Income Tax Rules: People earning Rs 50 thousand per month will have to pay this much tax, know the rules of income tax...
If you are employed then you may have received Form 16 from the company. If you have received it, do not delay and file an Income Tax Return (ITR). Even if your salary is Rs 50 thousand per month i.e. Rs 6 lakh annually, you will still have to file an income tax return. You can file ITR in two ways. First from the old system (old regime) and second from the new system (new regime).
This is the difference between the two regimes
Old Regime: This is suitable for salaried individuals who are paying home loan EMIs or investing in insurance/health insurance or any other tax saving scheme.
New Regime: This is suitable for those who have got a new job. There is no home loan or interest liability. There is no investment anywhere. If you are an old employee and have not made any investment or have any loan.
How much tax will have to be paid on a salary of Rs 50 thousand?
According to the old regime
First situation: At the rate of Rs 50 thousand per month, your annual income is Rs 6 lakh. If you have not made any kind of investment anywhere then you will get a standard discount of only Rs 50 thousand. In such a situation, your annual taxable income will be considered to be Rs 5.50 lakh. You will have to pay a tax of Rs 23,400 on this income.
Second situation: If you invest your money somewhere, you can get tax exemption. Suppose you invest in tax saving schemes covered under 80C like SSY, SCSS, PPF, NPS, FD, Life Insurance, etc. then you can avail exemption of Rs 1.50 lakh annually. In this way, you will get a rebate of Rs 2 lakh (by investing Rs 50 thousand in standard deduction and Rs 1.50 lakh in 80C). In such a situation, your annual taxable income will be considered to be Rs 4 lakh. You will not have to pay any tax on this income.
According to the new regime
According to the new regime, if you file an ITR, you will not have to pay any tax. Actually, in the new tax system, only a standard deduction of Rs 50 thousand is available. In this case, your annual taxable income will be Rs 5.50 lakh. You will not have to pay any tax on this income.
You can switch regimes
Any working person can choose any regime of his choice. The company deducts tax from your salary accordingly. If the salaried person does not choose any regime by March, then it is considered the new regime by default. If you have not chosen any tax regime or have chosen a new one and want to file ITR as per the old regime, then you can switch the tax regime. You can switch from new to old or from old to new regime at any time every year.
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