1) New income tax regime
Download Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E for the F.Y.2023-24 and A.Y.2024-25 | From 1 April 2023, the new income tax regime will operate as a tax default. Taxpayers will be able to choose between the following regimes. Salary and pensions: standard deduction of the new system for taxable income - more than 15.5 Lakh - 5200 Lakh. The government in Budget 2020-21 brought an additional income tax regime U/s 16(ia), under which individuals and Hindu undivided families (HUFs) will have to pay tax at lower rates. Specified deductions and exemptions, housing rent allowance (HRA), interest on housing loans, and investments made under sections 80C, 80D, and 80CCD.
Accordingly, all income up to 2.5 Lakh was tax-free.
2) The tax rate threshold increased to 7 Lakh
Increasing the tax rate limit from Rs 7 lakh to Rs 5 lakh means that a person with income below Rs 7 lakh need not deposit anything to claim exemptions and all income irrespective of quantum is tax-free. investments made by such a person.
3) Standard deduction
There is no change in the standarddeduction of Rs 50,000 given to employees under the old tax regime. For pensioners, the finance minister has announced an extension of the standard deduction benefit under the new tax regime. Every salaried person with an income of 15.5 million rubles or more will receive a benefit of Rs.5200/-.
4) Changes in income tax slabs
The new tax rates
0-3 Lakh is nil
3-6 Lakh - 5% discount.
6-9 Lakh - 10% discount.
9-12 Lakh - 15% discount.
12-15 Lakh - 20% discount.
Above 15 Lakh - 30%
5) LTA in that case
For non-government employees, leave is waived to a certain extent. This limit has been 3 Lakh since 2002 and has now been increased to 25 Lakh
6) Benefits for the elderly
The maximum deposit limit for elderly savings schemes will increase from 30 million rubles to 15 Lakh.
The maximum deposit limit for the monthly income scheme will be increased to Rs 9.5 Lakh, from Rs 4.5 Lakh for single accounts and from Rs 7.5 Lakh to Rs 15 Lakh for joint accounts.
