Are you wondering whether you are liable to file the Income Tax return if your income is still not taxable? The answer is yes. According to the Income Tax department, individuals having an annual income of Rs 2.5 lakh or more are mandatorily required to file income tax returns. For senior citizens (individuals between 60 years and 80 years of age), the limit is Rs 5 lakh, according to the taxman. The last date to file your Income Tax return (ITR) for financial year 2019-20 (assessment year 2020-21) is December 31 that is Thursday.
Currently, individuals with an annual income of up to Rs 2.5 lakh are not required to pay any tax. However, if an individual earns between Rs 2.5-5 lakh income tax is payable at the rate of 5 per cent, individuals with income between Rs 5-10 lak, the tax is payable at the rate of 20 per cent and for individuals earning more than Rs 10 lakh, tax is payable at the rate of 30 per cent, according to taxman's website https://www.incometaxindia.gov.in.
Senior citizens earning up to Rs 3 lakh in a year are likely to pay no income tax. Senior citizens with income between Rs 3-5 lakh are supposed to pay income tax at the rate of 5 per cent, senior citizens with income between Rs 5-10 lakh have to pay income tax at 20 per cent and senior citizens with income of more than Rs 10 lakh have to pay tax at the rate of 30 per cent, Income Tax department noted.
Income Tax Department also levies health and education cess at the rate of 4 per cent on the amount of income-tax plus surcharge, the taxman added.