![]() ![]() ![]() This is applicable if they do not have any business income.įrom FY 2023-24, a taxpayer having business income wanting to continue with the old tax regime in a financial year, will specifically have to opt for it. It is important to note that an individual or Hindu Undivided Family (HUF) has to choose between the old tax regime and the new tax regime every financial year. (2) for employer’s contribution to the employee’s NPS account. If individuals opt for the new tax regime, they can now claim only two deductions – Standard deduction of Rs 50,000 from salary/pension income and Section 80CCD The new tax regime has lower tax rates as compared with the old tax regime. Initially, it was optional tax regime, however, from April 1, 2023, it became a default option. For super senior citizens aged 80 years and above, the basic exemption limit is Rs 5 lakh.įrom FY 2020-21, a new, concessional tax regime was introduced. For senior citizens aged 60 years and above but below 80 years, the basic exemption limit is Rs 3 lakh. For individuals below 60 years of age, the basic income exemption limit is Rs 2.5 lakh. ![]() The old tax regime offered multiple basic income exemption limits depending on the age of the taxpayer. An individual can bring down the gross taxable income by claiming deductions under sections such as 80C, 80D, 80TTA, and 80TTB, and tax exemptions on house rent allowance, leave travel concession, etc. Till FY 2019-20 (ended on March 31, 2020), there was only one tax regime with four tax slabs and tax rates. A rebate under Section 87A is available under the old tax regime if taxable income does not exceed Rs 5 lakh. Also, no changes have been announced in the deductions and exemptions that are available under the old tax regime. The income tax slab and rates under the old tax regime remain unchanged for FY 2023-24 and FY 2024-25. No changes were made under the old tax regime for FY 2023-24 and FY 2024-25. Highest surcharge rate was reduced to 25% from 37% under the new tax regime. Thus, individuals whose taxable income does not exceed Rs 7 lakh will not have to pay any taxes if they opt for the new tax regime in current FY 2023-24. Rebate under Section 87A increased under the new tax regime for taxable incomes not exceeding Rs 7 lakh. Standard deduction of Rs 50,000 was introduced for salaried and pensioners under the new tax regime. Income tax slabs were revised under the new tax regime. However, they still can opt for the old tax regime. It is important to note that changes were announced in last year budget (Budget 2023) which are applicable on the current financial year 2023-24 (April 1, 2023-March 31, 2024).įor the financial year 2023-24, the changes announced in the new tax regime were as follows: The basic exemption limit hiked to Rs 3 lakh from Rs 2.5 lakh under the new income regime, new tax regime is now the default option for taxpayers. Hence, an individual will need to analyse between the old and new tax regime to lower their income tax liability. The income tax slabs and income tax rates will remain unchanged in the upcoming financial year 2024-25, starting from April 1, 2024. No changes have been announced by the finance minister Nirmala Sitharaman in the income tax slab rates in interim Budget 2024. Mutual Funds Spend Credit Cards P2P Data Center Fuel Rates Diesel Rates Petrol Rates Bank Pan Number Bank holidays Penny Stocks MF Ratings & NAV Top Performing Schemes Top Star Rated Schemes Top Tax Saving Schemes Highest Risk Adjusted Return New Fund Offers Forthcoming Dividends NPS Top Performing NPS Scheme Most Consistent NPS schemes ETF Perfomance Latest Prices Listed Bonds Traded in Cash Market ULIPs ULIP Schemes Calculators Recurring Deposit Calculator Fixed Deposit Calculator LTCG Tax Calculator Income Tax Calculator Rent Receipt Generator SIP Calculator IFSC Bank Code NPS Calculator Invoice Generator EPF Calculator House Property Income HRA Calculator Sukanya Samriddhi Calculator Education Loan Calculator Car Loan Calculator Home Loan Calculator Personal Loan Calculator Risk Tolerance Calculator Financial Fitness Calculator Interest Rates Recurring Deposit Rates Fixed Deposit Rates Bank Fixed Deposits Rates Post Office Schemes Rates MCLR Loan EMI Participate & Win Stocks & Shares ET Wealth ET Wealth Editions Buy Wealth Magazine ET Wealth Newsletter ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |