If you are employed then there is good news for you. In fact, the Income Tax Department has given relief to the people by making major changes in the rules related to rent free accommodation. The rules of Rent-Free Accommodation given to the employees by the company have been changed.

The Central Board of Direct Taxes (CBDT) has issued a notification regarding this. After the change in rules, employees will now be able to save more. The in hand salary of the employees will increase. Changes in the rules related to rent-free accommodation have come into effect from September 1.

Calculation will be done under the new formula.

To put the new rules in simple language, if an employee is living in a house provided by the company, then the calculation for him will now be done under the new formula.

According to the notification, employees other than central or state government employees, who live in company-owned houses. The evaluation of their valuation has now been changed. According to the new rule, where the employees are given home (unfurnished) by the company. The ownership of such accommodation is with the company itself.

Its valuation will now be in a different way. Now the urban area whose population is more than 40 lakhs according to the 2011 census, then there will be 10% of HR salary. Earlier it was equal to 15 per cent of the salary in cities with a population of 2.5 million as per the 2001 census.

The post Income Tax New Rules: Big relief to the salaried, changed the rule of rent free accommodation, in hand salary will increase first appeared on Rightsofemployees.com.

This clarification will be regarding consent on the option of regime election. The Central Board of Direct Taxes has also issued guidelines in this regard. The Finance Ministry has given taxpayers the option of two tax regimes for the financial year 2023-24. Taxpayers can choose one of these tax regimes. Let us tell you that the new tax slab is the default, so the salaried taxpayers who like the tax slab of the old tax regime will have to choose the old tax regime.

The Central Board of Direct Taxes has said that employers should clarify with their employees about choosing the tax regime and only then deduct TDS. Because, in the old tax regime, the facility of exemption and deduction on investment will be available as before. Whereas, the tax slabs are less in the new tax regime, but there is no exemption.

In such a situation, salaried taxpayers want to get the benefit of exemption under investment, then they will have to choose the old tax regime. If they want to avoid tax on annual income of 7 lakhs, then they will have to choose a new tax regime. Therefore, before deducting TDS, the employer is required to seek clarification from his employees on the decision of tax regime election.

Tax slabs and tax rates under the new tax regime

• Tax rate zero percent tax on earning Rs 0-3 lakh
• 5% tax on Rs 3-6 lakh
• 10% tax on Rs 6-9 lakh per annum
• 15% tax on earning Rs 9-12 lakh
• 20% tax on annual income of 12-15 lakhs
• 30% tax on 15 lakh income

ax slabs and tax rates under the old tax regime

• Zero percent tax on income up to 2.5 lakhs
• 5% tax on annual income from 2.5 lakh to 5 lakh
• 20 percent tax on earning 5 lakh to 10 lakh
• 30% tax on annual income above 10 lakhs

The post Income Tax New Rules: For TDS it will be necessary to ask the tax regime from the employee, know full details first appeared on Rightsofemployees.com.