Question 1

What is the difference between the old and new income tax regimes?

Accepted Answer

Under the old regime you can claim deductions and exemptions (such as Section 80C, HRA, and home loan interest) but face higher slab rates. The new regime offers lower slab rates with most deductions unavailable unless specifically allowed. For each financial year, salaried taxpayers can choose the regime that lowers total tax — compare both using your actual income and deductions before filing.

Question 2

Who must file an income tax return (ITR) in India?

Accepted Answer

You must file if gross total income exceeds the basic exemption limit, or if you meet other conditions in the Income-tax Act — for example having foreign income, being a company director, holding specified foreign assets, or wanting to carry forward losses. Even below the threshold, filing can help claim TDS refunds or build a compliance history for loans and visas.

Question 3

What is Form 16 and how is it used for ITR filing?

Accepted Answer

Form 16 is a TDS certificate issued by employers summarising salary paid and tax deducted during the financial year. Part A shows tax deposited with the government; Part B shows salary break-up and deductions. Cross-check Form 16 with Form 26AS/AIS on the e-filing portal before filing your ITR so salary and TDS figures match government records.

Question 4

What is TDS and how does it affect my final tax liability?

Accepted Answer

Tax Deducted at Source (TDS) is tax withheld by payers — employers on salary, banks on interest, tenants on rent above thresholds, and others as per the Act — and deposited to the government against your PAN. TDS is not the final tax; you reconcile all income in your ITR, compute total tax, and pay any balance due or claim a refund if excess TDS was deducted.

Question 5

What is Section 80C and who can claim it?

Accepted Answer

Section 80C allows a deduction up to ₹1.5 lakh per financial year for specified investments and payments — such as PPF, ELSS mutual funds, life insurance premium, EPF contributions, and principal repayment on a home loan — when you opt for the old tax regime. The new regime generally does not permit this deduction; plan investments accordingly before the financial year ends.

Question 6

When is the ITR filing deadline for individuals?

Accepted Answer

For most individual taxpayers not subject to a tax audit, the due date for filing ITR for a financial year is typically 31 July of the following assessment year unless extended by the Central Board of Direct Taxes (CBDT). Belated returns can be filed later with applicable fees and interest. Always confirm the date announced for your assessment year on the Income Tax Department portal before filing.

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