July 12, 2024

Income Tax: Exciting news! 6 major exemptions now available on filing ITR via old tax regime

The Indian government has recently announced that taxpayers filing their Income Tax Returns (ITR) via the old tax regime can avail themselves of six major exemptions. This is exciting news for those who still prefer the old tax system. The exemptions include the standard deduction of INR 50,000, Leave Travel Concession (LTC), House Rent Allowance (HRA), deductions under Section 80C, 80D, and 80G. Taxpayers can choose between the old and new tax regimes while filing ITR, depending on their preference. The government’s move is expected to benefit those who find the old tax system more suitable for their needs.

Income Tax Slab:

The new tax regime has some advantages, but no investment exemptions. However, standard deductions are included in the new tax regime. If you want an exemption for investments or other gains, you must file your taxes under the old tax system.

Income Tax Return: 

tax is saving
income tax

On February 1, Finance Minister Nirmala Sitharaman announced the federal budget, introducing changes to the income tax. He said the new tax regime introduced by the government will be the default option from the fiscal year 2023-2.
The new scheme exempts taxpayers with an annual income of up to 7 million rubles. A taxpayer with an annual income up to his Rs 7,000 can save up to Rs 33,800 in taxes after considering exemptions under the new personal income tax regime.

Income Tax

The new duty system has some advantages, but it doesn’t include investment immunity. still, the new duty system includes a standard deduction.However, you’ll have to pay your levies according to the old duty system, If you need an impunity or other deductions for investments. The old duty system has numerous exceptions. moment we will tell you about them.

Discounts Available under the Old Tax System:-

  1. Standard Deduction Rs 50,000 for salaried individualities.
  2. Section 80C( 1B) fresh deduction of over to Rs 50,000 for deposit in NPS account.
  3. Section 80TTA Provides a deduction for maximum Rs 10,000 on interest income from a savings regard with a bank, collaborative society or post office for an individual or HUF.
  4. Section 80D Allows deduction on health insurance decoration.
  5. Section 80G Donations made to eligible trusts and charitable institutions are eligible for deduction.
  6. Section 80C Investment in EPF and PPF, ELSS, life insurance decoration, home loan payment, SSY, NSC and SCSS give duty benefits.

Taxpayers should be apprehensive that if you’re an hand and don’t choose between the old duty governance and the new duty governance, you’ll be subject to TDS under the new duty governance. A indirect from the Central Direct Tax Council clarified thisissue.However, it’s presumed that the hand has decided for the standard duty governance and has not used the option to conclude out of the new duty governance, “ If an hand doesn’t give information.), Section 192 and Section 192, independently, withholding duty shall be subtracted from the income.

What in income tax:-

Income tax is a type of tax imposed on the earnings of individuals, companies, and other entities. It serves as a significant source of revenue for governments worldwide, with tax rates, exemptions, and deductions varying depending on the country and income bracket of taxpayers.

Most nations collect income tax annually, requiring individuals to file their tax returns by a specific deadline. Failure to pay taxes or submit returns can result in legal ramifications and penalties.

Governments utilize income tax to fund various public services such as education, healthcare, and infrastructure development. It also serves to reduce income inequality by redistributing wealth through tax credits, deductions, and exemptions.

It’s crucial for individuals and businesses to comprehend their tax obligations and capitalize on any available tax breaks or deductions. Consulting a tax expert or using tax software can help ensure that you abide by tax laws and maximize tax savings.

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