Every earning person in India must pay personal tax should their income exceed a specific level. Although the word “tax” sounds frightening, paying your income tax is not as difficult as it first seems. You can legally save money and file and pay your taxes on time with correct knowledge and a few easy actions.
Personal Tax: Defined Here
Personal tax is income tax paid personally on earnings. This includes:
- Salary
- Economic income
- Renting income
- Capital gains (from real estate, mutual funds, or stocks)
- Interest originating from fixed deposits and bank accounts
Who Has Personal Tax Payment Due?
- If your total income exceeds ₹2.5 lakh and you are under the age of 60, you must pay personal tax.
- You earn more than ₹3 lakh and lie between 60–80.
- You earn more than ₹5 lakh and are above eighty.
- You have foreign assets or income—even if you fall short of the limit.
Personal Tax Calculating Methodologies
- Count your whole income.
- Add income from salary, rent, interest, etc.
- Demand deductions.
- Employ Section 80C, 80D, 80G, and more deductions.
- Apply HRA and standard deduction as well if relevant.
- Check your taxable income.
- Reduce total income by subtracting deductions.
- Put the right tax slab on.
- Old or new government: select the one that reduces more taxes.
Taxes Slabs: Old Regime for FY 2024–25
| Income Range | Tax Rates |
| Up to ₹2.5 lakh | 0% |
| ₹2.5 lakh – ₹5 lakh | 5% |
| ₹5 lakh – ₹10 lakh | 20% |
| More than ₹10 lakh | 30% |
If income is less than ₹5 lakh (no tax due), Section 87A offers a rebate.
Online Personal Tax Payment Methodologies
Online using the income tax portal, paying taxes is simple.
Procedures:
- Visit https://www.incometax.gov.in
- Log on with your PAN and password.
- Click under “e-File” tab e-Pay Tax.
- Choose the appropriate form—advanced tax or self-assessment.
- Enter the total and pay using UPI, RTGS, debit card, or net banking.
- For your records, save the challan receipt.
Key Dates to Remember
- Last date to submit income tax returns (non-audit cases) is July 31.
- Advance tax due dates if relevant: June 15th, September 15th, December 15th, March 15th.
- Late submission could cause a penalty ranging from ₹1,000 to ₹5,000.
Advice on Better Managing Personal Taxes
- Plan taxes early in the financial year.
- Arrange all expense and investment proof ready.
- On-time filing your ITR will help you avoid
