As a first-time tax filer in India, you may be eligible for certain provisions and benefits that aim to simplify the tax filing process and reduce your tax liability. Here are the answers to some common questions that you might have.
Table of contents [Show]
What are Simplified Tax Return Forms?
The Income Tax Department has introduced simplified tax return forms, such as ITR-1 (Sahaj), which are specifically designed for individuals with straightforward income sources. These forms require less detailed information, making it easier for first-time filers to report their income and deductions.
Am I eligible for standard deduction?
Introduced in the Union Budget 2018, the standard deduction allows taxpayers to claim a fixed deduction from their salary income. For the financial year 2022-23, the standard deduction is ₹50,000. This deduction is available to all salaried individuals, including first-time filers, and helps reduce their taxable income.
What are Tax Rebates and Exemptions?
Under Section 87A, individuals with a total income up to ₹5 lakh can claim a tax rebate of up to ₹12,500. Additionally, deductions under Section 80C for investments in specified schemes like the Public Provident Fund (PPF) and life insurance premiums can help lower your taxable income.
How does Pradhan Mantri Garib Kalyan Yojana (PMGKY) work?
The PMGKY scheme was introduced to provide relief to taxpayers during challenging times. Under this scheme, individuals can declare their undisclosed income and pay tax at a specified rate, along with a penalty. This provision helps individuals regularize their undisclosed income and come into compliance with tax regulations.
What is the Presumptive Taxation Scheme?
The Presumptive Taxation Scheme is available to certain categories of taxpayers, including professionals and small businesses. Under this scheme, eligible taxpayers can declare a deemed income based on a specified percentage of their total receipts. This simplifies the tax calculation process and reduces the burden of maintaining detailed accounting records.
Look up more articles here for a smooth first time tax-filing process. All the best!
