The Income Tax Department has clarified that now there will be no exemption just by entering a lump sum amount. It will be necessary to provide detailed breakup for all deductions and details of related investments or expenses. The purpose of this is to stop wrong deductions and fake refund claims.

What changes have been made in tax deductions?

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Especially from FY 2025–26, this regime will suit most taxpayers more. With the changed slab rates, standard deduction and now the salary structuring facility being provided by the companies, it is possible to pay ZERO tax even on a salary of up to ₹ 19,20,000. How? Let us now understand in detail.

How will ZERO TAX be implemented?

From FY 2025–26, the slabs of the New Tax Regime have been changed and along with that companies are now making the salary structure tax friendly. The result is that even if your annual salary is up to ₹19.20 lakh, you can pay ZERO TAX by making sensible deductions and structuring.

New Tax Regime- FY 2025–26 Slabs

Keep in mind that under Section 87A, a tax exemption of ₹25,000 is available on taxable income up to ₹12 lakh, i.e. tax = ₹0

Real salary breakup of ₹19.20 lakh CTC

Suppose your company structures salaries like this.

Step-by-step calculation of taxable income

1. Standard Deduction – ₹75,000

₹19,20,000 – ₹75,000 = ₹18,45,000

2. Employer NPS Contribution – ₹84,000

(14% of Basic as per rules)
₹18,45,000 – ₹84,000 = ₹17,61,000

3. Flexi Pay  tax-free components – ₹6,23,600

₹17,61,000 – ₹6,23,600 = ₹11,37,400

4. Home Loan Interest + Rental Income Set-off – ₹2,60,000

If the house is a let-out:

• Interest Deduction: ₹2,00,000

• Rental Income Adjustment: ₹60,000

₹11,37,400 – ₹2,60,000 = ₹8,77,400

5. Other Deductions – ₹50,000

Let’s say:

• Gift exemption, family pension, or other miscellaneous

₹8,77,400 – ₹50,000 = ₹8,27,400 (Final Taxable Income)

Now understand the calculation of tax

What needs to be done for Zero Tax?

• Correct structuring of Flexi Pay

• Minimum PF (₹1,800/month)

• Employer NPS Contribution

• Home Loan Interest Benefit (with let-out)

• Other Income Adjustment + ₹50K exemption

The combination of all these makes your salary of ₹19.20 lakh tax free. You can request your HR to prepare your salary structure with a Flexi Pay plan. You can also increase your in-hand salary by opting for a minimum Provident Fund.

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Current Tax Slabs under New Tax Regime for Financial Year 2024-25

The new tax regime introduced in Budget 2020 offers lower tax rates along with fewer exemptions and deductions.

• For income up to Rs 3,00,000: Nil
• For income between Rs 3,00,001 and Rs 7,00,000: 5%
• For income between Rs 7,00,001 and Rs 10,00,000: 10%
• For income between Rs 10,00,001 and Rs 12,00,000: 15%
• For income between Rs 12,00,001 and Rs 15,00,000: 20%
• For income above Rs 15,00,000: 30%

This is the default tax regime. Under this regime, taxpayers can opt for lower rates but will have to forgo exemptions like HRA, LTA and deductions under sections 80C, 80D and others.

Standard deduction limit increased to Rs 75,000

However, taxpayers can avail standard deduction. In Budget 2024-25, the limit of standard deduction for salaried employees was increased to Rs 75,000. At the same time, it was increased to Rs 25,000 for family pensioners.

Current tax slabs under the old tax regime (for financial 2024-25)

The old tax regime, while retaining higher rates, allows taxpayers to claim various exemptions and deductions.

• For income up to Rs 2,50,000: Nil
• For income between Rs 2,50,001 and Rs 7,00,000: 5%
• For income between Rs 7,00,001 and Rs 10,00,000: 10%
• For income between Rs 10,00,001 and Rs 12,00,000: 15%
• For income between Rs 12,00,001 and Rs 15,00,000: 20%
• For income above Rs 15,00,000: 30%

For senior citizens aged 60-80 years, the basic exemption limit is Rs 3,00,000. For super senior citizens, i.e. those above 80 years, it is Rs 5,00,000.

• The old tax regime allowed tax deductions under various sections, such as:
• Under Section 80C, you can save tax on an amount up to Rs 1.5 lakh through investments like PPF, ELSS and LIC premium.
• Deduction on health insurance premium under section 80D
• Under Section 24(b), a deduction of up to Rs 2,00,000 can be claimed on interest paid on home loan.
• Other exemptions like HRA and LTA

How to choose the right tax regime

Choosing between the new and old tax regime will be beneficial for you, depends on your financial profile. The new tax regime is more suitable for those who invest very little. On the contrary, the old tax regime is suitable for those taxpayers who invest wisely and know how to take maximum advantage of the exemptions and deductions available on it.

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Former Infosys CFO Mohandas Pai has also appealed to Prime Minister Narendra Modi and the Finance Minister to provide relief to the middle class. He has demanded changes in the tax slab and reduction of the increasing burden on taxpayers.

Demand for change in tax slab

Mohandas Pai says that the current tax slab is becoming a burden on the middle class. He has suggested that it needs to be reduced and adjusted. He has given some advice regarding this.

There should be no tax on income up to Rs 5 lakh.

• 10% tax on income up to Rs 5-10 lakh.
• 20% tax on income up to Rs 10-20 lakh.
• 30% tax on income above Rs 20 lakh.
• Surcharge on income above Rs 50 lakh.

Apart from this, it has been said to give exemption on income up to Rs 7.5 lakh to citizens above 60 years of age and Rs 10 lakh to citizens above 70 years of age.

Tax burden on the middle class

Mohandas Pai says that the middle class has the highest tax burden. Personal tax collection has increased by 114% in the last three years, but no relief has been given to the income and savings of the middle class. After inflation, rising school-college fees and essential expenses, the middle class does not have money left for other expenses.

Demand for relief on housing loan

He said that the deduction on housing loan benefits only those people who take the loan. This service is available to only 1.2 crore out of 3.5 crore taxpayers. He suggested that such schemes should be brought in the budget so that the middle class has more money to spend.

Tax disputes should be resolved

Mohandas Pai also demanded an end to tax disputes. He said that the disputed tax amount was Rs 4.5 lakh crore in 2014, which has increased to Rs 12.5 lakh crore by 2025. This is the failure of the Income Tax Department and the government. He appealed to declare 2025-26 as the tax dispute resolution year.

The middle class should not be ignored

He said that the government spends more than Rs 9 lakh crore on subsidies for the poor section, but the problems of the middle class are not paid attention to. He stressed the need to provide relief to the middle class and remove their resentment. The middle class has a lot of expectations from Budget 2025. Now it remains to be seen what steps the government takes for the middle class in this budget and how much it solves their problems.

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After this change, now under the New Tax Regime, those earning Rs 7.75 lakh annually will not have to pay even a single rupee tax, but if your salary is Rs 10 lakh, then let us know how you can save tax on your entire income and will not have to pay even a single rupee tax.

You won’t have to pay a single rupee tax on earning 10 lakhs

If you want to save the entire amount on earning 10 lakhs, then you will have to leave the new tax regime and choose the option of old tax regime, in which many types of exemptions will have to be claimed, but if you do not claim tax exemption, then according to the tax slab under the old tax regime, you will have to pay 20 percent tax. However, if you claim tax exemption, then you can save the entire tax on earning 10 lakhs.

Also Read: Public Special Scheme: Deposit only ₹ 100 daily, you will get a return of up to 8 lakhs after so many years

How can you save tax in the old tax regime? 

• Under the old tax regime, a rebate of up to Rs 50,000 is available as standard deduction. In such a situation, now tax will be levied on Rs 9.50 lakh. 
• By investing in schemes like PPF, EPF, ELSS, NSC, you can save tax of Rs 1.5 lakh under Income Tax Section 80C. Now you will have to pay tax on Rs 8 lakh. 
• If you invest up to Rs 50,000 annually in the National Pension System (NPS), then under section 80CCD (1B) you are given an extra tax exemption of Rs 50,000. Now if you deduct another Rs 50,000, then tax will be levied on Rs 7.50 lakh. 
• If you have taken a home loan, you can save up to Rs 2 lakh on the interest under Section 24B of Income Tax. If you subtract another Rs 2 lakh from Rs 7.50 lakh, the total tax income will be Rs 5.50 lakh. 
• You can save tax up to Rs 25,000 by taking a medical policy under section 80D of income tax. This health insurance should have your name, your wife’s name and your children’s name. Apart from this, if you buy health insurance in the name of your parents, you can get an extra deduction of up to Rs 50,000. 
• In such a situation, if you subtract 75 thousand from 5.50 lakh, then the total tax liability will be 4.75 lakh, which will be below the old tax regime limit of Rs 5 lakh. This means that you will not have to pay a single rupee tax on an annual income of 10 lakh. 

How much tax will have to be paid on earning 10 lakhs in the new tax regime?

Even though Finance Minister Nirmala Sitharaman has changed the tax slab in the new tax regime and increased the standard deduction, you will still have to pay tax on earning 10 lakhs. You cannot avail tax exemption by investing under the new tax regime. In such a situation, let us know how much tax will have to be paid if your income is Rs 10 lakh annually and you choose the new tax regime? 

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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. 

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The deadline for filing income tax for the financial year 2023-24 is July 31. There is a lot of confusion among taxpayers about the old tax regime and the new tax regime. There are many questions in the mind of every salaried class regarding this. Which we are going to talk about here. First of all, let us tell you that under the current Income Tax Act, taxpayers are being allowed to choose either the Old Tax Regimes or the New Tax Regimes for tax deduction on salary. This option is applicable for the entire financial year.

From April 1, 2023, if an individual taxpayer has not opted for the old tax regime, his employer will deduct tax from his salary based on the new tax regime. This is because the new tax regime has been implemented as the default option from the financial year 2023-24. At the same time, no changes have been made in the Income Tax Rules in the Interim Budget 2024. Therefore, the new tax regime will remain the default option for the current financial year 2024-25 as well.

For which taxpayers will the new tax regime apply by default?

According to the Income Tax Department website, the default option of the new tax regime for deduction of tax on salary will be applicable for:

• Individuals
• Hindu Undivided Family (HUF) (except co-operative society)
• BOI
• Artificial Juridical Person

Is it possible to switch tax regime while filing ITR?

It is possible to switch to Old or New Tax Regime while filing ITR. You can select this option while filing your Income Tax Return (ITR Filing). You have to select a checkbox for Old or New Tax Regime and provide details of the same in Form 10IE.

According to the income tax website, if you want to opt for the old tax regime and you are eligible to file returns in ITR 1 and 2, then directly choose the 
corresponding option in ITR and file the return within the prescribed due date. If you are eligible to file returns in ITR 3, 4 and 5, then you must file Form 
10-IEA before the due date under section 139(1).

In the ITR form, the person is asked "Do you wish to opt out of the new tax  regime under section 115BAC(6)? (Default is No)". If you choose no, your tax 
liability will be as per the new tax regime slabs. While choosing yes means that you are opting for the old tax regime. In such a case, you will pay tax as per
 the income tax slabs under the old tax regime.

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Modi government can give good news to crores of taxpayers in its third term. The government can increase the limit of 80C from Rs 1.50 to Rs 3 lakh. Many taxpayers choose section 80C as their preferred tax saving option. Under Section 80C of the Income Tax Act 1961, if individuals opt for the old tax regime, they can avail a maximum deduction of Rs 1.5 lakh for the financial year 2024-25. Those who opt for the new tax regime are not eligible to avail this deduction.

The limit was increased in the year 2014

In 2014, the then Finance Minister Arun Jaitley increased the 80C benefit limit to Rs 1.5 lakh per annum. This change was one of the major forms of relief given by the government in its first budget. However, there has been no change in the 80C limit since then. This marks a decade since the last increase in 2014. Every year many taxpayers hope that the Finance Minister will increase the Section 80C limit in the Union Budget 2024. Many believe that the 80C limit has not increased in line with income and costs. Due to this difference, many taxpayers use the entire 80C limit to save tax.

Also Read: Top 10 countries with the most ultra wealthy individuals

What is the benefit of Section 80C?

The maximum tax deduction allowed to taxpayers under Section 80C is Rs 1.5 lakh. However, taxpayers can invest in one or more savings schemes to save tax. Deductions under Section 80C are available only to individuals and Hindu Undivided Families (HUFs). Taxpayers can claim deductions for investments in savings schemes or for payments of investments and expenses falling under the 80C category.

Why should the Section 80C limit be increased?

A person’s taxable income is calculated by deducting the 80C deduction from his total income. Any change in the Section 80C deduction limit directly affects a person’s taxable income. Taxpayers will get the direct benefit of this. The cost of many people has increased. Salaries have increased, but the benefits of Section 80C have not kept pace. Due to this, many people take full advantage of 80C. That is why increasing the limit in Section 80C is always the first priority for taxpayers before the budget every year.

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The salaried class is expecting the Standard Deduction to increase over a period of time. It has been almost five years since the standard deduction was revised. The standard deduction was last changed in the year 2019. The budget of 2024 will be only an interim budget and the Finance Minister has already said that there will be no major announcements in the budget. There are reports that the government may increase the standard deduction to Rs 90,000 in the budget.

Will the standard deduction increase to Rs 90,000?

Currently the standard deduction limit is Rs 50,000. Many tax experts believe that this will now increase to Rs 90,000. That is, the government can increase this limit from Rs 50,000 to Rs 90,000 in the interim budget. If this happens, it can prove to be a big saving for taxpayers.

What is standard deduction?

Standard deduction is a flat deduction the salaried class can avail of from taxable income without showing any expenditure or saving. Its objective is to achieve parity between taxpayers who receive income through salaries and income from business. Last year, the government also added standard deduction to the new tax regime. At present, standard deduction is available in both the old tax regime and the new tax regime.

This is the history of standard deduction

Standard deduction was first introduced in India in 1974. According to the history of standard deduction, this deduction is given to salaried class and pensioners to cover their expenses. It was removed in 2004–2005 to simplify taxation. It was then re-introduced in the Union Budget in 2018 and fixed at Rs 40,000 for salary class employees and pensioners.

In the interim budget presented on 1 February 2019, the standard deduction limit was increased to Rs 50,000. However, this was limited to the old tax system. In Budget 2023, it was combined with the new tax regime. Standard deduction of Rs 50,000 was allowed in the new tax regime. Now this is available on both new and old tax regime.

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But do you know that you are getting the benefit of 6 types of exemptions under the old tax regime. Along with this, in the new tax regime, you are getting the benefit of tax exemption on annual income up to Rs 7 lakh.

Rs 33,800 will be saved

After increasing the exemption under the new income tax regime through the Finance Minister, taxpayers with an annual income of up to Rs 7 lakh will save Rs 33,800 in tax.

Benefits of income tax There are some benefits in the new tax regime, but there is no exemption on any investment. However, standard deduction has definitely been added to the new tax regime. On the other hand, if you want investment or other exemption, then you will have to file tax according to the old tax regime. Many exemptions are available in the old tax regime. Today we are going to tell you about it…

These exemptions will be available in the old tax regime –

1. Standard Deduction – For salaried individuals, the benefit of exemption of Rs 50000 will be available

2. Section 80 CCD (1B) – Additional deduction of up to Rs 50,000 will be available for the amount deposited in NPS account.

3. Section 80TTA – This section provides a deduction of a maximum of Rs 10,000 on interest income from savings account of a bank, co-operative society or post office for an individual or a HUF.

4. Section 80D – It allows deduction on health insurance premium.

5. Section 80G – Donations made to eligible trusts and charitable institutions are eligible for deduction.

6. Section 80C – Invest in EPF & PPF, ELSS, life insurance premium, home loan repayment, SSY, NSC & SCSS and get exemption.

If you do not select, you will be part of the new tax regime.

Let us tell you that taxpayers have to pay their income tax by July 31, 2023. Meanwhile, if you do not select any of the new and old tax regime, then your TDS will be deducted under the new tax regime.

CBDT gave information

that the matter has been cleared from a circular of the Central Board of Direct Taxes. It said, “If the intimation is not given by the employee, it shall be deemed that the employee continues to be in the default tax regime and has not exercised the option to opt out of the new tax regime. In such case the employer shall deduct tax at source on the income under section 192 of the Act, at the rates provided under sub-section (lA) of section 115BAC of the Act.”

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To continue the election of Old Tax Regime, the Central Board of Direct Taxes (CBDT) has issued new rules for Consultants and Professionals. With the change in tax slab rates from the financial year 2023-24, the Finance Ministry has kept the new tax regime as default. In such a situation, to continue getting the benefits of the old tax regime, consultants and professionals will have to compulsorily fill Form 10-IEA (FORM 10IEA). The release of this form by CBDT has brought great relief to the consultants and professionals.

The Central Board of Direct Taxes (CBDT), while issuing a notification, has issued a guideline for consultants, professionals with business income to continue the old tax regime from the current financial year i.e. FY 2023-24. It has been said in the notification that it is important to note that Budget 2023 has made the new tax regime a default tax regime. This means that in the current financial year 2023-24 (i.e. between April 1, 2023 and March 31, 2024), income will be taxed at the new income tax slab rates under the new tax regime. However, taxpayers have the option to opt for the old tax regime.

Naveen Wadhwa, DGM Chartered Accountant of Taxman.com, says that CBDT has issued new Form 10-IEA (FORM 10IEA), which consultants, professionals will have to fill to continue the old tax regime from FY 2023-24. He said that this form will allow to continue with the old tax regime, claim tax exemption and deduction.

From the financial year 2023-24, the new tax system has become the default tax system. Consultants, professionals who want to continue with the old tax regime in this financial year have to opt for it. Once he has opted for the old tax regime, he will have the option to switch to the new tax regime only once in his life. Naveen Wadhwa said that if the consultants and professionals opt for the new tax regime once, then they will not be able to opt for the old tax regime again.

As per the income tax rules, salaried taxpayers can switch between the two tax regimes as per their choice. But consultants and professionals cannot do this.

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In the case of individuals, the tax is not levied at a flat rate but as per the slab system. People have to file income tax return and pay applicable tax if their income exceeds the minimum limit.

Income tax return

In the old tax regime, the income tax slab for the common people has been divided into three categories. These include people below 60 years of age, people between 60 and 80 years of age and people above 80 years of age. However, there is nothing like this in the new tax regime. At the same time, people have to file income tax returns according to different tax slabs.

While tax slabs

file income tax returns according to the new and old tax regime, people have to file different taxes on different incomes. However, 5% tax is also paid according to the income of the people. The rate of 5 percent is the lowest tax rate in the income tax slab.

Old Tax Regime – New Tax Regime

If a person files income tax return according to the old tax regime and the age of that person is less than 60 years, then that person can get income from Rs. 2.5 lakh per annum to Rs. 5 lakh per annum. 5% tax will have to be paid. On the other hand, if a person files income tax return from the new tax slab and the income of that person is between Rs 3 lakh to Rs 6 lakh annually, then that person will have to pay 5% income tax.

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These include New Tax Regime and Old Tax Regime. While filing tax in both the tax systems, different tax slabs have been given, according to which tax has to be filed.

Income tax return

While presenting the Union Budget 2023, Finance Minister Nirmala Sitharaman had announced several changes in income tax. Under these changes, the tax regime was also changed. Along with this, the income tax slabs were also changed. While announcing the change in the new tax regime, the Modi government has kept zero tax up to Rs 3 lakh.

ITR

After this, people will have to pay 5% tax on income of Rs 3-6 lakh annually. On the other hand, if someone’s income is 6-9 lakh rupees, then these people will have to pay 10% income tax. If someone’s annual income is Rs 9-12 lakh, then these people will have to pay 15% tax. After this, those people whose income is 12-15 lakh rupees, then those people will have to pay tax of 20%. Apart from this, people whose income is more than Rs 15 lakh will have to file 30% tax.

Old tax regime

On the other hand, if we talk about the old tax regime, then individual taxpayers below the age of 60 years will not have to pay any tax up to Rs 2.5 lakh. After this, these people will have to pay 5% tax on annual income of Rs 2.5 to 5 lakh. At the same time, 20 percent tax will have to be paid on the annual income of Rs 5-10 lakh. On the other hand, those whose income is more than Rs 10 lakh annually, they will have to pay tax of 30 percent.

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However, what happens if a taxpayer is unable to choose between the new and old tax regimes? Regarding this, now a notification has also been issued by the government department.

Income Tax

Now the Central Board of Direct Taxes (CBDT) has issued a new notification regarding the new tax regime. It states that if an employee fails to choose between the new and old tax regime, the employer will default to the new income tax regime and deduct tax deducted at source (TDS) under it. According to Finance Minister Nirmala Sitharaman, the new tax regime will be in default from the financial year 2023-24. Under this, CBDT has issued a circular regarding TDS deduction.

The Income Tax Regime

Notification states, “If the information is not furnished by the employee, it shall be presumed that the employee continues to be in the default tax regime and has not exercised the option to opt out of the new tax regime.” In this case the employer shall deduct tax at source on the income under section 192 of the Act at the rates provided under sub-section (lA) of section 115BAC of the Act.”

Tax It is the responsibility of the employer to ask the employee for information regarding the desired tax regime and after obtaining the information, deduct tax accordingly. In such a situation, let us know the difference between the new and old tax regime…

Under the new tax regime, the basic exemption limit has been increased to Rs 3 lakh. The amount of exemption under section 87A has been increased to a taxable income of Rs 7 lakh. A standard deduction of Rs 50,000 has also been introduced in the system. Salaried employees and pensioners can opt for standard deduction of Rs 50,000 under the new income tax regime.

Old Tax Regime

Those who want to continue with the old income tax regime will get exemptions like Section 80C, which can bring down the taxable income by up to Rs 1.5 lakh. There has been no change in the tax slab and basic exemption limit. The old tax regime also offered deductions on loans and health insurance premiums. Those who want to opt for the old tax regime will have to indicate the same every year.

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In such a situation, now you have to tell your employer in advance that you would like to file tax in any regime. If you do not choose any tax regime yourself, then your ITR will automatically be filed in the new tax regime. Apart from this, the tax slab of the new tax regime has also been changed.

Now there are only six slabs in the new tax regime. Currently the highest tax rate in India is 30% and surcharge and education cess are also levied on it. These tax slabs decide who will pay how much tax on how much income. Let us see who will have to pay maximum tax in the old and new tax regime.

Old vs New Tax Regime: Income Tax Slab for AY2023-24

Who will have to pay maximum tax under the old tax regime?

In the old tax regime, the highest tax rate is for those earning above 10 lakhs. If your income is above 10 lakhs and you choose old tax regime, then you will have to pay tax at the rate of 30%. In the old tax regime, all such individual taxpayers in the age group of 60 years to 80 years come under 30%, whose income is above 10 lakhs.

Who will have to pay more tax in the new tax regime?

The highest rate in the new tax regime is also 30%. But this tax rate is for those above 15 lakhs. That is, if your annual income is above 15 lakhs, then 30% of your income will be taxed. In the old tax regime, where people above 10 lakhs pay more than 30% tax, in the new regime, 10% tax is levied on those above 10 lakhs to 12 lakhs, and 20% on the income from 12 lakhs to 15 lakhs. Taxes apply.

How much will be the surcharge?

Surcharge is a separate charge on income tax, a surcharge is levied on the income which is calculated according to the tax rate.

– 10% – ₹50 Lakh – ₹1 Crore
– 15% – ₹1 Crore – ₹2 Crore
– 25% – ₹2 Crore – ₹5 Crore
– 37% – Above ₹5 Crore

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In such a situation, CBDT has issued a circular regarding the modalities of TDS deduction in 2023-24, in which it has been said that from the current financial year, the new income tax regime has become the default tax regime. In such a situation, the CBDT has told the employer that he must ask his employees whether they want to opt for the new tax regime or the old tax regime. All employees will have to inform their employer at the beginning of every financial year whether they want to opt for the new tax regime or the old tax regime.

CBDT has said in its circular that it is necessary to choose the option of new income tax regime or old income tax regime because on the basis of that the employer will deduct TDS on the income of the employee.

The Central Board of Trustees has clarified that if an employee does not inform this to his employer, then the default tax regime on that employee, which is the new tax regime, will be valid and TDS will be deducted from his income on the basis of that. In such cases, the employer will have to deduct TDS under section 192 on the income of the employee as per the tax rate of the new income regime.

Presenting the general budget for 2023-24, Finance Minister Nirmala Sitharaman had announced that the new tax regime will be considered as the default tax regime from the new financial year. The tax rate in the new income tax regime is lower than the old tax regime.

But in the new tax regime, no deduction is available on home loan interest and investment. Whereas in the old income tax regime, you can get tax exemption on Mediclaim by taking exemption on investment and home loan interest.

However, salaried taxpayers will have the option to choose either the new or the old tax regime while filing income tax returns, even if they have informed the employer to choose another option. Salaried taxpayers will have the option to choose either the new or old income tax regime every year. Whereas those who get income from business or profession can change the option of tax regime from one tax regime to another only once.

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However, by opting for the old tax regime, investors will get the benefit of tax saving as before. Investment experts are looking at investing in FDs as a better option, because banks have increased the interest rates on FDs to a great extent, which have crossed even 9 per cent. The trend of investors in FD is also increasing because there is no risk of sinking the amount invested in it and guaranteed returns are available.

Interest rate up to 9.01 percent on Fincare Small Finance Bank FD

Fincare Small Finance Bank is giving investors the opportunity to invest in FDs of tenure ranging from 7 days to 66 months. According to the bank, the bank is giving 8.11 percent interest rate to ordinary citizens on FDs maturing in 750 days. At the same time, 8.71 percent interest rate is being given to seniors on FD of 750 days.

Similarly, Fincare Small Finance Bank is giving an interest rate of 8.41% to ordinary citizens on FDs maturing in 1000 days. Whereas, the highest interest rate of 9.01 per cent has been offered to senior citizens on the same tenure. The bank’s FD interest rates have been made effective from 24 March.

9.50 percent interest rate on Unity Small Finance Bank FD

Unity Small Finance Bank is offering FD of tenure ranging from 7 days to 10 years to its customers. The bank has increased the interest rates on FDs of all tenures from 15 February. Unity Small Finance Bank is paying 9.25% interest to senior citizens and 8.75% to general customers on 181-201 days and 501 days fixed deposits.

Small Finance Bank is giving 9.00 percent interest rate to general customers on investment for 1001 days, while on the same tenure it has offered 9.50 percent interest rate to senior citizens. The interest rates of the bank were revised on 15 February.

Investing in small banks will not harm your money

Small Finance Banks (SFBs) are offering the highest interest rates ranging from 8 per cent to 9 per cent on Fixed Deposits (FD) to common citizens. At the same time, for seniors, these interest rates are being given up to 9.50 percent, which is the maximum.

Remember that deposits under small finance banks are also covered by Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance. This means that your FD deposit amount up to Rs 5 lakh is covered under the insurance scheme. If the Small Finance Bank collapses or is placed under moratorium, then your money is not lost.

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However, this benefit will be available only to those opting for the new tax regime. The Finance Minister has raised the income tax exemption limit to Rs 7 lakh in the new tax regime, which was earlier Rs 5 lakh. While under the old tax regime, income up to Rs 2.5 lakh was tax free.

However, in the old tax regime, there is a provision for Standard Deduction and many exemptions in other items. These benefits were not given in the new tax regime. But this time standard deduction has also been included in the new tax system. A taxpayer can claim up to Rs 50,000 for standard deduction, while every salaried individual with an income of Rs 15.5 lakh or more is entitled to Rs 52,500 as standard deduction. Under the new tax regime, the basic exemption limit has been increased to Rs 3 lakh.

What is standard deduction?

Standard deduction is the deduction that is deducted from the income of the income tax payer and after that tax is calculated on the remaining income. Salaried employees and pensioners are already getting the facility to avail tax exemption through standard deduction. Suppose the annual income of a person doing a job is Rs 8 lakh. In such a situation, if the benefit of standard deduction up to Rs 50,000 is available in the total package, then their tax will be calculated on Rs 7,50,000 instead of Rs 8 lakh.

Standard deduction was introduced in the budget of the year 2018. Earlier its limit was Rs 40,000, which was increased to Rs 50,000 the next year. The purpose of starting this is to give more money to the employees by giving them tax exemption.

Who can avail it Standard deduction can be availed by salaried employees and pensioners who have not opted for the new tax rules. There is a provision of lower tax rate in the new rules. Apart from this, pensioners taking pension are also entitled to get this deduction. But standard deduction is not available on family pension. This means that if any of his dependents is taking family pension after the death of an employee, then he is not entitled to this deduction or exemption.

No effect of change of job

Change of job has no effect on standard deduction exemption. Total salary here includes all the components of salary paid by the employer and all the taxable portion of all allowances and perks. Even if an employee changes his job during the year, he is entitled to get the benefit of standard deduction.

Income tax slabs

The number of income tax slabs has been reduced to 5. Announcing the new tax slab on personal income, Sitharaman said that those earning Rs 3 to 6 lakh annually will have to pay 5% tax. The rate of income tax will be 10% on income of 6 to 9 lakh rupees. Rs 9 lakh to Rs 12 lakh will be taxed at 15%, Rs 12 lakh to Rs 15 lakh at 20% and income above Rs 15 lakh will be taxed at 30%.

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Senior citizens can file their Income Tax Returns under Old Tax Regime or New Tax Regime. Both the options will be available when they go to file ITR for assessment year 2023-24. There is no change in this regard. However, the new tax regime will appear as the default regime on the e-filing website. Senior citizens will also have the option of going for the old tax regime.

Which tax slab and rate will be applicable?

If you are filing ITR this year (for Assessment Year 2023-24 or Financial Year 2022-23), then the applicable tax slab and return filing rates will be the same as last year.

Tax slabs and rates for senior citizens-

New Tax Regime Slabs and Rates for ITR Filing in AY2023-24 (FY 2022-23) Rs
0 to
Rs 2.5 Lakh – Rs 0 to Rs 2.5 Lakh – 5% Above Rs 2.5 Lakh Rs
5 Lakh to Rs 7.5 Lakh – 12,500 Rs.5 lakh + 10% above
Rs.7.5 lakh to Rs.10 lakh – Rs.37,500 + 15% above Rs.7.5
lakh Rs.10 lakh to Rs.12.5 lakh – Rs.75,000 + 20% above Rs.10 lakh from
Rs.12.5 lakh 15 Above Rs.15 lakhs – Rs.1,25,000 + 25% above
Rs.12.5 lakhs Above Rs.15 lakhs – Rs.1,87,500 + 30% above Rs.15 lakhs

Old Tax Regime Slabs and Rates for ITR Filing in AY2023-24 (FY2022-23) Rs.3 Lakh-
0 Rs.3-5 Lakh-
5% Above Rs.3 Lakh Rs.5-10 Lakh- Above
Rs.10,000 + Rs.5 Lakh 20%
above Rs 10 lakh – Rs 1,10,000 + 30% above Rs 10 lakh

New Tax Regime Slabs and Rates for ITR Filing in AY2024-25 (FY 2023-24)- Rs
0-3 Lakh- 0
Rs 3-6 Lakh- 5%
Rs 6-9 Lakh- 10% Rs
9-12 Lakh- 15%
Rs 12-15 lakh – 20% Above
Rs 15 lakh – 30%

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If we talk about small income ie Rs 6 lakh per annum, then in the old tax regime, if you do not make any tax saving investment, then you will have to pay income tax of Rs 23,400 on this much income. But, if you adopt the new tax regime, then your Rs 6 lakh will be completely out of the tax net. That is, you will directly save tax of Rs 23,400.

If a person earns Rs 10 lakh annually, then under the new regime, he will have a total tax liability of Rs 54,600. On the other hand, if you choose the old tax slab, then you will have to pay tax of Rs 78,000 on this much income. In this way, you can save tax of Rs 23,400 under the new slab.

If you earn 50 lakh rupees annually, then you will reach the high bracket of 30 percent and according to the new tax regime, there will be a tax liability of Rs 12,32,400. For those adopting the old bracket, income tax of Rs 12.87 lakh will be made on earning Rs 50 lakh. That is, now you will be able to save Rs 54,600 in the new tax regime as compared to the old one.

If someone’s earning is Rs 1 crore annually, then his income will be included in the high tax bracket ie 30 per cent slab. Rs 30,71,640 will be taxed on this income if you adopt the new tax regime. At the same time, the total tax liability will come to Rs 31,31,700 on those who are associated with the old system. That is, in the new system, now you can save income tax of Rs 60,060 as compared to the old one.

How much liability is 2 crores If a person earns 2 crores annually, then the highest tax rate of 30 percent will be applicable on him. Surcharge will also be imposed on this. Thus the total tax liability will be Rs 67,99,260, if you opt for the new tax regime. On the other hand, those adopting the old tax regime will have to pay a total income tax of Rs 68,62,050. In this way you will directly save Rs 62,490.

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But the announcement made by the Finance Minister for the tax payers is a bit complicated. Finance Minister Nirmala Sitharaman announced that there will be no tax on income up to Rs 7 lakh. But in reality this change has been made in the new tax regime. While no change has been made in the old tax regime.

The government promoting the new tax regime,

if you have already claimed income tax exemption under the old tax regime, then you have not benefited in any way. But if you have claimed till the financial year 2022 under the new tax regime, then you will get a direct benefit. That is, the benefit of this tax regime will be for those with higher salary. The Finance Minister said during the budget speech that now the default new tax regime will remain. Actually, the new tax regime is being promoted continuously by the government, under which this change has been made.

Understand the old tax regime

if you have selected the boy default new tax regime, then it will be heavy on your pocket and you will have to pay tax accordingly. You cannot claim any kind of tax exemption in the new tax regime. Whereas in the old tax regime, Rs 2 lakh can be claimed under 80C and NPS, Rs 2 lakh on home loan interest, medical insurance of Rs 25,000 under 80D and checkup of Rs 5,000. Apart from this, you can claim medical insurance premium of up to 50 thousand for senior citizens. Apart from this, standard deduction of 50 thousand rupees is also available in it. That is, you do not have to pay any tax on income up to Rs 10 lakh in this.

Understand the change of the new tax regime

the benefit of selecting the new tax regime will be only for those people whose annual income is up to Rs 7 lakh. You will have to pay tax as soon as you go above this. That is, if you have bought your own house and invest in a savings scheme, then the old regime is still beneficial for you. The Finance Minister has said that no tax will be levied on income up to Rs 7 lakh. But if your income is more than 7 lakhs, then you will not have to pay any kind of tax up to three lakh rupees. From three to six lakhs you will have to pay 5 percent tax and from 6 to 9 lakhs you will have to pay 10 percent tax.

Now this will be the tax calculation in the new tax regime

On income up to 0 to 3 lakh – zero tax
Income from 3 to 6 lakhs – 5% tax
Income from 6 lakh to 9 lakh – 10% tax
9 lakh to 12 lakh-15% tax
12 lakh to 15 lakh – 20% tax
30% income tax on above 15 lakhs

Old tax regime

Income up to 2.5 lakh – zero tax
Income from 2.5 lakh to 5 lakh – 5% tax
Income from 5 lakh to 10 lakh – 20% tax
Income from 10 lakh to 20 lakh – 30% tax
Income above 20 lakh – 30% tax

According to the Finance Minister, this time when you will pay income tax through the Income Tax website, you will get boy default new regime selected from old and new tax regime. Earlier, the old tax regime boy was selected by default. Here you have to be careful in the selection of tax regime.

If your income is more than 7 lakhs and you invest in different schemes, then you will have to continue the old tax regime. If you have left the new tax regime selected here, then you will have to pay heavy tax.

The post Big news for Tax Payers! You will not get tax exemption of up to 7 lakhs due to this one mistake of yours! first appeared on Rightsofemployees.com.

However, before this, Aham is going to tell you a special thing about the budget. Income tax Whoever’s income is taxable, he has to file income tax in the country. There are currently two tax systems in the country. The name of one is Old Tax Regime, while the name of the other is New Tax Regime. In both the tax systems, different taxes are paid on different incomes. At the same time, a special thing is also hidden in both these income tax slabs.

Income Tax Slab

Under the financial year 2022-23, many slabs have been given in the New Tax Regime in the country. There are 5 percent, 10 percent, 15 percent, 20 percent, 25 percent and 30 percent slabs on the basis of income. Income tax is filed on different income according to different slabs. If tax is filed under this slab, then no exemption is also available.

On the other hand, on the basis of tax slabs for the financial year 2022-23, if the Old Tax Regime is seen, then the difference will be seen in it. In Old Tax Regime, tax is collected at the rate of 5%, 20% and 30%. In such a situation, it is to be noted that there is no slab of 10% in the Old Tax Regime. In this, after 5%, income tax is collected directly at the rate of 20%.

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According to these tax slabs, people have to pay tax on their income. On the other hand, after a few weeks, the budget is also going to be presented by the central government. Every year taxpayers expect that the government should give concession regarding income tax in the budget. However, now before the budget, it is very important for the tax payers to know one important thing. The Union Budget is presented through the Finance Minister.

Tax Actually, for the financial year 2021-22, tax is being collected by the government according to two slabs. There is a New Tax Regime and the other is the Old Tax Regime. The rate of tax charged on income in both the slabs is different. In such a situation, 20 percent income tax is also collected by the government on different incomes. Here we are going to tell you that on how much income 20% tax is charged in New Tax Regime and on how much tax is charged in Old Tax Regime.

20 percent tax 

Tell that if income tax is to be filed according to the New Tax Regime, then if there is an income of Rs 10 lakh to Rs 12.5 lakh annually, then 20 percent tax has to be paid on it. However, if income tax is to be filed according to the Old Tax Regime, then 20% tax will have to be paid on income from Rs 5 lakh per annum to Rs 10 lakh per annum.

The post Income Tax Slab: Big News! Heavy tax of 20% will have to be paid on this much income first appeared on Rightsofemployees.com.

This will be the last full budget of the government before the 2024 Lok Sabha elections. That’s why the government’s effort is also to please everyone from the salaried class to the farmers. On the other hand, every section is pinning a lot of hopes on the Modi government. In the last few years, the Modi government has made many changes regarding the budget. A change in that was made by the government keeping in mind the tax payers. But even today the situation regarding it is not clear among many people.

The claim of tax exemption in 7-10 ways in the old tax regime

was a change in the alternative income tax system introduced by the government in the General Budget 2020-21. The system of new tax regime and old tax regime was started in 2020-21 by Finance Minister Nirmala Sitharaman. Tax pair has to select any one of these two. Meanwhile, Finance Minister Nirmala Sitharaman said on Friday that people of low income group can claim tax exemption in 7-10 ways in the old tax regime.

Government brought another tax system

in 2020 Actually, the ‘New Tax Regime’ introduced in 2020 is different from the traditional tax system (Old Tax regime) that has been running since independence. In the old tax regime, you can claim various types of deductions including 80C, 80D, HRA. But you cannot claim any kind of deduction in the new tax slab. Finance Minister Nirmala Sitharaman also said that in 2020, the government brought another system with the old tax regime. There is no exemption in this, but it is simple and the tax is less. The Finance Minister said that I had to make seven slabs so that there are low rates for the people of low income group.

Income up to Rs 2.5 lakh tax free

In the new tax regime, income up to Rs 2.5 lakh is tax free. After this, 5 percent on income from 2.5 lakh to 5 lakh rupees, 10 percent on income from 5 lakh to 7.5 lakh rupees, 15 percent on income from 7.5 lakh to 10 lakh rupees, on income from 10 lakh to 12.5 lakh rupees. 20 per cent, 25 per cent on income between Rs 12.5 lakh to Rs 15 lakh and 30 per cent on income above Rs 15 lakh.

It is also important to understand this tax system.

Similarly, under the old tax system, income up to Rs 2.5 lakh is tax free. After this, 5 percent tax is levied on income between Rs 2.5 lakh and Rs 5 lakh. Income between Rs 5 lakh and Rs 10 lakh is taxed at 20 per cent and income above Rs 10 lakh and above is taxed at 30 per cent. Sitharaman said that the benefits of the old tax regime have not been removed, rather the new exemption-free tax regime is an alternative form of the income tax return system.

Old Tax Regime

Income up to 2.5 Lakh—-0% Tax
Income up to Rs 2,50,001 to 5 Lakh—-5% Tax Income
up to Rs 5,00,001 to 7.5 Lakh—-20% Tax
7 Income
from Rs.10,00,001 to Rs.10 lakhs —-20%
tax
30% tax on income above Rs.

New Tax Regime

Income up to 2.5 lakhs—-0% tax
Income from 2,50,001 to 5 lakhs—-5% tax
Income from 5,00,001 to 7.5 lakhs—-10% tax
7 Income
from Rs.10,00,001 to Rs.10
lakh—–15%
tax 30% tax on income above Rs.

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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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Along with this, middle class people are also expected to get tax exemption in this budget. However, before the budget, we are going to tell you under which slab at present income tax is paid.

Income Tax At present, income tax is paid in India under two tax systems. The name of one is Old Tax Regime and the name of the other is New Tax Regime. In both these systems, tax is collected according to different slabs. If we talk about the financial year 2022-23, then in this financial year, 5% to 30% tax is collected on different incomes. At the same time, there is an important thing about 10 percent tax which people should know.

Income Tax Slab Actually, if a person files tax according to New Tax Regime and his income is between Rs 5 lakh to Rs 7.5 lakh annually, then he will have to pay 10% tax but this is not the case in Old Tax Regime. Actually, there is no provision of 10% tax in the old tax regime.

If a person files tax according to Old Tax Regime, then there is no 10 percent tax slab in it. In the financial year 2022-23, if an individual whose age is less than 60 years files tax, then he will have to pay 5% tax on annual income between Rs 2.5 lakh to Rs 5 lakh. At the same time, he will have to pay 20% tax on income between Rs 5 lakh and Rs 10 lakh annually.

The post Income Tax: Big information! Only 10% tax will be applicable on this much income, know the update before the budget first appeared on Rightsofemployees.com.

This will be the last full budget of the government before the 2024 Lok Sabha elections. That’s why the government’s effort is also to please everyone from the salaried class to the farmers. On the other hand, every section is pinning a lot of hopes on the Modi government. In the last few years, the Modi government has made many changes regarding the budget. A change in that was made by the government keeping in mind the tax payers. But even today the situation regarding it is not clear among many people.

The claim of tax exemption in 7-10 ways in the old tax regime

was a change in the alternative income tax system introduced by the government in the General Budget 2020-21. The system of new tax regime and old tax regime was started in 2020-21 by Finance Minister Nirmala Sitharaman. Tax pair has to select any one of these two. Meanwhile, Finance Minister Nirmala Sitharaman said on Friday that people of low income group can claim tax exemption in 7-10 ways in the old tax regime.

Government brought another tax system

in 2020 Actually, the ‘New Tax Regime’ introduced in 2020 is different from the traditional tax system (Old Tax regime) that has been running since independence. In the old tax regime, you can claim various types of deductions including 80C, 80D, HRA. But you cannot claim any kind of deduction in the new tax slab. Finance Minister Nirmala Sitharaman also said that in 2020, the government brought another system with the old tax regime. There is no exemption in this, but it is simple and the tax is less. The Finance Minister said that I had to make seven slabs so that there are low rates for the people of low income group.

Income up to Rs 2.5 lakh tax free

In the new tax regime, income up to Rs 2.5 lakh is tax free. After this, 5 percent on income from 2.5 lakh to 5 lakh rupees, 10 percent on income from 5 lakh to 7.5 lakh rupees, 15 percent on income from 7.5 lakh to 10 lakh rupees, on income from 10 lakh to 12.5 lakh rupees. 20 per cent, 25 per cent on income between Rs 12.5 lakh to Rs 15 lakh and 30 per cent on income above Rs 15 lakh.

It is also important to understand this tax system.

Similarly, under the old tax system, income up to Rs 2.5 lakh is tax free. After this, 5 percent tax is levied on income between Rs 2.5 lakh and Rs 5 lakh. Income between Rs 5 lakh and Rs 10 lakh is taxed at 20 per cent and income above Rs 10 lakh and above is taxed at 30 per cent. Sitharaman said that the benefits of the old tax regime have not been removed, rather the new exemption-free tax regime is an alternative form of the income tax return system.

Old Tax Regime

Income up to 2.5 Lakh—-0% Tax
Income up to Rs 2,50,001 to 5 Lakh—-5% Tax Income
up to Rs 5,00,001 to 7.5 Lakh—-20% Tax
7 Income
from Rs.10,00,001 to Rs.10 lakhs —-20%
tax
30% tax on income above Rs.

New Tax Regime

Income up to 2.5 lakhs—-0% tax
Income from 2,50,001 to 5 lakhs—-5% tax
Income from 5,00,001 to 7.5 lakhs—-10% tax
7 Income
from Rs.10,00,001 to Rs.10
lakh—–15%
tax 30% tax on income above Rs.

The post Income tax system Rules Change: 73 years old rule changed for the benefit of tax payers, check details immediately first appeared on Rightsofemployees.com.

According to these tax slabs, people have to pay tax on their income. On the other hand, after a few weeks, the budget is also going to be presented by the central government. Every year taxpayers expect that the government should give concession regarding income tax in the budget. However, now before the budget, it is very important for the tax payers to know one important thing. The Union Budget is presented through the Finance Minister.

Tax Actually, for the financial year 2021-22, tax is being collected by the government according to two slabs. There is a New Tax Regime and the other is the Old Tax Regime. The rate of tax charged on income in both the slabs is different. In such a situation, 20 percent income tax is also collected by the government on different incomes. Here we are going to tell you that on how much income 20% tax is charged in New Tax Regime and on how much tax is charged in Old Tax Regime.

20 percent tax 

Tell that if income tax is to be filed according to the New Tax Regime, then if there is an income of Rs 10 lakh to Rs 12.5 lakh annually, then 20 percent tax has to be paid on it. However, if income tax is to be filed according to the Old Tax Regime, then 20% tax will have to be paid on income from Rs 5 lakh per annum to Rs 10 lakh per annum.

The post Income Tax Slab: Big News! Heavy tax of 20% will have to be paid on this much income first appeared on Rightsofemployees.com.

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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Whose income is taxable, he has to pay tax on his income. At present, tax is collected from taxpayers according to Old Tax Regime and New Tax Regime. However, before the budget, people should keep one thing in mind.

Budget 2023

Before the budget, it should be known that people may have to pay up to 30 percent tax on income. As the income increases, the tax rate also increases. Different tax slabs are prescribed for different incomes in India, according to which tax is paid. The tax rate has also been fixed for the financial year 2020-21.

30 percent tax

Although 30 percent tax rate in India is paid on different income according to Old Tax Regime and New Tax Regime. If a person uses Old Tax Regime while paying income tax, then he will have to pay 30 percent tax on separate income and if he chooses New Tax Regime, then he will have to pay 30 percent tax according to different slabs.

Old Tax Regime

If someone chooses Old Tax Regime while paying income tax and his age is less than 60 years, then that taxpayer will have to pay 30% tax on income above Rs 10 lakh annually for FY 2020-21. In this slab, according to the age, senior citizens also get relaxation.

New Tax Regime

On the other hand, if a person is paying tax according to the New Tax Regime, then for FY 2020-21, those taxpayers will have to pay 30 percent tax on earning more than Rs 15 lakh. In this slab, the tax slab is the same for all age groups.

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In the case of individuals, if someone’s income exceeds the minimum limit, then tax is levied according to the slab system. Indian Income Tax taxes individual taxpayers on the basis of a slab system. The slab system means that different tax rates are prescribed for different categories of income. This means that with the increase in the income of the taxpayer, the tax rates of the tax go on increasing.

Tax Regime

This type of taxation enables a progressive and fair tax system in the country. Such income tax slabs undergo changes during every budget. These slab rates are different for different categories of taxpayers. At the same time, there are currently two tax regimes in the country, according to which tax is collected. These are known as New Tax Regime and Old Tax Regime.

The Union Budget is going to be presented by the Finance Minister in a few days. On the other hand, if we look at the New Tax Regime and the Old Tax Regime for FY 2021-22, then a lot of difference will be seen. In these tax slabs, tax is charged at different rates for income up to Rs 10 lakh.

5 percent difference

In the New Tax Regime for FY 2021-22, tax has to be paid at the rate of 15 percent on annual income of Rs. 7.5 lakh to Rs. 10 lakh. Whereas it is not so in Old Tax Regime. In the Old Tax Regime, individual taxpayers below 60 years of age will have to pay 20 per cent tax on annual income between Rs 5 lakh and Rs 10 lakh. In such a situation, there is a difference of 5% in both the tax regimes for FY 2021-22 on an annual income of up to Rs 10 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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The deadline for filing income tax returns for the financial year 2021-22 and assessment year 2022-23 is over on July 31, 2022. After the deadline is over, whoever files the income tax return will have to pay a penalty. Although there are many categories of people who have not filed their returns yet, they need not panic as they will not have to pay any penalty even after the deadline for filing income tax returns is over.

Who will not have to pay penalty

According to the Income Tax Act, every person filing income tax return is not required to pay penalty even after the deadline is over. If a person’s annual income is less than the basic tax exemption limit, then they will not have to pay any penalty. According to the new tax regime, the basic tax exemption limit is Rs 2.50 lakh per annum. That is, under the new system of tax, those who are filing income tax returns after the deadline is over, they will not have to pay any penalty.

If someone is filing returns under the old tax regime, then the basic income tax exemption limit is determined on the basis of age. If the person is less than 60 years of age and has an annual income of less than Rs 2.50 lakh, then penalty will not have to be paid. Senior citizens in the age group of 60 to 80 years have an annual income of up to Rs 3 lakh, then they will not have to pay any penalty. And super senior citizens above 80 years whose income is less than Rs 5 lakh per annum will not have to pay penalty.

However, even if less than the limit of annual tax exemption but fulfill these conditions, then there will be penalty for filing income tax return after the deadline for assessment year 2022-23.

First – Those who have deposited more than Rs 1 crore in more than one current account in a bank or cooperative bank.

Second – 2 lakh rupees have been spent on foreign travel of himself or someone else.

Third – Those who have paid a bill of more than one lakh rupees in the head of electricity bill in a year.

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