Should I file Income tax return for the FY (2019-2020) ?

"Should I file an income tax (IT) return?" 

This will be a common question to be asked by the people these days.

The answer to the question is "YES". To get into details of who is eligible to pay tax, one needs to understand, as per IT act, what is Income?

The Income Tax Act contains a total of 23 chapters and 298 sections according to the official website of the Income Tax Department of India. Several different parts deal with various aspects of Indian taxes. The specific headings on which you are expected to pay income tax include:

• Salary
• Income from house property
• Capital gains
• Profit and gains from business or profession
• Income from other sources

Salaried Income

Several different parts deal with various aspects of Indian taxes. The numerous heads for which you are expected to pay income for salaries include wages, pension, annuity, gratuity, fees, commissions, dividends, leave encashment, annual addition and transferred balance in recognized Provident Fund (PF) and employee pension plan contribution.

Income from house property

Rental income is paid as house income from properties owned by an individual other than those occupied by him. If the property is vacant then a notional revenue is included under this heading.

Capital Gains

Gains from the capital deployed is also counted as Income such as Long term capital gain (LTCG) and short term capital gains (STCG).

Profit and gains from business or profession

Business or professional compensation requires profit / loss from a corporate company or a practice, any reward, salary or bonus to a business partner

Income from other sources

Income from other sources includes interest on bank deposits and shares, dividends, royalty income, winning on, among others, lotteries and races, and gifts.

If one possesses any kind of income as mentioned above, it is compulsory to file an income tax return. The finance act has given some rebates and minimum thresholds to decide who can pay tax or who should not pay and that threshold is 2.5 Lac of total Income

Find below the slabs of Income and Tax slabs:

Slab for Individual Tax Payer & HUF

Slab for Senior Citizens (>60 years & <80 years of age)

Slab for Super Senior Citizens (>=80 years of age)

I hope it is clear now that filing income tax is compulsory and the slabs will help one understand and calculate the tax in an efficient manner.