With the changes in the taxation system in our nation, many people are still wondering if the previous rules of Income Tax Returns are still valid. If you are a first time tax payer, we are sure you are feeling very confused regarding the exact rules you need to follow. Though there are not many changes in the ITR filing rules, there are some changes that have been implemented in this year(Fy 2017-18 ay 2018-19). If you are going to be filing your returns for the first time this year, here are a few things that you need to keep in mind.
1. 10% tax slab decreases to 5%
The lowest slab of tax was previously 10%, which has now been reduced to 5%. This is one of the biggest changes in the ITR made this year. If you are taxable under the new system for the first time, you need to keep in mind that you can also get rebates on your tax to be paid by making proper investments. This reduction in rate of tax to be paid will save a lot of money for people under the lowest tax slab.
2. Reduction in rebate for tax payers
The amount of rebate has also decreased in this new system. Though the amount of rebate is applicable in certain cases, you need to keep in mind that you should use the same while filing your returns.
3. Tax exemption on reinvestment of capital gains
Previously the reinvestment of capital gains was under the purview of tax, hence you had to pay tax on it. According to the new change, this particular head is exempt from tax. So if you have reinvested capitals in the assessment year in which it is rising, you will not have to pay tax on it.
4. Simple tax form introduced
This is one of the best change in our nation’s tax system. The taxation authorities have introduced a single form for people filing taxes. Though this is mainly for people filing under ITR1, it simplifies the whole system of filing your returns. You can now self-evaluate your tax or if required take the help of a professional who can do it for you.
5. Tax return time period revised
Previous you would get 2 years to revise your returns. But now that has been changed to one year. From this assessment year, you will get one year, from the last date of filing for that year, to make amends in your income tax returns.
There are some important changes that you need to remember when you are paying your taxes for the first time. It is crucial to have a good idea regarding how to do it if you are doing it for the first time. According to professionals you should probably get some expert help if you are unsure on how to file the returns.This will ensure that you do not make any mistake and get back the refund, if any, on time. Seeking help from experts at https://writingcheap.com/buy-essay-cheap.html will help you produce the most competent and detailed papers and essays as above.