The last date to file income tax return (ITR) is July 31, which is just around the corner. Taxpayers can pay their income tax online on the e-filing portal.
After you fill the form, your tax liability may be more than the TDS paid during the year. In such a case, you may have to cough up the outstanding tax liability. This liability can be paid online through your bank account.
However, this must be at one of the 28 banks where tax payments are permitted by the Income Tax (I-T) department.
These banks include Axis Bank, Bandhan Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, City Union Bank, DCB Bank, Federal Bank, HDFC Bank, ICICI Bank and IDBI Bank.
Other banks in the list of 28 banks are Indian Bank, Indian Overseas Bank, IndusInd Bank, Jammu & Kashmir Bank, Karur Vysya Bank, Kotak Mahindra Bank, Karnataka Bank, Punjab National Bank, Punjab & Sind Bank, RBL Bank, State Bank of India, South Indian bank, UCO Bank, Union Bank and Dhanlaxmi Bank.
How long it takes for the refund?
It is also vital to note that if you have paid TDS (tax deducted at source) and TCS (tax collected at source) during the year and overall tax paid is more than the tax liability, the tax department will issue a refund within a few days or weeks depending on a number of factors. This refund is also sent on the bank account linked to the e-portal.
New tax regime
It is also noteworthy to mention that the Finance Act 2023 changed the provisions of Section 115BAC as a result of which new tax regime became the default tax regime for the assessees. In this regime, taxpayers are supposed to pay tax at lower rate in exchange for letting go of most deductions and exemptions.
In the new tax regime, taxpayers are supposed to pay 5 percent income tax on the income between ₹3 to 6 lakh and 10 percent on income between ₹6 to 9 lakh. Meanwhile, resident individuals whose total income does not exceed ₹7 lakh, a tax rebate of up to ₹25,000 under section 87A is applicable.
This rate increases to 15 per cent, 20 per cent and 30 percent as the income increases whereas the rate of cess (4%) and surcharge (10% to 37%) remain the same.
The rate of surcharge on income above ₹5 crore has been slashed from 37 per cent to 25 per cent under the new tax regime. The highest effective tax rate, therefore, has been reduced from 42.74 per cent to 39 per cent under the new tax regime