Tax payment self DIY (Do it yourself) for the financial year 2024-2025 in assesment year 2025-2026. Most of the tax is auto computed in the income tax portal itself and it will be quite easy to submit details. all you have to do is take a clear data of your earning, investments and then put everything in to your excel sheet, to understand what you are going to show about your earnings and how much tax you are liable to pay. Key points to remember is that upto income less than or equal to 7 lakhs per annum, there is no tax payable. Once the 7 lakhs amount is crossed in the new tax regime, then all tax slabs apply from begining. In the old tax regime there is no tax up to 250000 and 300000 for senior citizens.Lets also take a look at the both the new and old tax regime and their benefits. standard deduction 50000 in old tax regime and 75000 in new tax regime with examples
incometax.gov.in eportal DIY E FILING SELF INCOME TAX PAY
FY 24-25, AY 25-26
totally for do it yourself beginers, FY full form is financial year and AY full form is assesment year. What you are doing now is taken as assesment year and for which year you are submiting details will be taken as financial year. Hence assesment year will be always 1 year more than the financial year.
No at the start of the filing, there will be an option shown whether to opt out of the new tax regime or stay in the new tax regime. it is totally according to your convinience.
NEW TAX REGIME
Income Tax Slabs for FY 2024-25 (AY 2025-26) NEW TAX REGIME
First of all analyze all your earnings, i.e for what you are likely to pay taxes and the tax deducted at source
Come to a conclusion about your taxable income. lets say your annual income is (x)
Apply i.e deduct standard deduction of 75000 from taxable income. now this is (x-75000)
now (x-75000) is the actual or net taxable income (after standard deduction reduction)
now check which tax slabs you come in
FOR UP TO Rupees 3,00,000 (3lakhs), tax=Nil i.e there is no tax
From 3,00,001 (3 lakh one rupee) to 7,00,000 (7 lakhs) income is taxable at 5% only when your total income is exceeding 7 lakh scenario. Exactly till 7 lakhs, there is no tax liability. Now at this juncture, a rebate comes in to play which helps in marginal increases if the 7 lakh mark is crossed. So if your annual income is 710000, as per actual calculation 0-3 lakh is zero + 3-7lakh is 4lakh*.05 + 7-7 lakh 10 thousan diff is 10000*.1=1000
0+20000+1000=21000 as per rebate, as you have marginally crosed 7lakh by 10000, and it is less than total tax payable, the lower value i.e. 10000 becomes your taxable income.
This rebate will be useful only when your marginal increase above 7 lakhs is less than total tax payable according to calcualtions.
Rs. 7,00,001 (7 lakh one rupee) to Rs. 10,00,000 (10 lakhs) – 10% of income
Rs. 10,00,001 (10 lakh one rupee) to Rs. 12,00,000 (12 lakhs) – 15% of income
Rs. 12,00,001 (12 lakh one rupee) to Rs. 15,00,000 (15 lakhs) – 20% of income
Above Rs. 15,00,000 (15 lakhs) – 30% of income
0-3lakh=nil=0 let this value be x
3-7 lakh difference is 4 lakhs@5percentage tax, the value is 20000. let this value be y
this value is only payable if income has exceeded 7 lakhs or else no tax liability
25000 rupees of Rebate under Section 87A is available for income up to Rs. 7 lakh, meaning taxpayers with total income not exceeding Rs. 7 lakh have zero tax liability.
OLD TAX REGIME
Income Tax Slabs Income Tax Rates
Up to Rs. 2,50,000 , THERE IS NO TAX
Rs. 2,50,001 to Rs. 5,00,000 5% THERE IS NO TAX AS REBATE COMES IN TO PLAY.
Rs. 5,00,001 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
for example in old tax regime if a person annual is 600000, deduct standard deduction of 50000 ie 600000-50000 = 550000 which becomes the net taxable income.
now out of the total 550000, up to 250000 is not taxable, then 250000 to 500000 diff is 250000 multiplied by .05=12500
the remaining value is 50000 which crosses the 500000 barrier, hence the 50000 comes in to the slab of 500000-1000000 income which attracts a tax percentage of 20%, hence 50000 multiplied by 0.2 =10000
adding both 12500+10000=22500.
Deductions Allowed under Old Tax Regime
80C, 80D, 80G, 80TTA
HRA, LTA, home loan interest (Section 24)
Education loan interest (Section 80E), etc.
Income Tax Slabs for Senior Citizens
The income tax slabs for senior citizens aged above 60 years but below 80 years under the old tax regime is as follows:
Income Tax Slabs Income Tax Rates
Up to Rs. 3,00,000 Nil
Rs. 3,00,001 to Rs. 5,00,000 5%
Rs. 5,00,001 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
FOR INCOME EXCEEDING 50 LAKHS THERE IS A Surcharge – The amount of income-tax shall be increased by a surcharge at the rate of 2% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 5% of such tax, where total income exceeds ten crore rupees.
For individuals, surcharge rates are as follows:
5% for income between 50 lakhs and 1 crore,
15% for income between 1 crore to 2 crore,
25% for income between 2 crore to 5 crore, and
37% for income over 5 crore (this rate does not apply to taxpayers opting for new regime)