Income Tax Latest Update: There is important news for those who pay income tax. If you are also confused as to which tax regime you should choose… then there is no need to worry at all.
Finance Minister Nirmala Sitharaman has made major changes in the new tax regime in this budget, after which taxpayers are getting the benefit of huge rebate while paying taxes. Today we will tell you how you can take advantage of more exemption while paying tax and which tax regime is best for you.
Which tax regime to choose?
At this time, you have the option to choose the tax regime, whether you select the new tax regime or choose the old tax regime. In the new tax regime, you will get the benefit of exemption up to 7 lakhs. The new tax regime was launched by the government in the year 2020 and in this year’s budget, the Finance Minister has defaulted this tax system, after which you will have to be very careful while paying taxes.
These people will not have to pay tax in the new tax regime
Talking about the new tax regime, there will be no tax on income up to Rs 3 lakh. Along with this, those earning up to 7 lakhs will get the benefit of tax rebate, after which even those people will not have to pay tax. Along with this, the tax slab has also been reduced.
How many slabs are there in the new tax regime?
0 to ₹3 lakh = 0
₹3 lakh to ₹6 lakh = 5 per cent
₹6 lakh to ₹9 lakh = 10 per cent
₹9 lakh to ₹12 lakh = 15%
₹12 lakh to ₹15 lakh = 20 per cent
Above ₹15 lakh = 30%
Old tax regime Apart from this, if we talk about the old tax system, then those with income up to 2.5 lakh get the benefit of exemption. Apart from this, those with income between 2.5 to 5 lakh have to pay 5% tax, but these people also get the benefit of exemption of up to Rs 12,500. In this, you have to pay tax up to 5%, 20% and 30%. Let us tell you that in the old tax regime, you get the benefit of exemption under section 80C, in which you can save tax.
Tax slabs of old tax regime-
Old tax regime (for individual taxpayers below 60 years)
0 to ₹2.5 lakh = 0
₹2.5 lakh to ₹5 lakh = 5 per cent
₹5 lakh to ₹10 lakh = 20 per cent
Above ₹10 lakh = 30%
Find out how much tax will have to be paid from the tax calculator
If you also want to know where you will have to pay less tax while choosing the tax regime, then for this you can take the help of tax calculator. Let us tell you that the Income Tax Department has made the new tax regime the default, after which a calculator has also been released, so that taxpayers do not face any problem in calculation. With this, you can find out that in which tax regime, how much tax you will have to pay. Let us tell you that you will also find this calculator on the official website of Income Tax.