An individual earning any Income more than the eligible criteria has to pay income tax according to the rate defined as per the slabs defined below.
Tax Slab for Individual
Individual (resident or non-resident), who is of the age of less than 60 years on the last day of the relevant previous year:
| Tax Slab | Rate |
| Up to 250000 | Nil |
| 250000-500000 | 5% |
| 500000-1000000 | 20% |
| Above 1000000 | 30% |
Resident Individual who is of the age of 60 years or more but below 80 years (Senior Citizen) at any time during the relevant previous year:
| Tax Slab | Rate |
| Up to 300000 | Nil |
| 300000-500000 | 5% |
| 500000-1000000 | 20% |
| Above 1000000 | 30% |
Resident Individual who is of the age of 80 years (Super Senior Citizen) or at any time during the relevant previous year:
| Tax Slab | Rate |
| Up to 500000 | Nil |
| 500000-1000000 | 20% |
| Above 1000000 | 30% |
Surcharge
- 10% of income tax where total income exceeds Rs. 50,00,000.
- 15% of income tax where total income exceeds Rs. 1,00,00,000.
Health and Education cess
4% of income tax + surcharge.
Individuals can file following Income Tax Return Form written below according to their eligibility:
1. Individuals having total income up to 50 lakhs
ITR-1: ITR-1 is for a resident individual whose total income for the assessment year is upto 50 lakhs and includes:
- Income from Salary/ Pension; or
- Income from One House Property (excluding cases where loss is brought forward from previous years); or
- Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)
- Agricultural income up to Rs.5000
2. Individuals having total income more than 50 lakhs
ITR-2: ITR 2 is for those individuals or a Hindu Undivided Family (HUF) whose total income for the AY exceeds 50 lakhs which includes:
- Income from Salary/Pension;
- Income from House Property;
- Income from Other Sources (including Winnings from Lottery and Income from Race Horses).
- If you are an Individual Director in a company
- If you have/had investments in unlisted equity shares at any time during the financial year
- Being a resident not ordinarily resident and non-resident
- Income from Capital Gains;
- Foreign Assets/Foreign income
- Agricultural income more than Rs 5,000
Further, in a case where the income of any other person like one’s spouse, child etc. is to be clubbed with the income of the assessee, this Return Form can be used.
ITR-3: ITR3 Form is for those individuals or a Hindu Undivided Family who have income from proprietary business or are carrying on any profession. Businesses whose turnover exceeds Rs 2 crore are not eligible to opt for a presumptive scheme and have to file ITR-3.
The persons having income from following sources are eligible to file ITR 3 :
- Carrying on a business or profession
- If you are Director in any company
- If you have/had investments in unlisted equity shares at any time during the financial year
- Return may include income from House property, Salary/Pension and Income from other sources
- Income of a person as a partner in the firm
ITR-4: ITR 4 is applicable to individuals and HUFs, Partnership firms (other than LLPs) who are residents and having income from a business or profession. It includes those who have opted for the presumptive income scheme as per Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act.