Let us tell you that the post office offers better interest rates than most banks, which along with these tax benefits is an attraction for customers seeking higher returns on their savings. Let us know how you can earn more along with income tax exemption by opening a Post Office Savings Account (POSA).

You can avail discount up to 10 thousand

The Post Office Savings Account (SB) works just like a normal bank savings account, with a minimum deposit amount of Rs 500 and a minimum withdrawal amount of Rs 50. There is no maximum investment limit and investors can enjoy tax exemption up to Rs 10,000. This account also offers an interest rate of 4% for the period April-June 2025.

Under the Income Tax Act, 1961, POSA provides tax exemption on interest income under section 10(15)(i), which is applicable under the new tax regime. This exemption allows a single account holder to claim a tax deduction of up to Rs 3,500 and a joint account holder up to Rs 7,000, which is over and above the normal tax deductions available for savings accounts.

Tax Deduction under Section 80TTA

Tax deductions under Section 80TTA allow general taxpayers to claim up to Rs 10,000 on interest income from savings accounts. This is applicable to accounts with banks, cooperative societies and post offices. For senior citizens, a higher deduction of up to Rs 50,000 is available under Section 80TTB. These deductions cover interest earned from savings accounts, fixed deposits and recurring deposits, providing significant relief to senior citizens compared to other taxpayers. However, these deductions are not applicable under the new tax regime.

Higher interest than banks

The interest rates offered by post office savings accounts are typically higher than those offered by banks, making them a better option for investors seeking better returns. This is especially important in the current economic environment, where savers look for safe and profitable options. The strategic position of POSAs, along with their competitive rates and tax benefits, makes them a better choice for many individuals.

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The post Post office Account: Open this account in the post office, you will get income tax exemption even in the new tax system first appeared on Rightsofemployees.com.

By investing in the savings scheme of the post office , you can get a tax exemption of up to Rs 1.5 lakh under section 80C of the Income Tax along with great returns. The current financial year is ending by March 31. Before this, you can invest and get tax exemption.

If you are planning to invest, then we are telling you about the 5 best savings schemes of the post office. However, it is important to note that the exemption of up to Rs 1.5 lakh per year under section 80C is available only under the old income tax system. Those who opt for the new income tax system do not get any exemption under section 80C.

Public Provident Fund (PPF)

PPF is a long-term investment option in India, which offers tax exemption under 80C. Investment can be started from Rs 500. You can get tax exemption under section 80C by investing up to Rs 1.5 lakh annually in PPF. The interest rate on PPF for the January-March 2025 quarter is 7.1%.

National Savings Certificate (NSC)

NSC is a safe investment option that offers tax exemption as well as assured returns. Investors can claim deductions for investments up to Rs 1.5 lakh annually. The scheme accepts investments starting from Rs 1,000 with no upper limit. For the January-March 2025 quarter, NSC offers 7.7% interest, which is compounded annually but payable on maturity.

Sukanya Samriddhi Yojana (SSY)

SSY is an investment scheme launched by the government for girls, which offers great returns along with tax exemptions. Investors can invest between Rs 250 and Rs 1.5 lakh, with investments up to Rs 1.5 lakh being eligible for Section 80C deduction. Both the interest earned and maturity proceeds remain tax-free. For the January-March 2025 quarter, SSY offers 8.2% interest, calculated with annual compounding.

Senior Citizen Savings Scheme (SCSS)

SCSS is a government-backed retirement savings scheme that offers tax exemption as well as better returns. You can invest in this scheme from a minimum of Rs 1,000 to a maximum of Rs 30 lakh. Investment up to Rs 1.5 lakh is eligible for tax exemption under Section 80C. The interest rate on SCSS for the January-March 2025 quarter is 8.2% per annum.

Post Office Time Deposit (POTD)

For the 5-year POTD plan, investments up to Rs 1.5 lakh are eligible for Section 80C deduction, though the interest remains taxable. One can invest in this scheme with a minimum investment of Rs 1,000. There is no maximum limit. The interest rate on Post Office Time Deposit (5 years) for the January-March 2025 quarter is 7.5% (interest is payable annually but calculated on a quarterly basis).

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The post Post Office’s Invest in THESE 5 scheme, get income tax exemption of Rs 1.5 lakh under 80C first appeared on Rightsofemployees.com.

Recent budget announcements have made FDs more attractive. The government has increased the TDS limit for bank FDs. It has been increased from Rs 40,000 to Rs 50,000 for general individuals and from Rs 50,000 to Rs 1 lakh for senior citizens. Let us know about the major benefits of investing in FDs…

Huge uncertainty in the market

Stable options in volatile markets These days, there is a lot of uncertainty in the market due to global political tensions and fluctuations in interest rates. Short-term volatility is keeping investors worried amid the possibility of long-term gains.

The market is not happy even with the income tax exemption and the reduction in repo rate. In such times, FD has emerged as a strong support. With assured returns unaffected by fluctuations, it provides peace of mind to risk-averse investors. FD is a better option for people looking for regular income.

Tax benefits with safety: FDs offer a perfect combination of savings and tax efficiency. Tax savers can avail a deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act through FDs, which have a lock-in period of five years.

Compared to other tax-saving instruments like ELSS (Equity Linked Se wing Schemes) and ULIPs (Unit Linked Insurance Plans), FDs are more attractive due to their simplicity and assured returns.

Overdraft facility: In emergency financial situations, FD provides an excellent solution to obtain the required funds while maintaining investments. Through the overdraft facility, banks provide a credit line by accepting the FD as a guarantee.

Customers can avail loans up to a certain percentage of the total amount of the FD. Interest is payable only on the amount utilised. Since the FD is guaranteed, banks usually offer loans at competitive interest rates.

Convenience: Along with security and returns, it is also a better option due to its simplicity and easy availability. Whether through a bank branch or online on a digital platform, opening an FD account is very simple. No special financial expertise is required to understand its terms and conditions. Features like auto-renewal, nomination and online tracking are also available with it, which make it a symbol of convenience as well as security.

Uttam Tebriwal, Deputy CEO, AU Small Finance Bank, says that while evaluating your investment options for tax planning this year, consider the long-term benefits of FDs. Whether your goal is to save for future expenses, avail tax benefits or just grow your savings steadily, FDs will continue to be a reliable companion in achieving your financial goals.

Smart investing not just means earning high returns but also ensuring peace of mind, and through FDs you can have both.

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In fact, the government has tried to give a boost to the economy by giving income tax exemption to the middle class, which is the savior of the country’s economy. According to the new announcement, in the coming financial year 2025-26, salaried people will not have to pay any tax on income up to Rs 12.75 lakh annually.

There is no tax on income up to Rs 12 lakh

Other people will not be taxed on annual income up to Rs 12 lakh. This facility has been provided under the new system of income tax. Under the new system, the tax slabs have also been changed, due to which those earning up to Rs 24.75 lakh annually will be able to save Rs 1.10 lakh as compared to the present.

Regarding the changes in the tax slabs, Central Board of Direct Taxes Chairman Ravi Agarwal has said that the announcement of no tax on annual income up to Rs 12 lakh and changes in all tax slabs in the Union Budget may motivate more than 90 percent of taxpayers to adopt the new tax system. Till now this figure is about 75 percent.

8 crore people filed ITR

According to the Finance Ministry, by increasing the tax exemption limit from seven lakhs to 12 lakhs, one crore tax payers will become tax-free. In the current financial year, till December, more than eight crore people had filed Income Tax Returns (ITR), but out of these, 4.9 crore people had shown their income as zero tax.
Tax payers should know these thingsThere is a wave of happiness among the middle class people after the budget presented on Saturday. Meanwhile, every taxpayer must know about these ten things after the budget.

• Slab rates have been simplified under the new tax regime, which continues to be the default regime.
• Tax exemption for those availing new tax regime increased from ₹25,000 to ₹60,000 (not applicable for NRIs)
• Taxpayers can now claim the annual value of two self-occupied properties as “nil” without any conditions.
• The limit for tax collection at source (TCS) on foreign remittances has been increased from ₹7 lakh to ₹10 lakh.
• TCS will not be applicable on remittances made for educational expenses. (Earlier 0.5% was applicable on remittances above 7 lakhs)
• The time limit for filing updated returns has been extended from the existing 24 months to 48 months, but this includes 16 additional months and 70% interest on the aggregate.
• The tax deduction for self-contribution to the National Pension System (under the old tax regime) of Rs 50,000 has also been extended to contributions made in the name of minors under the NPS Vatsalya Scheme.
• The limit of tax deduction (TDS) on interest income for senior citizens has been increased to Rs 1 lakh from the present Rs 50,000.
• Rent paid by non-individuals is liable for TDS. The limit for such TDS has been raised from Rs 2.4 lakh per annum to Rs 50,000 per month or part of a month.
• The limit of TDS on dividend income and income from mutual fund units has been increased from the existing Rs 5,000 to Rs 10,000.

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Under this, now no tax will have to be paid on taxable income up to Rs 12 lakh. Under the new tax system, there will be no tax on standard deduction of Rs 75,000. That is, salaried people will not have to pay any tax on taxable income up to Rs 12.75 lakh. Till now there is no tax on income up to Rs 7 lakh. After including the standard deduction, this amount becomes Rs 7.75 lakh.

In her speech, the Finance Minister said, ‘I am now happy to announce that there will be no income tax on income up to Rs 12 lakh. Now there will be zero tax on zero to four lakh rupees, 5% on 4 to 8 lakh rupees, 10% on eight to 12 lakh rupees, 15% on 12 to 16 lakh rupees, 20% on 16 to 20 lakh rupees, 25% on 20 to 24 lakh rupees and 30% tax on income above 24 lakh rupees. Tax exemption under section 87A is given under both the old and new tax regimes.

What do experts say

Manoranjan Sharma, Chief Economist of Infomerics Ratings, said that in the budget, the Finance Minister had announced tax exemption on income up to Rs 12 lakh. This was expected. The middle class is suffering from inflation and its disposable income was shrinking. The country’s GDP was showing sluggishness for the last few quarters. The biggest reason for this was that consumption was decreasing in urban areas. This is the reason why there was a demand for giving more income tax exemption to the middle class. With the increase in disposable income of the middle class, more money will come in their pockets and this will give a boost to the economy.

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The post IT Section 87A exemption: Center govt announced increase in income tax exemption under section 87A – Know all Details first appeared on Rightsofemployees.com.

However, the government has not taken any decision in this regard yet. The government can announce this in the budget to be presented on February 1.

The government can also give income tax exemption to the middle class. However, no decision has been taken in this regard yet. It is believed that the government can make an announcement in this regard in the general budget to be presented on February 1. This information has been given by Economic Times quoting Reuters. It has been told that the government can also give income tax exemption to those earning Rs 15 lakh annually.

The government wants to give tax relief to the middle class. The government plans to promote consumption due to the recession. Due to these reasons, the government is considering giving income tax exemption to the middle class earning up to Rs 15 lakh. If this happens, then millions of taxpayers will benefit from this.

How much will the deduction be?

No information has been revealed yet about how much income tax exemption will be given to those earning up to Rs 15 lakh annually. According to sources, no decision has been taken yet on the size of any deduction. Whatever decision will be taken in this regard will be announced in the general budget to be presented on February 1.

Now we have to pay a lot of tax

Currently, there are two systems to choose from for income tax. The first is the old one and the second is the new one. The new system started in the year 2020. There is no exemption on facilities like HRA in this. In the new system, 5 to 20 percent tax is levied on income from Rs 3 lakh to Rs 15 lakh annually. Income tax has to be paid at the rate of 30 percent on income more than this.

A good move for the economy too!

If the government cuts income tax for the middle class, then such people will get more money in their hands. This money can help in accelerating the country’s economy. In fact, the country’s GDP in the September quarter has been much lower than in the last 7 quarters. If people get more money in their hands, they will be able to spend more. This will improve the country’s economy.

Why favouritism towards the middle class?

The government is currently facing a lot of criticism from the middle class. The middle class is the worst hit by inflation. The middle class is not getting any special relief from the government. The increase in salary is decreasing as compared to inflation.

Due to inflation, the demand for everything from soap and shampoo to cars and two-wheelers has been low. The middle class is the biggest customer of these things. In such a situation, the government wants to please the middle class by giving income tax exemption.

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Everyone has to pay income tax. If you earn more than the prescribed limit, then you have to inform the government about it and pay tax. But, there is a state in India where there is no tax on income.

It is difficult to believe this but it is true. Actually, Sikkim is the only state in the country where citizens do not have to pay any tax. However, there is a special reason behind this.

Sikkim has the status of a special state in the country and gives its citizens complete tax exemption. This arrangement has been implemented under Article 371 (F) of the Indian Constitution and Section 10 (26AAA) of the Income Tax Act 1961.

When Sikkim joined the Indian Union in 1975, it was given the status of tax-free special status. The purpose of this special right was to strengthen the economic status of the state and provide financial freedom to the people here.

The special thing is that the tax exemption given to the citizens here is not limited only to income tax, but this discount is also applicable on interest and dividend received from shares and other items.

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At the same time, the Finance Minister has increased the long term capital gain tax and short term capital gain tax on all financial and non-financial assets. Now LTCG will be taxed at the rate of 12.5%. Additionally, the exemption limit for capital gains will be fixed at Rs 1.25 lakh per annum. At the same time, STCG will be taxed at the rate of 20 percent.

Finance Minister Nirmala Sitharaman has announced a better review of the Income Tax Act 1961. She said that this will reduce disputes and litigation, she said that it is proposed to complete it in 6 months.

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New Tax Slab in Budget 2024-25

• 0-3 lakh rupees: 0
• Rs 3-7 lakh: 5%
• 7-10 lakhs: 10%
• Rs 10-12 lakh: 15%
• Rs 12-15 lakh: 20%
• Above Rs.15 lakh: 30%

The post Income Tax Slab: Standard deduction increased from Rs 50,000 to Rs 75,000- check details first appeared on Rightsofemployees.com.

Like every time, in this budget too, the eyes of taxpayers and working people will be on the changes in the income tax slab, increase in standard deduction and more relief in housing loan interest and section 80C. However, where and how much relief will Finance Minister Nirmala Sitharaman give. It will be clear after 11 o’clock. It is expected that the government can make taxpayers happy by changing the income tax slab, as well as increase the standard deduction.

Increase in income tax limit possible: There is a possibility that under the new tax system, the basic exemption limit can be increased from Rs 3 lakh to Rs 5 lakh. This decision will provide great relief to low-income group taxpayers.

Changes in the new tax regime: The government can make further changes in the new tax system to make it more attractive. This can include adjustments in the tax slabs or additional deductions.

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Increase in standard deduction: In order to provide great relief to the working class, the government can increase the standard deduction limit. Currently, this limit is Rs 50,000, which is expected to be increased to Rs 1 lakh.

Section 80c limit will increase: In the old tax regime, taxpayers get a rebate of up to Rs 1.50 lakh under section 80c. It is believed that in the budget, this tax rebate can be increased from Rs 1.5 lakh to Rs 2 lakh.

Increase in standard deduction: In order to provide great relief to the working class, the government can increase the standard deduction limit. Currently, this limit is Rs 50,000, which is expected to be increased to Rs 1 lakh.

Section 80c limit will increase: In the old tax regime, taxpayers get a rebate of up to Rs 1.50 lakh under section 80c. It is believed that in the budget, this tax rebate can be increased from Rs 1.5 lakh to Rs 2 lakh.

Stocks under Rs 10 that give strong returns
Stocks under Rs 10 that give strong returnsSee ahead…

More tax exemption on home loan interest: Under Section 24(b) of the Income Tax Act, tax exemption can be claimed on interest up to Rs 2 lakh on home loan. However, there is a demand to increase this deduction to Rs 4 lakh. At the same time, some real estate experts have demanded to increase this limit to Rs 5 lakh. This will improve the property market as well as the common man.

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The government had also implemented a new regime to save tax. But, the problem in the new regime is that there is no tax exemption on any investment. As soon as your salary goes above 7.5 lakhs, tax starts getting deducted. We are telling you such a method, where your salary up to 10 lakhs will be completely tax free even in the new regime.

Let us tell you that in the new regime, tax exemption is still available for some things. If you have taken any allowance for travel, transport and office work, then tax exemption can be claimed on that too. We will tell you about one such allowance, by adopting which tax can be saved. Private companies give such allowances to their employees and tax can be easily claimed on it.

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How to get tax exemption:

In the income tax law, the allowance received for office expenses is kept out of the scope of tax. This includes fuel and mobile, broadband allowances. After the work from home ends, companies may not give broadband allowance, but they give fuel allowance for commuting to and from the office. If you have a car or bike, then this type of allowance can be claimed.

What you have to do:

In most private and MNC companies, a part of the salary of the employees is also for fuel reimbursement. You can talk to your HR about this. If your company also has such a policy, then your HR will revise the salary and can put a big part of it in fuel allowance. You will get tax exemption on this entire amount and if any TDS is being deducted by the company, then that deduction will stop.

How much discount can be given

? Every company has its own rules and limits. But, on an average, employees who travel by car get up to Rs 20,000 as fuel expenses. This amount becomes Rs 2.40 lakh in a year. Now if your cash in hand salary is around Rs 10 lakh, then after deducting this amount from it, your salary comes down to Rs 7.5 lakh. As soon as this happens, you become out of the scope of income tax under the new tax regime.

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A senior officer of the Income Tax Department said that there will be no increase in tax exemption under the new tax regime in the interim budget 2024. Announcements regarding the budget will be made on 1 February. Earlier, it was being said in some media reports that for taxpayers in the new tax regime, the limit of personal income tax rebate in vote-on-account can be increased from the current Rs 7 lakh to Rs 7.5 lakh.

No rebate plan in income tax exemption

An Income Tax Department official told Moneycontrol on the condition of anonymity that there is no plan to give rebate in income tax exemption. Last year, Finance Minister Nirmala Sitharaman had increased the income tax rebate limit for taxpayers from Rs 5 lakh to Rs 7 lakh under the new tax regime. The basic exemption limit was increased to Rs 3 lakh from the earlier Rs 2.5 lakh. The central government also started a deduction of Rs 15,000 for family pension.

Benefit of standard deduction of Rs 50000:

Standard deduction was introduced under the new tax regime for salaried class, pensioners and family pensioners in the budget of 2023. In the old tax regime, salaried class and pensioners are also given the benefit of standard deduction of Rs 50,000. Another official said that it is also expected that in the interim budget, the Center may announce TDS exemption on foreign credit and debit card spends up to Rs 7 lakh every financial year.

The new tax regime was introduced with a concessional rate by changing the tax slab as compared to earlier. It was applicable to all taxpayers including Hindu Undivided Families (HUF) and Union of Persons (NOP). In Budget 2023, personal income tax rules were simplified and income tax slabs were reduced from 7 to six. Let us know about the income tax levied under the new tax regime-

> There will be no tax on income up to Rs 3 lakh.
> 5% tax up to income of more than Rs 3 lakh – Rs 6 lakh.
> Above Rs 6 lakh and up to Rs 9 lakh it is 10 percent.
> From Rs 9 lakh to more than Rs 12 lakh, this tax is 15 percent.
> 20 percent tax on income between Rs 12 lakh to Rs 15 lakh.
> 30 percent tax on annual income above Rs 15 lakh

It has been made clear by the government that those who choose the new tax regime. They will not be able to avail various types of exemptions and deductions including HRA, LTA, 80C, 80D. Currently, different types of exemptions are available under the old tax regime.

The post Income Tax Limit: There will be no change in income tax slab in the budget, check details first appeared on Rightsofemployees.com.

Budget 2024: The Government of India will provide relief to employed people in the budget. The current government of Prime Minister Narendra Modi will present its final budget on February 1. This will also be the last budget of Finance Minister Nirmala Sitharaman because after this Lok Sabha elections are going to be held in the country in April. After that the Finance Minister of the new government will present the full budget. The question is whether the government will make big announcements for the salary class in the interim budget to be presented on 1 February 2024?

In the interim budget of 2019, exemption was given on savings of Rs 5 lakh.

In the interim budget of 2019, Piyush Goyal had announced tax exemptions for taxpayers with annual income up to Rs 5 lakh. He had also said that by taking full advantage of deductions and exemptions, the tax liability would be zero even on an annual income of Rs 6.5 lakh. He had also announced to increase the standard limit by 25 percent. Standard deduction was increased from Rs 40,000 to Rs 50,000. Taxpayers benefited greatly from both these announcements. Especially the common working people got great relief.

Will this limit now increase from Rs 7 lakh to Rs 10 lakh?

Currently, taxpayers get tax exemptions on annual income up to Rs 7 lakh. This time in the budget, working people are expecting this limit to increase. Salary Class is expecting this limit to increase from Rs 7 lakh to Rs 10 lakh in the budget. So that, they can save more money in times of inflation.

Will the Finance Minister make big announcements in the interim budget?

The government avoids making big announcements in the interim budget. But, looking at the budget presented in 2019, it does not seem so. Then Union Minister Piyush Goyal presented the interim budget on 1 February 2019, when he made many big announcements in that budget. He gave huge relief to the taxpayers in income tax. It was believed that these announcements were made in view of the Lok Sabha elections to be held after two months. This time also Lok Sabha elections are going to be held in April-May. In such a situation, the Finance Minister can make big announcements.

Budget will be presented on 1 February 2024

Finance Minister Nirmala Sitharaman will present the Interim Budget on February 1, 2024. He has made it clear that there will be no big announcements in this budget. He has said that big announcements will have to wait till next year’s full budget. The full budget will come in July. Lok Sabha elections are going to be held in April-May 2024. After this, the new government formed at the Center will present the full budget.

The post Budget 2024: Government can give big relief to common people, will salary up to Rs 10 lakh be tax free? first appeared on Rightsofemployees.com.

These schemes are for all categories of people, which provide many benefits ranging from tax benefits to guaranteed returns. More and more people like to invest in these savings schemes. It has many benefits, let us know the benefits of Small Saving Scheme.

1. Guaranteed Returns

Small savings schemes include Public Provident Fund i.e. PPF, Senior Citizen Savings Scheme, Sukanya Samriddhi Yojana etc. All these small saving schemes give guaranteed returns. In this you know that you are going to get this much amount in this time.

2. Financial Independence and Stability

If you have invested in small savings schemes, then it has so much potential that it gives financial independence and stability to yourself and your family. Small savings schemes serve as the foundation of secure, regular income and a strong financial strategy.

3. Income tax exemption

Many small savings schemes provide the benefit of tax exemption. Under Section 80C of Income Tax, you can save up to Rs 1.5 lakh. Schemes like PPF, Senior Citizen Saving Scheme, Time Deposit and FD provide the benefit of tax exemption.

4. Minimum investment

Investors will have to make minimum investment. Depending on the small savings schemes, the amount can range from ₹250 to ₹1,000. You can also invest small amounts in these schemes.

5. Income assurance

In today’s time, people are investing in risky places like share market and mutual funds. Whereas small saving schemes provide assurance of income. With a fixed interest, you know in advance how much amount you will get on maturity. Meaning you will be guaranteed to get income in the future.

The post Govt Scheme: Many benefits are available on government savings schemes, see the complete list first appeared on Rightsofemployees.com.

The Income Tax Department has tightened its noose on salaried taxpayers who have resorted to fake documents for higher tax deductions and refunds. These include fake house rent receipts taken from close relatives, additional claims for home loans and fake donation papers. The department has started investigation against these taxpayers after finding discrepancies in the returns and has sought answers by sending notices.

It is being told that the Income Tax Department has asked these taxpayers to provide documents as proof for claiming tax exemption. Not only this, the department has also asked taxpayers to disclose the name, address and contact number of the chartered accountant or tax expert preparing and filing the ITR.

Data matching with the help of technology: According to tax experts, this time the Income Tax Department is sorting the returns filed with the help of Artificial Intelligence (AI) technology and data collected from various sources (Big Data). Taxpayers often use fake rent receipts to get more tax exemption, but if the landlord has not given details of the rent amount in his return, AI is catching it immediately. Earlier this work used to take time. Taxpayer thinks who will investigate the claims of small amount, so they file bogus claims.

Notice was issued to eight thousand: Along with this, the department has also started investigating the claims of donation. Under this, the figures given by the charitable institutions in their returns are being matched with the details of the donor. It may be noted that in April this year, the department had issued notices to about 8,000 tax evaders in the name of charity. Companies, traders, salaried people and people running businesses were also among those who received the notices.

Get help from AIS

The Annuity Information Report (AIS) facility has recently been launched by the Income Tax Department. It contains details of tax payments and transactions made during the relevant financial year. Apart from the total tax paid, annual income, rent received, bank balance, cash deposited, cash withdrawn, credit and debit card transactions, dividends, interest earned on savings account, purchase and sale of shares and mutual funds, foreign travel, purchase and sale of property, long-term profits, refunds, 46 types of information are included. This can be accessed from the Income Tax Department’s website and matched with the figures given in the return.

Must disclose this in ITR

1. Provide information on children’s accounts

2. Details of interest received in savings account
3. Profit from any investment plan

4. Income from any other interest
5. Information on investments made abroad

Category wise last date for filing ITR
1. July 31 for salaried and other individual and small taxpayers

2. October 31 for traders whose accounts need to be audited
3. November 30 for businesses with international or domestic transactions

4. December 31 to file Revised ITR

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There is great news for the people who pay Income Tax. If you also pay income tax, then now you have got a big relief from the Central Government. This time an important decision has been taken by the Modi Government, after which no tax will be levied on the income of crores of taxpayers of the country. Finance Minister Nirmala Sitharaman had made a special announcement about this in Budget 2023. Let us tell you that now which people have got freedom from paying tax.

Was announced in the budget

In February, the Modi government had presented the budget, in which the Finance Minister had announced that people filing taxes under the new tax regime are now getting relief from paying taxes. The government had decided to increase the income tax exemption to Rs 7 lakh in the new tax regime. That is, now people with income up to 7 lakhs will not have to file tax.

Earlier the limit was 5 lakhs, let us tell you that the government had told that from now on, if anyone files tax under the new tax regime, he will not have to pay tax on income up to Rs 7 lakhs. Earlier this limit was Rs 5 lakh, which was increased to Rs 7 lakh in February. People with higher salary have benefited from the increase in tax exemption.

Apart from this, you will also get the benefit of standard

deduction in the new tax regime. Salaried and pensioners now file tax under the new tax regime, then they will get an additional benefit of Rs 50,000. In such a situation, after earning seven lakh rupees annually in the new tax regime, a rebate of 50 thousand rupees will also be available under the standard deduction.

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There is great news for the people who pay Income Tax. If you also pay income tax, then now you have got a big relief from the Central Government. This time an important decision has been taken by the Modi Government, after which no tax will be levied on the income of crores of taxpayers of the country. Finance Minister Nirmala Sitharaman had made a special announcement about this in Budget 2023. Let us tell you that now which people have got freedom from paying tax.

Was announced in the budget

In February, the Modi government had presented the budget, in which the Finance Minister had announced that people filing taxes under the new tax regime are now getting relief from paying taxes. The government had decided to increase the income tax exemption to Rs 7 lakh in the new tax regime. That is, now people with income up to 7 lakhs will not have to file tax.

Earlier the limit was 5 lakhs, let us tell you that the government had told that from now on, if anyone files tax under the new tax regime, he will not have to pay tax on income up to Rs 7 lakhs. Earlier this limit was Rs 5 lakh, which was increased to Rs 7 lakh in February. People with higher salary have benefited from the increase in tax exemption.

Apart from this, you will also get the benefit of standard

deduction in the new tax regime. Salaried and pensioners now file tax under the new tax regime, then they will get an additional benefit of Rs 50,000. In such a situation, after earning seven lakh rupees annually in the new tax regime, a rebate of 50 thousand rupees will also be available under the standard deduction.

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At the same time, many changes have also been made regarding income tax from this financial year, the effect of which is going to be visible on the people. At the same time, a lot of relief has also been given by the government to the general public in the matter of tax.

Income Tax

At present, ITR has to be filed in the country according to the New Tax Regime and Old Tax Regime. There are different tax slabs in both the tax regimes. At the same time, a lot of tax relief was also provided to the people in the new tax regime. People are also going to get a lot of benefit from this. People have been given exemption from the government in tax filing.

Income tax exemption

In fact, while presenting Budget 2023, it was announced by Finance Minister Nirmala Sitharaman that if a person’s annual income is up to Rs 7 lakh, then he will not have to pay tax on filing income tax under the new tax regime, that is, his tax Will get discount. Also, under the new tax regime, now there will be zero tax on income up to Rs 3 lakh annually.

New tax regime

0 tax on income up to Rs 3 lakh per annum
5% tax on income up to Rs 3-6 lakh per annum
10% tax on income up to Rs 6-9 lakh per annum
15% tax on income up to Rs 9-12 lakh annually
20 tax on income up to Rs 12-15 lakh annually
30% tax on income above Rs 15 lakh per annum

Old tax regime

Apart from this, if a person files income tax return under the old tax regime, then no changes have been made there. People will have to pay zero tax on annual income of Rs 2.5 lakh. At the same time, people will get tax exemption up to an annual income of Rs 5 lakh.

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If you are preparing to file ITR, then we have important information for you . Do you know that it is very much needed while filing ITR . For this in ITR filing under Section 80EEA, you can take the benefit of deduction up to 1.50 lakhs.

Let us try to understand what are its rules and what are the points where you can get benefits under it.

Whether deduction under section 80EEA is available only for the year the property was purchased or till the time we pay the interest? (Is it available during the entire tenure of the loan)

Section 80EEA was introduced in the 2019 budget, with a provision for deduction of up to 1.50 lakhs. In this a person can claim interest on home loan subject to certain conditions, but there is a condition. Actually, this deduction is available to you if your home loan was sanctioned during the period from 1 April 2019 to 31 March 2022 and the condition is that the stamp duty of the house purchased does not exceed Rs 45 lakh.

You should not have any other house either. The loan should have been taken from a bank or housing finance company.

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This clearly means that the deduction is available on the date of sanction of the home loan and not on the date of its repayment. The date of purchase or completion of construction of the house property is also irrelevant.

You can claim this deduction during the construction period, if you had claimed the deduction of interest on home loan under section 24 in the under-construction category. In this case this deduction is available for the entire tenure of the home loan. You can claim it as long as you are repaying the home loan.

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Sikkim was merged with India on the condition that its old laws and special status would remain intact. Because of which the state followed its own Sikkim Income Tax Manual 1948, which had been governing the tax laws since 1975. Under this rule, no resident of Sikkim had to pay tax to the Centre.

Exemption to 94 percent people

In the year 2008, the tax laws of Sikkim were cancelled. The residents of the state were exempted from tax by adding Section 10 (26AAA) in the Union Budget of that year. A clause in the Act protected the special status accorded to Sikkim and “Sikkim” was added as per Article 371(f).

In 2008, the central government gave income tax exemption to more than 94 percent of Sikkimese people, but left out 500 families. Who refused to give up his Indian citizenship. Under Section 10 (26AAA), the people of Sikkim were exempted from income earned in the state or by way of dividend or interest on securities.

PAN card is also not required

Apart from this, the market regulator SEBI also exempted the residents of Sikkim from the mandatory PAN requirement for investing in the Indian securities market and mutual funds. Meanwhile, the Supreme Court of India held that the benefit of tax exemption provided in Section 10(26AAA) would be extended to all Sikkimese, including those permanently settled in the state prior to Sikkim’s merger with India.

The Supreme Court gave the decision

Prior to the SC ruling, the income tax exemption did not cover Sikkimese Sikkimese Indians who had permanently settled in the state prior to 1975, when Sikkim merged with India. The Supreme Court’s decision was in response to a petition filed by the Association of Old Settlers of Sikkim (AOSS) in 2013, seeking to exclude from IT exemption those who were not Sikkimese by origin, but migrated after their merger with India or Then they were living there before merging with India.

This rule is for these people

The court directed the state to incorporate a clause section 10 (26AAA) to extend income tax exemption to all Indian citizens residing in Sikkim on or before April 26, 1975. Further, the apex court has excluded a Sikkimese woman who married a non-Sikkimese man after April 1, 2008, from the exempted category under Articles 14, 15 and 21 of the Constitution of India.

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Sikkim income tax exemption: A few days ago Finance Minister Nirmala Sitharaman presented the budget for the financial year 2023-24. It was told in that speech that there will be no tax on income up to Rs 7 lakh. Many people were happy after this announcement, but do you know there is a state like this in India.

Where not even a single rupee is collected from the public as income tax. Yes, yes you are reading right. Even if the income of the people of that state is in crores of rupees, then the Income Tax Department does not collect even a single rupee from them. Let us know why this rule has been made in Sikkim?

Why was this exemption given?

For this, you have to know about the history of India because in the year 1950, India had made a peace agreement with Sikkim. Under him, Sikkim came under the protection of India. Then in the time of 1975 it was completely merged. Chogyal rule was going on in Sikkim. He issued the Sikkim Income Tax Manual in 1948 and when it merged with India, there was a condition that Sikkimese people would be exempted from income tax. Let us tell you that under Section 10 (26AAA) of the Income Tax Act, exemption is given to the native residents of Sikkim.

Native residents get discount

This exemption has been given to the original residents of Sikkim under the Income Tax Act. Let us tell you that the Supreme Court had given a decision in this matter. Since then, about 95% of the people of Sikkim take advantage of this exemption. Earlier this exemption was given only to those having Sikkim subject certificate.

Article 371a

Let us tell you that all the states of the Northeast have been given special status under Article 371A. For this reason, people from other parts of the country cannot buy property or land here. Residents of Sikkim are exempted from income tax under Section 10 (26AAA) of the Income Tax Act, 1961.

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The government can adopt some different methods to provide relief to the middle class people from inflation. For this, experts are also expressing the hope that these 5 announcements will be made in the budget. Maximum income tax comes from the salaried class only. In such a situation, even if the Finance Minister announces an increase in the tax limit, it will not be surprising. Apart from this, the standard deduction is also expected to increase.

Tax limit will increase

Inflation is increasing day by day. In such a situation, the cost of living is also increasing. In such a situation, the government can give income tax exemption of five lakh rupees to income tax payers under the new tax system. At present, 5% tax has to be paid on income of Rs 2.5 to Rs 5 lakh and 20% tax on income of Rs 5 to 7.5 lakh.

Standard deduction will change

The salaried class can avail exemption of Rs 50,000 under standard deduction every year. It is believed that the government can make changes in section 16 (ia) of income tax. It is expected that the limit of this standard deduction can be increased from Rs 50,000 to Rs 75,000.

Exemption will be available in 80C

Under Section 80C of the Income Tax Act, taxpayers can get tax exemption by investing an amount of Rs 1.5 lakh. Taxpayers have been demanding to increase this limit for a long time. If the government takes a decision on this matter in this budget, then taxpayers are going to get a big relief. This investment can be done in EPF, PPF, ELSS, NSC, NPS, Bank FD.

Invest for retirement

Employed people always invest in retirement plans. In such a situation, the government can increase the limit of tax exemption in this also. Experts are of the opinion that the government can increase this limit to one lakh rupees under section 80CCD (1B) of the Income Tax Act.

Health Insurance

At present, there is a rebate of Rs 25 thousand under the health insurance claim. It is expected that in this budget the government will increase it to 50 thousand rupees and for the elderly it can be increased from 50 thousand to 75 thousand rupees.

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This scheme can be easily opened in the form of a savings account in the name of the girl child in the post office and specified private or public banks. The interest rates of Sukanya Samriddhi Yojana are declared quarterly.

Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana can be opened in the name of a girl child below 10 years of age. Presently the scheme is providing 7.6% interest on deposits. Sukanya Samriddhi Yojana was launched as part of the ‘Beti Bachao Beti Badhao’ campaign of the Government of India. Investment plan can be opened in the name of a girl child to help her guardian in meeting the financial needs including education and marriage.

Investment Amount

This scheme is currently offering an interest rate of 7.6 per cent per annum. A person planning to invest in Sukanya Samriddhi Yojana can start the scheme any time after the birth of the girl child till the age of 10 years with a minimum deposit of Rs.250. At the same time, in this scheme, an amount of up to Rs 1,50,000 can be deposited in a financial year.

Income Tax Exemption

On the other hand, if you are looking for any tax exempt scheme, then know the updates regarding Sukanya Samriddhi Yojana as well. You can also invest in this scheme for tax exemption. Through this scheme, people can take advantage of tax exemption under section 80C of the Income Tax Act.

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There is a big opportunity for the government to make it populist. It is expected that many big announcements regarding income tax can be made in this budget. Sharekhan has released a report before the budget. In this, what are the expectations regarding personal income tax, it has been mentioned. The report believes that the government’s emphasis in the budget will be on capital expenditure, so that the economy gets a boost. There is little hope for policy reform.

Tax relief expected due to these 3 factors

Sharekhan said in his report that there are three major reasons for the change in income tax. Inflation is still intact and the fear of recession is increasing. The condition of the global economy is worse. Apart from this, there is an atmosphere of retrenchment all around.

In such a situation, the job market is weak. The burden of EMI on employed people is increasing separately. In such a situation, if the government gives relief to the income tax payers, then money will be saved in the hands of the people and consumption will improve. This will give a boost to growth.

What 5 major changes are expected in Income Tax?

1. At present, tax is not levied up to Rs 2.5 lakh. There is a demand to increase this limit to 5 lakhs.

2. From 2.5 lakhs to 5 lakhs, now 5% tax is levied. Under the old tax system, a rebate of Rs 125,000 is available. There is no rebate in the new tax system. There is a demand from the Finance Minister that 5 percent tax should be implemented from 5 lakh to 10 lakh.

3. At present, income up to 5-10 lakhs is taxed at 20% under the old tax system. There is a demand from the Finance Minister that its threshold limit should be increased to 10-20 lakhs and 20% tax should be imposed on this income.

4. At present, income above 10 lakhs is taxed at 30% under the old tax system. There is a demand from the government that the maximum tax rate should be reduced from 30 percent to 25 percent. At present, net tax on 30 per cent tax is 35.6 per cent including surcharge and cess.

5. The fifth demand is that at present the threshold limit for 30 per cent tax is Rs 10 lakh. be increased to 20 lakhs. Meaning, maximum tax rate should be implemented after Rs 20 lakh.

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Talking about the New Tax Regime, the tax rate in this is the same for people of all ages.  Income Tax in India is collected through the Income Tax Department. Those whose income is more than a certain limit, they have to pay income tax every year. Two tax regimes have been fixed by the government in the country.

They also have different advantages. At the same time, the Union Budget (Budget 2023) is also to be presented by the Central Government in the coming few weeks. This time in the budget, people have expectations of a big announcement on income tax as well. However, even before the budget, it is very important for some people to know one important thing.

Tax Slab Different slabs of income tax have been fixed in the country. In these, different tax rates are fixed on income in New Tax Regime, whereas in Old Tax Regime, different tax rates are fixed on income. Talking about the New Tax Regime, the tax rate in this is the same for people of all ages. Although there is a slight change in the tax rates according to the age in the Old Tax Regime.

New Tax Regime In New Tax Regime, Hindu Undivided Family, persons up to 60 years of age, senior citizens between 60 years to 80 years of age and very senior citizens above 80 years of age will have to pay tax at the same rate. Any increase in the basic exemption limit in the new tax regime will not benefit senior and very senior citizens. On the other hand, in the New Tax Regime, tax is waived up to Rs 2.5 lakh annually.

Old Tax Regime

However, tax exemption can be availed according to age in Old Tax Regime. For the financial year 2020-21, if a person below 60 years of age pays tax according to the Old Tax Regime, then his annual tax up to Rs 2.5 lakh is waived. After this, 5% tax is levied on 2.5 to 5 lakh rupees annually.

Their tax up to three lakh rupees is waived , while according to the Old Tax Regime for the financial year 2020-21, senior citizens, whose age is more than 60 years but less than 80 years, they will have to pay three lakh rupees annually in income tax.

Discount up to. This means that if a person, whose age is between 60 years to 80 years and he files income tax according to Old Tax Regime, then he will not have to pay any tax on income up to Rs 3 lakh annually. Their tax is waived on income up to three lakh rupees annually. At the same time, after this, they will have to pay 5% tax on income ranging from Rs 3 lakh to Rs 5 lakh annually.

Their tax up to five lakh rupees is waived , while super senior citizens whose age is more than 80 years, if they file tax according to Old Tax Regime, then they do not have to file tax on income up to five lakh rupees annually. Will happen. However, they will have to pay tax at the rate of 20 per cent on income between Rs 5 lakh and Rs 10 lakh.

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Earlier, the demands of all business associations and experts have also come before the Finance Minister. The Terrapanth Professional Forum has presented its suggestions regarding the budget to the Ministry. In such a situation, the government is expected to increase the tax limit.

TPF has demanded from Minister of State for Finance Pankaj Chaudhary that income up to five lakh rupees should be kept out of the tax limit. Along with this, suggestions have also been given regarding export promotion and GST. At the same time, it has also been demanded that the limit of tax exemption and investment of some schemes should be increased, which includes savings schemes like PPF.

TPF’s suggestions regarding the budget

TPF’s national president Pankaj Oswal said that suggestions have been made to improve the economy of the society and the country. TPF has demanded that exemption should be given in the tax slab up to Rs 5 lakh, that is, no tax should be charged on income up to Rs 5 lakh. Along with this, the standard deduction should be increased from Rs 50 thousand to Rs 1 lakh.

Demand for increasing the limit of PPF

TPF National President Pankaj Oswal has said that the limit of PPF should be increased from Rs 1.5 lakh to Rs 3 lakh per annum. Along with this, there has been a demand to increase the tax exemption of Rs 1.5 lakh to Rs 3 lakh under Section 80C of Income Tax. If the government does this, then common citizens can get huge benefits.

Expectation of exemption under Section 80TTA of Income Tax It is also expected to increase the exemption under Section 80TTA of Income Tax. Taxpayers are demanding that the tax exemption of Rs 10,000 under section 80TTA be increased to Rs 50,000. At the same time, common citizens are also expected to get exemption on things like children’s education and health insurance. Let us inform that the report given by TPF to the Ministry of Finance has been welcomed.

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In which a memorandum has been handed over to Minister of State for Finance Pankaj Chowdhary, saying that a rebate of Rs 5 lakh should be given in income tax. Apart from this, the standard deduction should also be increased to Rs 1 lakh. There has been a demand from their side that the maximum investment limit in PPF should also be increased to Rs 3 lakh. More than 7000 Engineers, Doctors and Chartered Accountants are associated with Terapanth Professional Forum.

Standard deduction will increase to Rs 1 lakh!

TPF National President Pankaj Oswal has told that the demand to increase the standard deduction to Rs 1 lakh has been made by us. Let us tell you that at present this deduction is only 50 thousand rupees. If the government accepts this demand in the budget, then you can get tax relief. Standard deduction is the amount that is deducted directly from your salary. That is, if your annual income is 10 lakh rupees, then according to the existing rules, the government will consider your income as 9 lakh 50 thousand rupees. On the other hand, if this deduction is increased to Rs 1 lakh, then according to the new rules, the Income Tax Department will consider the income of Rs 10 lakh as Rs 9 lakh.

Will be able to invest more in PPF

There is no change in PPF till now. However, TPF has now demanded that the maximum investment limit in PPF be increased. Let us tell you that at present only Rs 1 lakh 50 thousand can be invested in PPF account in a financial year. TPF has demanded that it should be increased to Rs 3 lakh. Whatever amount is invested in PPF, it is exempted under Section 80C of the Income Tax Department Act. In this way, if the amount of investment is increased to Rs 3 lakh in this budget, then taxpayers will be happy because the entire amount becomes tax free on investing in this scheme.

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On the other hand, many important announcements were made by the Modi government in the last budget, regarding which the government has given information about the further progress of those announcements. Under this, tax relief has also been given to many people.

Income tax In fact, in the budget 2021-22, some provisions were made regarding tax and NRIs and relief was also provided to NRIs. Giving information about this, a tweet has also been done on behalf of PIB and information has been given about further progress.

एनआरआई को टैक्स में राहत!

आयकर अधिनियम, 1961 की धारा 89ए एनआरआई करदाताओं को सेवानिवृत्ति लाभ खातों से उनकी आय के संदर्भ में राहत प्रदान करती है। नियम 21AAA अधिसूचित। अधिसूचित देश कनाडा, यूनाइटेड किंगडम और संयुक्त राज्य अमेरिका हैं।#UnionBudget #PromisesDelivered@nsitharaman pic.twitter.com/KU7v0JnX12

— PIB in Uttar Pradesh (@PibLucknow) January 5, 2023

Tax exemption

PIB in Uttar Pradesh tweeted, ‘Tax relief for NRIs! Section 89A of the Income Tax Act, 1961 provides relief to NRI taxpayers in respect of their income from retirement benefit accounts. Rule 21AAA notified. Notified countries are Canada, the United Kingdom and the United States. This tweet has also been retweeted through Income Tax India.

वरिष्ठ नागरिकों के लिए राहत!

आयकर अधिनियम, 1961 में धारा 194पी शामिल की गई, जो 75 वर्ष से अधिक आयु के उन वरिष्ठ नागरिकों को आईटीआर दाखिल करने से छूट देती है, जिनके पास केवल पेंशन और ब्याज से अर्जित आय है। निर्दिष्ट बैंकों और प्रासंगिक प्रपत्रों को अधिसूचित किया गया।#UnionBudget pic.twitter.com/baWHIJJEZu

— PIB in Uttar Pradesh (@PibLucknow) January 5, 2023

Along with giving relief to income tax return

NRIs, relief has also been given to senior citizens. Giving information in another tweet, PIB in Uttar Pradesh said, ‘Relief for senior citizens! Section 194P was inserted in the Income Tax Act, 1961, which exempts senior citizens above 75 years of age from filing ITR, who have only pension and interest earned income. Designated banks and relevant forms notified.

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If you want to create a retirement corpus for pension, then National Pension System (NPS) can be the best option for this. The government runs a scheme to financially secure the future of private job seekers. The name of this scheme is National Pension Scheme. If you invest properly in this scheme, then after retirement you can get a pension of up to 50 thousand rupees every month. Here we are going to give you information about how you can get this much pension. Let us tell you how much money you will have to invest every month to get a pension of 50 thousand rupees.

Get tax exemption

NPS account holder gets income tax exemption of up to Rs 1.5 lakh under section 80C and additional Rs 50,000 under section 80CCD. However, the income from annuity is taxed. This income can be deducted from all your other income. By adding in, your slab will be determined and income tax will have to be paid accordingly. Whereas in Tier-1 account of NPS, the benefit of tax exemption is available on both contribution and withdrawal. In this case, the account holders will also get this benefit.

Heavy duty scheme

NPS is a mode of investment. It has been designed in such a way that even after retirement people can afford their expenses. It has less risk than equity and higher returns than PPF or Fixed Deposit. There are four asset classes in NPS – Equity, Corporate Debt, Government Bonds and Alternative Investment Funds. Investors have two options to invest in NPS – Active and Auto Choice.

Subscriber cannot withdraw the entire corpus on maturity. He has to invest 40% of the total NPS corpus in buying an annuity plan from a life insurance company. This annuity amount is the regular pension that the subscriber will get after retirement. The remaining 60 percent amount can be withdrawn in lump sum. However, some part of this can also be invested in buying an annuity. Thus an NPS subscriber can use more than 40% of his corpus and up to 100% to buy annuity. The more money you leave to buy an annuity, the more pension you will get after you retire.

How to get Rs 50,000 pension

If you want to get a pension of 50 thousand rupees every month after retirement, then you have to invest in this way. For this, you have to start investing from the age of 24. You have to deposit Rs 6000 every month. Accordingly, you will have to save Rs 200 daily. If he invests in NPS like this for 36 years, his total NPS investment at maturity at 10% per annum will be Rs 2,54,50,906.

If he spends 40% of his total corpus on buying annuity, he will get a pension of Rs 50,902 per month after retirement. If someone wants to get a pension of up to 75 thousand rupees after retirement, then he will have to invest 10 thousand rupees every month in NPS. Think of it like a 25 year old person invests Rs 10,000 every month in NPS for the next 35 years.

His total NPS investment at 10% annual return at maturity is Rs.3,82,82, 768 will be Rs. If he spends 40% of his total corpus on buying annuity, he will get a pension of Rs 76,566 per month after retirement.

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Meanwhile, Finance Minister Nirmala Seemaraman has given a big statement regarding tax exemption. He told that the optional income tax system with seven tax slabs was brought by the government so that people of low income group have to pay less tax. Sitharaman said that in the old tax regime, every taxpayer can claim exemption in about 7-10 ways.

No exemption in the new system

Income tax rates are between 10, 20 and 30 percent depending on the income limit in the old tax regime. The minister said that along with the old tax regime, the government has come up with another system, in which there is no exemption, but it is simple and the tax is less. Sitharaman said, ‘I had to make seven slabs so that there are lower rates for the people of low income group.’

Alternative income tax system was introduced in the budget 2020-21. The Finance Minister was speaking on the occasion of the release of the book ‘Reform Nation’ by Gautam Chikramane, Vice President of Observer Research Foundation on Friday. During this, he said, the government had introduced an alternative income tax regime in the General Budget 2020-21, under which individuals and Hindu Undivided Families (HUFs) were taxed with lower rates. However, other tax exemptions like rent allowance, housing loan interest and investment under 80C are not given in this arrangement.

Let us tell you that tax payers have been demanding from the government for a long time to increase the income tax exemption limit from Rs 2.5 lakh to Rs 5 lakh. Along with this, there is also a demand to increase the investment limit under 80C. It will be a matter to be seen which demands are considered by the government and can be announced in the budget on 1st February.

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Talking about the New Tax Regime, the tax rate in this is the same for people of all ages.  Income Tax in India is collected through the Income Tax Department. Those whose income is more than a certain limit, they have to pay income tax every year. Two tax regimes have been fixed by the government in the country.

They also have different advantages. At the same time, the Union Budget (Budget 2023) is also to be presented by the Central Government in the coming few weeks. This time in the budget, people have expectations of a big announcement on income tax as well. However, even before the budget, it is very important for some people to know one important thing.

Tax Slab Different slabs of income tax have been fixed in the country. In these, different tax rates are fixed on income in New Tax Regime, whereas in Old Tax Regime, different tax rates are fixed on income. Talking about the New Tax Regime, the tax rate in this is the same for people of all ages. Although there is a slight change in the tax rates according to the age in the Old Tax Regime.

New Tax Regime In New Tax Regime, Hindu Undivided Family, persons up to 60 years of age, senior citizens between 60 years to 80 years of age and very senior citizens above 80 years of age will have to pay tax at the same rate. Any increase in the basic exemption limit in the new tax regime will not benefit senior and very senior citizens. On the other hand, in the New Tax Regime, tax is waived up to Rs 2.5 lakh annually.

Old Tax Regime

However, tax exemption can be availed according to age in Old Tax Regime. For the financial year 2020-21, if a person below 60 years of age pays tax according to the Old Tax Regime, then his annual tax up to Rs 2.5 lakh is waived. After this, 5% tax is levied on 2.5 to 5 lakh rupees annually.

Their tax up to three lakh rupees is waived , while according to the Old Tax Regime for the financial year 2020-21, senior citizens, whose age is more than 60 years but less than 80 years, they will have to pay three lakh rupees annually in income tax.

Discount up to. This means that if a person, whose age is between 60 years to 80 years and he files income tax according to Old Tax Regime, then he will not have to pay any tax on income up to Rs 3 lakh annually. Their tax is waived on income up to three lakh rupees annually. At the same time, after this, they will have to pay 5% tax on income ranging from Rs 3 lakh to Rs 5 lakh annually.

Their tax up to five lakh rupees is waived , while super senior citizens whose age is more than 80 years, if they file tax according to Old Tax Regime, then they do not have to file tax on income up to five lakh rupees annually. Will happen. However, they will have to pay tax at the rate of 20 per cent on income between Rs 5 lakh and Rs 10 lakh.

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The business class including the employed, farmers have various expectations from this budget. From the Ministry of Finance, from the first budget of independent India till now, tax payers have been given various facilities as well as tax slabs have been changed from time to time. New tax regime and old regime have been started by the Modi government for the tax payers.

Income tax exemption for annual income up to 2.5 lakh

. There is also a big difference in the tax slabs of both the regimes. According to a figure, most of the tax payers choose the old regime only. In both the regimes, annual income up to Rs 2.5 lakh is exempted from income tax. But there is a tax of 5 percent on income from 2.5 lakh to 5 lakh. In the old regime, 20 percent tax has to be paid on income between Rs 5 lakh to Rs 10 lakh annually. An annual income of 10 to 15 lakhs or more is taxed at 30 percent.

Let’s talk today if your annual income is Rs 10 lakh and you live on rent. Apart from this, if you invest the entire Rs 1.5 lakh under Section 80C of Income Tax, then today we calculate your tax.

Here is the complete math

1. If your annual income is Rs 10 lakh, then after reducing the standard deduction of Rs 50,000 given by the Ministry of Finance, your taxable income reduced to Rs 9.50 lakh.
2. After this it is considered that you have saved up to Rs 1.5 lakh under Section 80C of Income Tax. In this you can claim Tuition Fee, LIC (LIC), PPF (PPF), Mutual Fund (ELSS) and EPF (EPF) etc. In this way your taxable income has come down to Rs.8 lakh.
3. On House Rent Allowance (HRA) up to one lakh rupees, you do not need to give the PAN card of the landlord. If you pay this much rent, then your taxable income comes down to Rs 7 lakh. You will have to pay tax on this amount.
4. Rs 12,500 was taxed at the rate of 5 per cent on income between Rs 2.5 lakh to Rs 5 lakh. After this, 40 thousand tax was done on the income of 5 to 7 lakhs at the rate of 20 percent. In this way, from 2.5 lakh to 5 lakh, the total tax was Rs 52,500.
5. Now on this you will have to pay cess at the rate of 4 percent, which is Rs.2,100. In this way, your total income tax on salary of 10 lakhs is Rs 54,600.

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In this sequence, the government has also provided a lot of facilities to the people who pay tax for the country. In this sequence, the government has also taken many welfare decisions during the budget. Out of these, today we are going to talk about an important decision taken by the Modi government in the budget during its tenure.

Income Tax

The Income Tax Act provides many concessions and exemptions along with making provisions for tax on the income of the citizens. Tax payers also get a lot of relief from these concessions and exemptions. Keeping this in mind, an important decision was taken by the Modi government in the budget of 2018.

Income tax return

Explain that salaried individuals and pensioners can avail an exemption by default without any investment or expenditure and can get a certain amount of exemption. Actually, salaried individuals and pensioners can avail Standard Deduction while paying income tax. Standard Deduction was removed for a few years, but then the Modi government did what no one could do.

Standard deduction

was once again introduced by the Modi government in the budget of the year 2018. The then Finance Minister Arun Jaitley re-announced the standard deduction in the 2018 budget. In Budget 2018, Rs 40,000 was announced as standard deduction again. Interestingly, the provision of standard deduction was available earlier. However, it was abolished in the Finance Act 2005.

Income Tax Exemption

The deduction provided in the form of standard deduction can be claimed by all salaried employees irrespective of the requirement of any investment. At the same time, in the Interim Budget 2019, presented on February 1, 2019, before the 2019 Lok Sabha elections, an important announcement was made regarding the standard deduction.

Standard deduction

The interim budget presented on 1 February 2019 included several tax benefits for the salaried and middle class. In this budget, the exemption of Rs 10,000 was increased and the amount of standard deduction was increased from Rs 40,000 to Rs 50,000. Now, while paying income tax, salaried people get a rebate of Rs 50,000 as standard deduction. This will go a long way in helping taxpayers reduce their tax outgo.

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The maximum income tax is paid by the salaried class. Tremendous growth has been registered in the last financial year. There has been a demand from the salaried class for a long time to change the income tax slab. If you also pay tax every year, then you are likely to get relief from Finance Minister Nirmala Sitharaman in this budget. This time the experts are expressing hope that the Finance Minister will definitely give relief to the middle class in the budget.

The budget will be presented on February 1, 2023

The budget for the financial year 2023-24 will be presented by the government on February 1, 2023 in the Parliament. What are the things the government is preparing to announce in this budget? Let us give you information about this.

Income tax exemption likely to increase

At present no tax has to be paid on annual income up to Rs 2.50 lakh. But the 5 percent tax on income between Rs 2.5 lakh and Rs 5 lakh is waived off by the government. In this way, if your taxable income is 5 lakhs or less, then you do not have to pay tax. This time in the budget, Finance Minister Nirmala Sitharaman is planning to increase the limit of 2.5 lakh to 5 lakh.

There was a change in 2014 The last change in the income tax limit was done in the year 2014 by the government. At that time the limit of 2 lakhs was increased to 2.5 lakhs. This is the last budget of the government before the Lok Sabha elections, so it is expected that this time this relief can be given to the salaried class. The government is considering increasing the personal tax exemption limit.

Finance Ministry asked for suggestions

According to sources, suggestions were sought from different industries on behalf of the Finance Ministry in the last days regarding the budget. Finance Minister Nirmala Sitharaman had asked for suggestions regarding tax that how much improvement can be done in the new tax regime. It is believed that this time the government can make changes in both new and old tax regime. At present, there is no benefit of any kind in the new tax regime.

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Talking about the New Tax Regime, the tax rate in this is the same for people of all ages.  Income Tax in India is collected through the Income Tax Department. Those whose income is more than a certain limit, they have to pay income tax every year. Two tax regimes have been fixed by the government in the country.

They also have different advantages. At the same time, the Union Budget (Budget 2023) is also to be presented by the Central Government in the coming few weeks. This time in the budget, people have expectations of a big announcement on income tax as well. However, even before the budget, it is very important for some people to know one important thing.

Tax Slab Different slabs of income tax have been fixed in the country. In these, different tax rates are fixed on income in New Tax Regime, whereas in Old Tax Regime, different tax rates are fixed on income. Talking about the New Tax Regime, the tax rate in this is the same for people of all ages. Although there is a slight change in the tax rates according to the age in the Old Tax Regime.

New Tax Regime In New Tax Regime, Hindu Undivided Family, persons up to 60 years of age, senior citizens between 60 years to 80 years of age and very senior citizens above 80 years of age will have to pay tax at the same rate. Any increase in the basic exemption limit in the new tax regime will not benefit senior and very senior citizens. On the other hand, in the New Tax Regime, tax is waived up to Rs 2.5 lakh annually.

Old Tax Regime

However, tax exemption can be availed according to age in Old Tax Regime. For the financial year 2020-21, if a person below 60 years of age pays tax according to the Old Tax Regime, then his annual tax up to Rs 2.5 lakh is waived. After this, 5% tax is levied on 2.5 to 5 lakh rupees annually.

Their tax up to three lakh rupees is waived , while according to the Old Tax Regime for the financial year 2020-21, senior citizens, whose age is more than 60 years but less than 80 years, they will have to pay three lakh rupees annually in income tax.

Discount up to. This means that if a person, whose age is between 60 years to 80 years and he files income tax according to Old Tax Regime, then he will not have to pay any tax on income up to Rs 3 lakh annually. Their tax is waived on income up to three lakh rupees annually. At the same time, after this, they will have to pay 5% tax on income ranging from Rs 3 lakh to Rs 5 lakh annually.

Their tax up to five lakh rupees is waived , while super senior citizens whose age is more than 80 years, if they file tax according to Old Tax Regime, then they do not have to file tax on income up to five lakh rupees annually. Will happen. However, they will have to pay tax at the rate of 20 per cent on income between Rs 5 lakh and Rs 10 lakh.

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Meanwhile, industry body Assocham has made an important demand from the government in its pre-budget recommendations. This demand can affect crores of taxpayers of the country. Actually, Assocham has demanded the government to increase the scope of exemption in income tax. If this demand is accepted by the government, then taxpayers are going to get benefited.

ASSOCHAM has urged the government to increase the income tax exemption limit to at least Rs 5 lakh so that more disposable income remains in the hands of the consumers and boost consumption in the economy. At present, according to the income tax slab, no tax is levied up to Rs 2.5 lakh annually. At the same time, rebate is achieved on annual income of Rs 2.5 lakh to Rs 5 lakh.

Income tax exemption limit

Assocham President Sumant Sinha said that the boom in both direct and indirect taxes should give enough room to the government to increase the income tax exemption limit. The government must respond to the proactive steps that other countries are taking to support the production of green hydrogen as India strives to become a major energy producer.

Income Tax He said that now the total income up to Rs 2.50 lakh is exempted from income tax. However, if the total income in a year is up to Rs 5 lakh, then the income up to Rs 5 lakh can be exempted. If the income exceeds Rs 5 lakh, the entire amount (excluding the exemption limit of Rs 2.50 lakh) is taxed.

To increase Atmanirbhart job and promote green economy, attention should be given to sustainable and green industries. He said that economic security is bigger than manufacturing security. Pursuing green economy, achieving energy independence, investing in green industries and reducing the use of fossil fuels are all steps towards Atmanirbhart.

Deepak Sood, Secretary General, Economic Development

Assocham, said that promoting consumption by leaving more money in the hands of consumers would be a better decision for further improvement in economic growth. At the same time, along with consumption, the other way of sustainable development will be to further promote investment. In this direction, Assocham said that 15 percent corporate tax rate for new investment in manufacturing sector can be applied in all sectors including services.

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If you are also employed then you will also be interested to know about the ways of saving tax. The salary structure of many people is such, in which there is no provision of tax free allowance. Even if your income tax liability is low, you can reduce it further by adopting some alternative ways of saving tax. Do you know that your employer can help you save tax by contributing to NPS on their behalf, if they so desire? Yes, if you do not know about this, then we are giving you information about this in detail.

Employee’s own contribution to his NPS account is eligible for deduction under section 80CCD(1) and not under section 80C. The limit of Rs 1.50 lakh is prescribed under section 80CCE which covers all items eligible for deduction under section 80C, 80CCC and 80CCD(1).

Know what are the rules

Deduction under section 80CCD (2) is made available to the employee in relation to the employer’s contribution to the employee’s NPS account. This deduction is given up to Rs 1.50 lakh, which is under section 80C, 80CCC and 80CCD(1). At the same time, deduction of up to 10 percent of the basic salary and dearness allowance of the employee is available under section 80CCD (2). Higher deduction of up to 14 per cent of contribution is available as a percentage of basic pay for Central and State Government employees.

Although there is no limit for deduction in respect of employer’s contribution to the NPS account of an employee under section 80CCD(2), section 17(2) of the Income-tax Act provides that the total amount of the employer’s contribution to the employee’s provident fund is In case of contribution, National Pension System and superannuation exceeds 7.50 lakh in a year, the excess in the hands of the employee will be taxed as perquisite.

In addition to the deduction up to Rs 1.50 lakh in NPS account, all taxpayers can avail additional deduction of up to Rs 50,000 under section 80CCD (1B). In total, you can contribute up to Rs 2 lakh to your NPS account and get the benefit of tax deduction.

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The tribunal said that even if the person has spent this amount in cash, then exemption can be claimed on it. This case was related to the tax levied on the capital gain tax on the sale of flats. Experts believe that unaccounted money was not used in the payment in this case and the taxpayer was not doing any business. That’s why the court gave such an order.

Capital gains are taxed

As per the tax rules, capital gains are calculated on the basis of sale amount minus cost of acquisition and cost of improvement. Both of these are calculated on the basis of Cost Inflation Index. Higher the cost of these two components, lower will be the taxable capital gain and tax will be levied on the basis of this calculation. The cost of acquisition includes the cost of the house, registration fees and broker’s fees. Capital expenditure is included in the cost of improvement, which increases the value of the property.

This is the case

NRI Komal Gurmukh Sangtani and her husband had appealed in ITAT. This case pertains to the financial year 2009-10. Sangtani said that he had to upgrade the flat to make it habitable. Normally in such cases the payment is made in cash only. Sangtani had claimed to include interest of Rs 5.5 lakh on the home loan as cost of acquisition. ITAT in its order said that the taxpayer may have claimed this interest under the head of income from house property. The tribunal has referred the matter to the IT officer for re-verification.

Tax on sale of house

You must pay a capital gains tax on capital gains due from selling any asset. Taxes to benefit the sale of a home are calculated in two ways. If you sold a house after storing it for two years, it would be considered a long-term capital gain. Long-term capital gains collect capital gains tax of up to 20%. But if you sold a house before 24 months, this short term will be considered as a short term capital gain. If you have done IT improvement or expansion after purchasing the property, then income tax can be issued by charging an index fee of the expense. This will reduce the capital gains tax burden.

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Now only a few hours are left for July 31, the last date for filing income tax returns. In such a situation, if you have not filed your income tax return yet, then deal with this work immediately because no announcement has been made by the government to extend its last date. If you do not file your IT return before 12 midnight of July 31, then you may have to pay a fine before filing the return from August 1.

Section 80C under the Income Tax Act is often mentioned among taxpayers before filing income tax returns. This is the provision under which the claim of exemption from income tax is presented. Let us know today about the different types of deductions available in income tax under 80C.

What is section 80C and how is it exempted in income tax?

Section 80C is the most commonly used provision under the Income Tax Act. Most of the taxpayers of our country take the facility of exemption from income tax using this provision. They get these benefits on their investment activities. That is why it is very important to know about 80C. Section 80C of Income Tax allows us to keep certain expenses and the amount spent on investments out of the purview of tax. Experts say that if you spend wisely and claim tax deduction while filing income tax return under 80C, then you can be free from tax burden of up to Rs 2 lakh.

Benefit is also available under many subsections falling under 80C 

Section 80C has been included in the income tax laws with an aim to encourage taxpayers to save and invest. Under this section, not only does an individual get the benefit of tax exemption, but it also helps the economy of the country in a small way. There are also several subsections under section 80C which include 80CCC, 80CCD(1), 80CCD(1b) and 80CCD(2). The maximum limit of income tax exemption under all these sections is two lakh rupees (1.5 lakh + 50 thousand).

Exemption up to a maximum of Rs 1.5 lakh can be claimed in a year as deduction under section 80C and its sub-sections. Apart from this, a deduction of Rs 50,000 can also be claimed for investing in NPS under section 80CCD(1b). It is also important to know here that the benefit of deduction under 80C can be availed only by those taxpayers who are individual Indian citizens and come from Hindu Undivided Families (HUF).

Which investments get the benefit of income tax exemption under 80C?

Children’s education fees: You can claim income tax deduction under 80C on the amount spent on your children’s education in schools, colleges and universities in the country. You can avail tax exemption on the amount spent on education of two children in a financial year.

Fixed Deposit (FD): Tax exemption under 80C can also be claimed on fixed deposits made for at least five years.

Life Insurance or ULIP: You can also claim income tax exemption under section 80C on premium payments made to pay for life insurance policies of your self, husband, wife and children.

EPF and PPF : A certain amount from your income is deposited in your EPF account as a pension fund. Even on this amount, you can get the benefit of tax exemption under section 80C. On the other hand, up to a maximum of Rs 50 lakh can be invested in a PPF account every year. The lock-in period on PPF accounts is 15 years. You can also get income tax exemption on the return received after the maturity of the PPF amount. Your PPF account can also be in your own name or in the name of husband, wife or children.

Home loan repayment : Home loan repayments can also claim a deduction of up to Rs 50 lakh per annum. 80C deduction is not applicable on the amount to be paid as interest in home loan. It is important to note here that the lock-in period for availing this benefit is five years. If you sell the property within five years from the date of possession, the amount of all previously claimed deductions will be added back to his income in the sale year.

Sukanya Samriddhi Yojana: If parents pay premiums for the future of their child under Sukanya Samriddhi Yojana, they can also claim tax exemption in income tax under 80C. This facility can be availed for two daughters, in case of twins, the third child can be availed under 80C.

ELSS (Equity Linked Savings Scheme): ELSS is an equity mutual fund with a lock-in period of three years. The asset allocation of ELSS mutual funds is mostly (about 65%) invested in the stock market. Investments made in this item can also be availed under 80C.

Senior Citizen Savings Scheme: Senior citizens above 60 years of age can also avail income tax exemption under 80C on investments made under the Senior Citizen Savings Scheme or NCSS. In case of voluntary retirement, those above 55 years of age can also avail tax exemption under 80C.

NABARD Bonds: Tax exemption under section 80C can also be claimed on the amount spent to buy bonds of National Bank for Agriculture and Rural Development (NABARD).

Other investments on which income tax exemption is available under 80C

Amount spent by way of National Savings Certificate (NSC), National Pension Scheme (NPS), Stamp Duty and Registration Fee on property other than those mentioned above, amount deposited with National Housing Bank or LIC or any other insurer Income tax exemption under 80C can also be claimed on the amount spent as subscription to the notified annuity plans of the U.S.

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