not have to pay tax if your taxable income is below 7 lakhs
under the new tax regime.

e-File Returns
The taxpayer shall electronically file the income tax return
through the e-filing platform of the IT department. To file the
income tax return, the taxpayer should first register himself at
www.incometax.gov.in. Thereafter, the taxpayer can log in to
the website and file his ITR. Also, there is no need to manually
send the acknowledgement of the return to the income tax
department. The income tax department now allows e-
verification of the ITR in different ways, which completes the
income tax return process.

What is ITR –V?

Form ITR-V is an income tax return verification form
generated after the taxpayer submits files income tax return
and submits it to the income tax department. The ITR-V
should be e-verified or must be sent to CPC Bangalore at
“Income Tax Department – CPC, Post Box No – 1, Electronic
City Post Office, Bangalore – 560100, Karnataka” for
verification. The ITR processing takes plae only if its
verification is completed.

Did you e-file your Tax return

for this year?
You can file your Income Tax Return on ClearTax. Even if you
don’t know anything about taxes, we will take you step-by-
step and help you e-file.Check ClearTax Income Tax E Filing.

Income Tax Saving

Instruments
The taxpayer can save tax by tax planning. A taxpayer can
do tax planning by investing in tax-saving instruments. It
helps in reducing the income tax liability. Section 80C to 80U
of the Income Tax Act allows a deduction for certain
expenditures and investments from the total computed
income. Some of the popular Section 80C investments are:

Popular Section 80C Investments

Particulars ELSS PPF NSC 5-Year SCSS

Tax
Saving
FD

Section 80C Yes Yes Yes Yes Yes

 Benefit

Type of Equity Fixed Fixed Fixed Fixed

Investment Income Income Income Income

Lock-in 3 15 5 Years 5 Years 5 Years

Period Years Years

Maximum No Rs 1.5 No Max Rs 1.5 Rs 15

Investment Max lakh Limit lakh lakh
Limit

*ELSS and NSC have no upper investment limit. However, you

get tax benefits under Section 80C only up to Rs 1.5 lakh per
financial year.

Health Insurance and Medical

Expense Deduction
Apart from the 80C deduction, a taxpayer can also take a
tax benefit under Section 80D for health insurance premium
and medical expenditure incurred for self, family and
parents.

Maximum
Maximum
deduction
Person insured deduction 60
Below 60
years or older
years

You, your spouse, your

 children Rs. 25,000 Rs. 50,000

Your parents Rs. 25,000 Rs. 50,000

Preventative health
Rs. 5,000 Rs. 5,000
checkup

Maximum deduction
(includes preventive Rs. 50,000 Rs. 1,00,000
health checkup)

Education Loan Deduction

Under Section 80E, the taxpayer can claim a deduction for
the interest paid on a loan taken for higher education. There
is no limit to claim such a deduction in the income tax return.

Home Loan Deduction

Under Section 24, the taxpayer can claim a deduction for
interest paid on a housing loan during the relevant financial
year. The amount of deduction will depend upon whether the
house is self-occupied or let out. The taxpayer can also
claim a deduction of the principal amount of loan under
Section 80C up to Rs 1.5 lakh.

Maximum
allowed
(for self- Maximum allowed (for
Deduction on
occupied property on rent)
house
property)
 Rs.
1,50,000
within
Stamp duty and
the Rs. 1,50,000 within the
registration +
overall overall limit of Section 80C
principal
limit of
Section
80C

No cap (but rental income

Deduction on must be shown in the
home loan Rs. income tax return) Further,
interest under 2,00,000 maximum loss from house
Section 24 property capped at Rs 2
lakhs

Deduction for
first-time
homeowners
Rs.
under Section –
50,000
80EE *certain
conditions
apply

Deduction for Interest Income

The taxpayer can also claim a deduction for interest on
deposits from banks under Section 80TTA of the Income Tax
Act. The individuals can claim up to Rs 10,000 deduction
under the said section.

Important Income Tax Dates

2023
 15th June 2023 – Due date for the first instalment of
advance tax for the FY 2023-24

31st July 2023 – Income tax return filing for FY 2022-23

for individuals and entities not liable for tax audit and
who have not entered into any international or specified
domestic transaction

15th September 2023 – Due date for the second

instalment of advance tax for the FY 2023-24

30th September 2023 – Submission of audit report

(Section 44AB) for AY 2023-24 for taxpayers liable for
audit under the Income Tax Act.

31st October 2023 – ITR filing for taxpayers requiring

audit (not having international or specified domestic
transactions).

31st October 2023 – Submission of audit report for AY

2023-24 for taxpayers having transfer pricing and
specified domestic transactions

30th November 2023 – ITR filing for taxpayers requiring

audit (not having international or specified domestic
transactions).

15th December 2023 – Due date for the third instalment

of advance tax for the FY 2023-24

31st December 2023 – Last date for filing a belated

return or revised return for FY 2022-23.

Income Tax Law

Income Tax Act

The Income Tax Act includes all the provisions that govern
the country’s taxation. Every year, the Finance Minister
presents a budget in February. The Union Budget brings in
various amendments to the Income Tax Act. The most recent
Union Budget presented by the current Finance Minister
included the introduction of a new tax regime.

Apart from the IT Act, the other components of the income

tax law are income tax rules, circulars, notifications and case
laws. All of these help in the implementation of income tax
law and collection of taxes.

About Income Tax Department

India
The income tax department is a government agency. The
Act empowers the income tax department to collect direct
tax on behalf of the Government of India. The Ministry of
Finance manages the revenue functions of the Government
of India. The finance ministry has given the task of
administration of direct taxes like Income-tax, etc., to the
Central Board of Direct Taxes (CBDT). The CBDT is one of the
parts of the Department of Revenue in the Ministry of
Finance. The CBDT administers the direct tax laws through
the IT Department. Thus, The income tax department is a
government agency that administers the Income-tax law
under the control and supervision of the CBDT. The Income
tax department has been given the power to collect direct
tax on behalf of the Government of India.

Budget 2022 – All Income Tax

Related Announcements
New updated return: A new provision is introduced to
allow taxpayers to update the return and include any
omitted income on payment of additional tax. The
updated return needs to be filed within two years from
the end of the relevant assessment year.

Surcharge: Corporate surcharge to be reduced from 12%

to 7%.

Startups: The eligible startups under Section 80-IAC

benefits are now extended to the eligible startups
incorporated until March 31, 2023.

Alternate Minimum Tax: AMT to be reduced to 15% for

co-operative societies.

Crypto taxation: Income from transfer of digital assets

such as crypto to be taxed at 30%. No deductions will
be allowed except the cost of acquisition of digital
assets. Loss on sale of digital assets cannot be set off
against any other income. TDS at 1% will be levied if
income is over the threshold. Gifting of digital assets will
be taxable in the hands of the recipient.

NPS: The Finance Ministry has proposed to increased

the deduction limit of employers contribution to the
National Pension Scheme (NPS) Tier-I account for state
government employees from 10% to 14%.

Section 80DDB: The parent/guardian of the differently-

abled can take a tax deduction for payment to the
insurance scheme that provides for the payment of the
annuity or lump sumto the differently-abled dependant
during the lifetime of the parent and guardians on
attaining their age of sixty years or more, and the
payment or deposit to such scheme has been
discontinued.

Eligible business deductions: Any surcharge and cess

levied on income are not allowed as business
expenditure.

Losses set off rules: Brought forward loss cannot be set

 off against undisclosed income detected during any
survey or search.

Income Tax – FAQs

When it is mandatory to file

return of income?
The companies and firms are mandatorily required to file an income
tax return (ITR). However, individuals, HUF, AOP, BOI should file ITR if
the income exceeds the basic exemption limit of Rs 2.5 lakh. This limit
is different for senior citizens (Rs 3 lakhs) and super senior citizens (Rs
5 lakh).

Can i file return of income even if

my income is below taxable
limits?
Yes, you can file return of income voluntarily even if your income is less
than basic exemption limit

What documents are to be

enclosed along the return of
income?
There is no need to enclose any documents with the return of income.
However, one should retain the documents to produce before any
competent authority as and when required in future.

Should I disclose all my income in

the return even if it is exempt?
Yes. Income from every source including exempt income must be
disclosed. The same can be shown under the Schedule EI.
Should I e-verify to get the IT
refund?
e-Verification of the income tax return filed electronically is
mandatory to complete the process of ITR filing. One should e-verify
income tax returns within the stipulated time. Non-verified ITR will be
treated as invalid. You can e-verify ITR by Aadhaar OTP, bank ATM,
Electronic Verification Code (EVC), and net-banking.

Can I take Section 87A rebate

from tax on long-term and short-
term capital gains if there is no
other income?
You can take rebate under Section 87A from tax on long-term and
short-term capital gains. However, if there is long-term capital gain
from sale of equity shares or equity oriented funds (Section 112A), you
cannot adjust rebate under Section 87A from tax on such LTCG.

Can I file a return after

completion of the assessment
year?
The Budget 2022 proposed to introduce an ‘Updated’ return that
can be filed within 24 months of the end of the relevant AY, on the
payment of additional tax. Even if you have not filed original return
before the due date specified in the Income Tax Act, you can file the
‘updated’ return.

What are the maximum

exemption limit and slab rates
applicable for Assessment Year
2023-24?
 Resident Senior Citizens Super
Income and non- (Above 60 yrs Senior
Slab resident but less than Citizens
individuals 80 yrs) (Above 80
yrs)

Upto Rs.
Nil Nil Nil
250,000

Rs. 250,001
– Rs. 5% Nil Nil
300,000

Rs. 300,001
– Rs. 5% 5% Nil
500,000

Rs. 500,001
– Rs. 20% 20% 20%
10,00,000

Above Rs.
30% 30% 30%
10,00,000

Related Income Tax Articles

Income Tax Department Portal – Login & Registration
Guide

incometaxindiaefiling.gov.in – Income Tax e-Filing Guide

Income Tax E Filing

Income Tax Slabs & Rates

Check your Income Tax Refund Status Online

What is Form 26AS?

 What is Form 16?

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