Income Tax Return Update: Before July 31, there has been news of work for lakhs of taxpayers. If you have not yet filed your Income Tax Return (ITR), do not worry. The government has exempted these taxpayers from tax. This time the government has given a lot of relief to the taxpayers in the budget. During the budget, Finance Minister Nirmala Sitharaman made several announcements for taxpayers. You can avoid paying tax next year according to these rules.
The government changed the tax rules
The new financial year has started from 1st April. The government has changed many rules related to tax for the new financial year. According to the rules, if you choose the new tax regime, then you can get many benefits. Your tax can be zero under the new rules. According to the new tax regime, no tax is to be paid on income up to Rs 7 lakh. If your annual income is Rs 7 lakh, then you do not have to pay any tax.
Can take advantage of standard deduction
On February 1, Finance Minister Nirmala Sitharaman had announced to give the benefit of standard deduction in the new income tax regime. Its purpose is to attract taxpayers towards the new tax regime. The government wants more and more taxpayers to use the new tax system instead of the old tax system. Now even in the new tax regime, salary class and pensioners will get the benefit of standard deduction of Rs 50,000.
Will get benefit here too
Employed people whose annual income is Rs 15.5 lakh or more will get a standard deduction of Rs 52,500 annually in the new tax regime. Earlier, no standard deduction was available in the new tax regime. Only people employed in the old tax regime used to get the benefit of standard deduction, but it will be available in the new tax regime as well.
Government increased leave encashment exemption
Private sector employees used to get Rs 3 lakh exemption under leave encashment but now it has been increased to Rs 25 lakh.