The government had announced in the Union Budget 2024 to increase the standard deduction from Rs 50,000 to Rs 75,000 in the new regime. This clarification has also been included in the Income Tax Bill, 2025. The bill has been passed in Parliament. It is expected to come into force from April 1 next year.

Only employed people can avail the benefit of standard deduction

It is important to keep in mind that the benefit of standard deduction is available only to employed people. Earlier, the standard deduction was Rs 50,000 in both the new and old regimes of income tax. In the Union Budget 2024, the government increased it to Rs 75,000 in the new regime. But, it is still Rs 50,000 in the old regime. Standard deduction reduces the tax liability of the employee. The government had added a new provision in section 16(ia) of the Finance (No 2) Act, 2024 to increase the standard deduction to Rs 75,000 in the new regime.

Finance Minister posted about the amendment on social media

Finance Minister Nirmala Sitharaman has posted about this on the social media platform X. She has said in it that apart from the new Income Tax Bill, we are making some special amendments in the Income Tax Act, 1961. Its purpose is to clarify the situation about the new regime of income tax. In this amendment, it has been said that some special deductions will have to be made before calculating the income coming under ‘salary’.

The amendment was also incorporated in the Income Tax Bill, 2025

Under the new provision included in section 16(ia), a deduction of Rs 50,000 will have to be made. If income tax is calculated under clause (ii) of sub-section (1O) of section 115BAC, then the provision of this clause will be the same as for Rs 50,000, but instead of this, the option of Rs 75,000 will be used. This change has also been incorporated in the Income Tax Bill, 2025.

The situation regarding deduction in UPS is now clear

In this amendment, the confusion regarding deduction for Unified Pension Scheme (UPS) has been removed. After this, it has become clear that the same tax benefits will be available in UPS as are available in National Pension System (NPS). The Income Tax Bill, 2025 is expected to come into force from April 1 next year. It will replace the Income Tax Act, 1961. The rules of Income Tax Act, 1961 came into force from April 1, 1962.

The post Income Tax Update: Govt Raises Standard Deduction to ₹75,000 Under New Regime first appeared on Rightsofemployees.com.

This year the last date for filing income tax return is 31st July. If you are also preparing to file your return then it is important for you to know which income is taxed and which is not. By knowing this, you will not only be able to file your return correctly but will also save tax. Today we are telling you about those 10 incomes on which you do not have to pay income tax. Let us know about them.

1. Agricultural Income: Income from agriculture in India is completely exempt from income tax. This exemption is not only on the sale of crops, but it also includes rent received from agricultural land or buildings and profit earned from buying or selling agricultural land.
2. Interest income from NRE accounts: NRE accounts offer benefits such as tax-free interest on NRE deposits. NRIs can also transfer funds to their native place through NRE accounts.
3. Gratuity: In the private sector, employees who receive gratuity amount up to Rs 20 lakh on retirement are not required to pay income tax. 

Also Read: Why should the Finance Minister increase the 80C limit in Budget 2024?

1. Capital gains: Some capital gains are also tax-free. Individuals who receive compensation for urban agricultural land do not have to pay income tax.
2. Profit from Partnership Firm: Under the Income Tax Act, the income of a partnership firm is taxed at the entity level. Partners working for the firm do not pay income tax as they get a share of the profit after paying taxes. 
3. Scholarship: Students who receive scholarships from government and private institutions for their studies are exempted from income tax.
4. Provident Fund: Provident funds, mandatory savings schemes for companies registered under the Companies Act, 1956 in India, grow with age and become tax-free upon your retirement from the job. Employee Provident Fund offers tax-free returns, provided the employee has actively contributed for more than 5 years, even if they have changed employers during this period.
5. Tax-free pension: Pensions from certain organisations, such as the UNO, are exempt from tax. Family pensions received by dependents of employees are also tax-free.
6. Voluntary retirement: The amount received on voluntary retirement before retirement is exempt from tax up to Rs 5 lakh. Gifts received from relatives or on the occasion of marriage are also exempt from tax. 
7. Allowances or any compensation: Certain allowances are exempt from tax for any individual in India. For example, the foreign allowance provided by the Government of India to its employees working abroad is tax-free. Additionally, compensation received from Public Sector Undertaking (PSU) companies on voluntary or retirement is also exempt from tax. 

The post Non Taxable Income: There is no income tax on these 10 incomes, know this before filing the return first appeared on Rightsofemployees.com.

Income Tax Update: There is a lot of discussion on social media regarding the new tax regime. Now the Finance Ministry has given clear information regarding the tax regime. For the last few days, many misleading things were being seen on social media regarding the new tax regime.

Along with this, it was being told that there is going to be a change in the tax regime from April 1, 2024, but the Finance Ministry has made it clear by tweeting that there is not going to be any change in the tax regime.

Finance Ministry gave information
The ministry has said that no new changes have been made from April 1, 2024. A revised new income tax system was implemented for the people in the financial year starting from April 1, 2023, under which the tax rates are “much lower”. However, it does not have the benefit of various exemptions and deductions (except the standard deduction of Rs 50,000 from salary and Rs 15,000 from family pension) like the old system.

It has come to notice that misleading information related to new tax regime is being spread on some social media platforms. It is therefore clarified that:

👉 There is no new change which is coming in from 01.04.2024.

👉 The new tax regime under section 115BAC(1A) was… pic.twitter.com/DtKGkK0D5H

— Ministry of Finance (@FinMinIndia) March 31, 2024

The ministry has said that the new tax regime is the ‘default’ tax system. However, taxpayers can choose the new or old tax system as per their convenience as per their convenience… The option to opt out of the new tax system is available till the filing of return for the year 2024-25.

How much is the tax?
In the new tax regime, there is no tax on annual salary of Rs 0-3 lakh. After this, 5% tax is levied on income of Rs 3 to 6 lakh, 10% on income of Rs 6 to 9 lakh, 15% on income of Rs 9 to 12 lakh, 20% on income of Rs 12 to 15 lakh and 30% on income above Rs 15 lakh. Apart from this, 4% is charged as Health and Education Cess.

If you do not choose the tax regime then…
Let us tell you that if any taxpayer forgets to select his tax regime or does not select the tax regime, then his new tax regime will automatically be implemented. After this, your tax will be automatically deducted as per the new tax regime.

Tax slab in old tax regime-

• 0 to ₹2.5 lakh = 0
• ₹2.5 lakh to ₹5 lakh = 5%
• ₹5 lakh to ₹10 lakh = 20%
• Above ₹10 lakh = 30%

RBI Gave New Update! 97.69 percent of ₹2,000 notes returned to the banking system

The post Income Tax Slab: No new changes in the income tax system from April 1, Finance Ministry gave big information… first appeared on Rightsofemployees.com.

On the other hand, the Income Tax Department says that till now more than three crore income tax returns have been filed. Along with this, the Income Tax Department has also made a special announcement, about which it is very important for people to know.

Income tax return

Actually, while filing income tax return, people have to give information about their income. It is very important to give the details of the means through which people have earned in the financial year. Along with this, the Income Tax Department has said to take care of important things for foreign bank account, property and income holders as well.

The Foreign Income

Tax Department has tweeted, ‘Please note: Foreign bank accounts, property and income holders! If you have foreign bank accounts, assets or income, please fill the Foreign Assets (FA)/Foreign Source of Income (FSI) schedule in your Income Tax Return (ITR) for Assessment Year 2023-24. Last date for filing income tax return for the assessment year 2023-24: 31st July, 2023.’

कृपया ध्यान दें: विदेशी बैंक खाते, संपत्ति और आय धारक!

यदि आपके पास विदेशी बैंक खाते, संपत्ति या आय है तो कृपया निर्धारण वर्ष 2023-24 के लिए आयकर रिटर्न (आईटीआर) में विदेशी संपत्ति (एफए)/आय के विदेशी स्रोत (एफएसआई) अनुसूची भरें।

निर्धारण वर्ष 2023-24 के लिए आयकर रिटर्न दाखिल… pic.twitter.com/mtji0Y8WiI

— Income Tax India (@IncomeTaxIndia) July 18, 2023

Black money

On the other hand, the Income Tax Department has told that if someone fails to give such information, a fine of Rs 10 lakh can be imposed under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. In this case, if you are a resident of India in the previous year, you have foreign assets or bank accounts or you have earned foreign income during the previous year… those people have to give this information in ITR.

Foreign assets

While there, note that the resident in India will have to fill the foreign asset schedule for the foreign assets owned by him till 31 December 2022. Even if you do not have any taxable income or your income comes under the basic exemption limit. Whether this information is entered in any other schedule (like Schedule AL), foreign asset arising/acquired from disclosed sources of foreign or domestic income.

Foreign Assets (FA) include

– – Foreign bank accounts
– Foreign equity and debt
– Financial interest in any entity/ business
– Immovable property
– Any other capital asset
– Any other foreign assets specified in Schedule FA

The post Taxpayers Big Update! Income tax department issued new order regarding ITR filers first appeared on Rightsofemployees.com.

Presently the process of filing income tax return is going on. To file income tax return, you have to visit the official site of Income Tax Department. But for filing income tax return, you should know about some important things.

Due to your one mistake, you can also be in trouble. Today, let us know which is the important work that you should do before filing income tax return.

What is the most important thing

You need a PAN card to file income tax return. Returns can be filed only with the help of PAN card. The Income Tax Department has said many times that it is necessary to link your PAN card with Aadhaar card. For this, the government has given time till June 30, 2023.

That is, if you do not link PAN card with Aadhaar card by June 30, 2023, then your PAN card may become inactive. If the PAN card becomes inactive then many financial transactions can be affected. Not only this, due to inoperative PAN card, you will not be able to file income tax return as well.

If you have not yet linked your PAN card with Aadhaar card, then by 31 July 2023 you can get rid of many problems by linking it. Because if you do not do this then you will have to face trouble in filing income tax return.

How to link PAN card with Aadhaar card

You can link your PAN card with Aadhaar card by visiting the official website of Income Tax Department. As soon as you go to the link, you should go to the option of Aadhaar link on the left side. After this a new page will open.

On the new page, you will have to enter the number of Aadhaar card and PAN card. Now click on the button of Validate. If the details given in Aadhaar and PAN card match then the process of linking will be done. If the details do not match, you will need to update them first.

The post Big news for these People! Do this important work before filing income tax, you will be saved from hassles first appeared on Rightsofemployees.com.

If you are preparing to file Income Tax Return Filing, then do not be in a hurry at all. Actually, the ITR deadline for the financial year 2022-23 (FY23) is 31 July. The Income Tax Department is constantly encouraging people to file ITR. Due to which there has been a rapid increase in the number of ITR filers in the last few years.

In the last few years, the Income Tax Department has tried to make the ITR filing process more easy. Therefore, before filling ITR this time, you should know about the changes.

Keep these documents ready before filing the return-

Income Tax Department has introduced AIS (Annual Information Statement) and TIS (Taxpayer Information Summary) to make ITR easier. . The department says that AIS will bring transparency in ITR filing and make things simpler for taxpayers. Experts say that with the help of AIS, filing income tax becomes very easy.

That’s why you must have AIS before filing ITR. Do not file ITR until AIS is received by you. Because there can be a difference in the figures if ITR is filed without AIS. Although the updated AIS is not yet available, it is likely that this document will be available to taxpayers in the first week of May.

What is AIS?

In the new AIS form, taxpayers are given the details of all the income earned through different means. These include savings account interest income, recurring and fixed deposit income, income from dividend, mutual funds, and Income from securities transactions, money received from abroad etc. are included.

To make ITR filing easy, you will see all types of transactions in AIS. In this, taxpayers get lump sum information about the taxable amount. Earlier the department had started it on trial basis, now it has been made compulsory.

Generally, the salaried class files ITR on the basis of Form-16. However, apart from this, many types of income and even gifts also come under the ambit of income tax. This is where AIS and TIS prove to be helpful for taxpayers. In AIS, you get the details of every income from sources other than salary, which have been specified under the Income Tax Act 1961. Meaning, information about every income that is in the taxable category will be available in it. In simple words, the detailed statement of all the financial transactions done during a financial year can be called AIS. TIS is the summary of this.

Download AIS/TIS online like this (How to Download AIS/TIS)…

First of all go to the Income Tax Filing Portal.
Now log in to your account with the help of PAN number and password.
Go to the Services tab in the top menu.
Select ‘Annual Information Statement (AIS)’ in the dropdown.
A separate website will open as soon as you click on Proceed.
– Select the option of AIS on the new website.
Now you will get the option to download both AIS and TIS.
– You can download AIS and TIS in PDF or JSON format.

Download AIS/TIS online like this (How to Download AIS/TIS)…

First of all go to the Income Tax Filing Portal.
Now log in to your account with the help of PAN number and password.
Go to the Services tab in the top menu.
Select ‘Annual Information Statement (AIS)’ in the dropdown.
A separate website will open as soon as you click on Proceed.
– Select the option of AIS on the new website.

Now you will get the option to download both AIS and TIS.

-You can download AIS and TIS in PDF or JSON format.

Apart from this, now the AIS app has also been launched. Whose name is AIS For Taxpayers. With its help, taxpayers will be able to easily view the information available in Annual Information Statement (AIS) or Taxpayer Information Summary (TIS) on their phones. This mobile application can be downloaded for free from Google Play and App Store.

Process of Registration on AIS App

– Open Google Play Store in your mobile phone.
Now search by typing AIS for Taxpayers in the search option.
After this the AIS app will appear on your mobile screen.
– Click on the install option given next to it and it will be downloaded.
After the app is downloaded in the phone, open it and fill the PAN card details.

After registering yourself through PAN details, OTP will come on your registered number.
Authentication will have to be done through this OTP and registered e-mail on the e-filing portal.
– After this, you can start using the mobile by setting a 4 digit PIN.

Through AIS App, taxpayers can get information of 46 types of transactions on their mobile phones. Apart from this, filing of Income Tax Return (ITR) will also become easier. Through the information available on this, taxpayers can avoid mistakes while filing ITR.

Apart from this, keep some documents ready before filing the return. Among the documents that the Income Tax Department is talking about, Form 16, bank statement, interest certificate received from the bank, if there is a home loan, then its statement is necessary.

The post Income Tax Update: Alert for taxpayers, do not fill ITR without AIS, check all details first appeared on Rightsofemployees.com.

Giving information, Finance Minister Nirmala Sitharaman has told that now you will not have to pay any tax on income up to Rs 10 lakh. Yes… In Budget 2023, Nirmala Sitharaman had made income up to 7 lakhs tax free, but today we will tell you about such a method, in which you will have to pay zero tax even on income up to 10 lakhs.

Will not have to pay tax on income up to 10 lakhs

If you do tax planning wisely, you can save tax even on income up to 10 lakhs. Tax experts believe that to make income up to 10 lakhs tax-free, you have to opt for the old tax regime.

Government increased the scope of exemption

Let us tell you that in this year’s budget, the Finance Minister has increased the scope of exemption of basic tax in the new tax regime. In the budget, the Finance Minister had announced to increase this scope. At the same time, no change was made in the old tax system. Let us tell you that in the old tax system, tax saving facility is available from home loan to insurance policy.

Income up to 10 lakhs will not be taxed

According to media reports, salaried people can save tax even on income up to Rs 10 lakh, but for this it is very important to plan properly. If any taxpayer plans properly under the old tax system, then he can make income up to 10 lakhs tax free.

How to save tax?

Under section 80C of the Income Tax Act in the old tax regime, you can save Rs 1.5 lakh by investing in EPF, PPF, ELSS, NSC. After deducting this Rs 1.5 lakh, your tax liability will come down to Rs 8.5 lakh.

In what ways can you save how much tax?

Apart from this, you can save up to Rs 50,000 in NPS. You can save this under section 80CCD (1B). Apart from this, if you have taken a house, then you can save tax up to Rs 2 lakh. At the same time, by taking a medical policy, you can save tax up to Rs 25,000. Apart from this, if your parents are senior citizens, then you can get an additional deduction of up to Rs 50,000 by purchasing health insurance in their name.

Will have to pay zero tax

Further, as per the provisions of the Income Tax Act, the tax on income of Rs 5 lakh is Rs 12,500 (5% of Rs 2.5 lakh). In such a situation, a rebate of Rs 12500 is available under Income Tax Section 87A, because by taking advantage of all the deductions, you have also come in the slab of 5 lakhs and you will have to pay zero tax.

The post Income Tax Update: Big news about Income Tax, Income up to 10 lakhs will not be taxed! first appeared on Rightsofemployees.com.

Giving information, the Finance Minister has told that now no tax will be levied on your income. The Central Government has told that even a single rupee tax will not be levied on any kind of income. A complete guideline has been issued regarding this.

Will not have to pay tax

Although income up to Rs 2.5 lakh is tax free, but apart from this, there are many such incomes on which you do not have to pay a single rupee tax. Let us tell you which income is your tax free.

Gratuity is not taxed.

If a employed person leaves his company after 5 years in any organization, then he gets the benefit of gratuity. This amount is completely tax free. If we talk about government employees, then their amount up to 20 lakhs is tax free. At the same time, the amount of up to 10 lakhs of private employees is tax free.

There will be no tax on PPF and EPS, apart from this, there is no tax on PPF money. The interest received on this, the amount received on completion of the maturity period, all three are tax free. Along with this, if the employee withdraws his EPF after working continuously for 5 years, then he does not have to pay tax on this amount also.

There will be no tax on such gifts, apart from this, if you have received any family property, cash or jewelry from your parents, then it is exempt from tax. There is no tax on such gifts. If he wants to earn by investing the amount received from his parents, then he will have to pay tax on the income earned from it.

The post Income Tax Update: New guideline released! Now income tax will not have to be paid first appeared on Rightsofemployees.com.

Apart from this, a new portal has been created by the Income Tax Department for form correction and income tax return filing. Apart from all these amendments, the Income Tax Department has also unveiled a new system for paying taxes (itr filing) . Taxpayers can now pay their taxes using credit card or UPI as well

Any taxpayer can pay his taxes on the NSDL website using the facility provided by the Income Tax Department with the help of a debit card issued by an authorized bank and net banking from 16 banks.

If you’re in this situation and don’t have an account with one of these banks, paying your taxes can be difficult, but you don’t need to worry.

Pay through these also As part of the new service provided by the Income Tax Department, apart from debit cards, tax payments can also be made through credit cards, online banking, pay-at-bank counters, UPI, RTGS and NEFT. Could

How to pay using UPI and Credit Card?

• First of all login to the e-filing portal using your username and password.
• Now from the menu of the e-file portal, select the new payment option under the e-pay tax option.
• Select the type of tax you want to pay and then proceed.
• Select the assessment year and the tax year for which you want to make the payment.
• After that, provide the details on the tax breakup which includes the details of tax, surcharge, cess etc.
• Now, you can pay using Credit Card, Net Banking Account, Bank Branch, UPI, RTGS or NEFT.
• Any of these payment methods can be used to pay taxes.
• Download e-invoice as soon as the payment is done. In addition, the Income Tax Department will send you postal and SMS notifications on tax payments.

The post Income Tax Update: The government has made some new rules regarding filling ITR which you need to know first appeared on Rightsofemployees.com.

In the new tax regime, the tax rates were reduced by eliminating the option of income tax exemption, but its benefit did not show and till now the number of taxpayers adopting the new regime is negligible. Keeping this in mind, the government is considering ending this system.

New Delhi. In the general budget to be presented on February 1 next year, the government can make a big announcement regarding personal income tax. A high official related to the matter says that in the budget of the financial year 2023-24, an announcement can be made to abolish the new tax regime. Under this, taxpayers get the option of lower tax rate, but the benefit of tax-exempt investment options ends.

According to media report , an official related to the matter said that the government had implemented the new tax regime in the financial year 2020-21. In this, taxpayers get the option of low rate tax slab. However, taxpayers who adopt this regime stop getting the benefit of tax exemption on any investment. Now that three years have passed since the introduction of the new tax regime, most of the taxpayers have adopted the old tax slab.

finance ministry now budget and is also reviewing the rules related to income tax. The official says that the purpose of the government regarding tax is to reduce the burden on the taxpayers. We introduced the new tax regime so that taxpayers with low tax brackets do not get burdened.

Why the new tax regime failed

Under the new tax regime, taxpayers have to pay tax on income above Rs 2.5 lakh. At the same time, income up to Rs 5 lakh in the old tax regime remains tax free. This is the biggest reason why taxpayers insist on adopting the old tax regime. About 75 percent of the taxpayers who file income tax returns every year fall in the income bracket of less than 5 lakhs and they get tax exemption up to Rs 5 lakhs. On the other hand, even though the rate of tax is lower in the new tax regime, there is no exemption in it at all. Only 1% of taxpayers who filed returns this year on the income tax web portal Clear had adopted the new tax regime.

Government should make something special

The high official said that the government will have to make some special plans regarding the tax exemption limit along with reducing the slab. People will also benefit from this and if more taxpayers file returns, then the tax collection in the government treasury will also increase. Actually, in the old tax regime from 2.5 to 5 lakhs, the tax rate is 5 percent, but as soon as your income goes above 5 lakhs, the tax rate increases to 20 percent, which remains the same till 10 lakhs. It does not seem logical in any way to suddenly increase the tax rate from 5 per cent to 20 per cent.

The post Income Tax Update: Government can abolish new tax regime, why step will have to be taken in three years? first appeared on Rightsofemployees.com.

The last date to file ITR is July 31 and the government has told that there is no idea to extend it. In such a situation, now you have only 5 days left, and if you have not yet paid the tax, then fill it immediately. Not only this, if you are going to file Income Tax Return (ITR), then keep in mind that it is mandatory to be verified, otherwise your filing will not be valid.

Verification is mandatory

As per income tax laws if the ITR is not verified within 120 days from the date of filing then it will not be considered valid. As per the rule you can verify this in six ways. Generally, audit of ITR-1, ITR-2 and ITR-4 is not required. Let us know in which ways ITR can be verified.

Know how you can e-Verify ITR

i through Aadhaar OTP
ii. By logging into the e-filing account through net banking
iii. EVC through bank account number
iv. Demat Account Number through EVC
v. EVC through Bank ATM
vi. How to e-Verify ITR through Aadhaar by sending signed copy of ITR-V through post to CPC, Bangalore

Step 1: Go to https://www.incometax.gov.in to access your e-filing account.

Step 2: Select e-verify return option under Quick Links.

Step 3: In this, select Verify using OTP on the mobile number registered with Aadhaar. Then click on e-Verify screen.

Step 4: Select ‘Agree to verify Aadhaar details’ as checked on the Aadhaar OTP screen. Then click on Generate Aadhaar OTP.

Step 5: After entering the 6-digit OTP sent to your Aadhaar-registered mobile number, click on Validate.

Step 6: Remember that this OTP is valid for 15 minutes only. You will be given three chances to enter the correct OTP. You will also see an OTP expiry countdown timer on the screen, which will notify you when the OTP is received. Whereas when you click on Resend OTP, a new OTP will be generated and you will get it.

Step 7: Now the page with the success message and Transaction ID will appear. Keep the Transaction ID safe for further use. A confirmation message will also be sent on the e-mail and mobile number that you have given on the filing portal.

The post ITR new guideline: Government has issued a new guideline for those who fill ITR, check immediately first appeared on Rightsofemployees.com.