It is generally believed that to claim tax exemption on HRA, you have to pay rent to a landlord and show the rent receipt.

But did you know that there is a way you can claim tax exemption on HRA without paying rent in the ‘traditional’ way? Yes, this is absolutely possible and is also valid under the Income Tax rules, provided you fulfill certain conditions. Let’s understand the whole math.

What is the rule of HRA and tax exemption?

Under Section 10(13A) of the Income Tax Act, HRA paid to salaried employees is tax exempt. This exemption reduces your total taxable income. The rule is simple – you should be receiving HRA and you should actually be living in a rented house and paying rent. If you live in your own house, you cannot claim tax exemption on HRA. Self-employed people also do not get this benefit of HRA exemption (though they can avail exemption under section 80GG with certain conditions).

How to claim HRA without paying ‘outside’ rent?

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The department also said that investments made in such companies will also get these benefits and are not subject to investigation. However, investments made in startups that do not meet the necessary conditions can be investigated based on the department’s risk management strategy. The Income Tax Department gave this information on the social media platform ‘X’ while responding to a tweet.

The Income Tax Department posted, “Recognised startups that fulfil the conditions prescribed in the notification of DPIIT (Department for Promotion of Industry and Internal Trade) dated February 19, 2019 and file a declaration in Form-2 are eligible for various tax exemptions and deductions under the Income Tax Act, 1961.”

It said that benefits will also be available on investments made in companies that are not under investigation. On February 19, 2019, the government relaxed the definition of startups and allowed them to avail full ‘angel’ tax exemption on investments up to Rs 25 crore.

what are startups

The post Tax Exemptions: Young entrepreneurs get the benefit of both tax exemption and deduction, know who will be eligible first appeared on Rightsofemployees.com.

These concessions have been given for scrapping transport vehicles that are more than eight years old. Under this, the pending tax, penalty, interest and challan will be waived through the ‘Registration and Works of Vehicle Scrapping Facility’ (RVSF). The purpose of giving these concessions is to encourage vehicle owners to scrap polluting vehicles.

Circular issued

According to a report in Times of India, the Transport Department has issued four circulars related to this scheme. According to one of them, if a vehicle older than eight years is scrapped in RVSF, then any offence committed under the Motor Vehicles Act, 1988 will be adjusted. Apart from this, challans related to traffic rule violations like over speeding, red light jumping will be waived on submission of challan deposit certificate.

The tax exemption will be valid for one year.

The penalty, interest and tax exemption have been explained in detail in another circular. This tax exemption will be applicable for one year from May 1, 2025. The age of the vehicle will be determined from its first registration date and it will be applicable to all vehicles.

Who will benefit?

A senior official said that this scheme will mainly benefit transport vehicles. There is a lump sum tax for 15 years for private vehicles, while transport vehicles have to pay tax every year. If the vehicles on which this tax is due are scrapped, then the motor vehicle tax and the interest on it will also be waived.

Up to 15% and up to 25% discount

On providing ‘Certificate of Deposit’ of scrap vehicle, the person gets discount in registration fee while purchasing a new vehicle. This discount is up to 25% for private vehicles and 15% for commercial vehicles.

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New Delhi. The central government has given a big relief to the employed citizens in this year’s budget. Income up to Rs 12 lakh has been made tax free. Not only this, if you are employed, then with standard deduction you will not have to pay any tax on income up to Rs 12.75 thousand. But income above that will start getting taxed. The tax calculation will be done from the initial slab.

Now a question arises that if there will be no tax on income up to Rs 12 lakh, then the calculation of tax should start after Rs 12 lakh. For example, if someone’s salary is Rs 13 lakh, then he should pay tax on Rs 1 lakh. As is the case with the initial income of Rs 4 lakh. Income up to Rs 4 lakh is also tax free and is not counted at the time of tax calculation.

What is the difference between 4 lakh and 12 lakh

There is a big difference between the tax exemption of 4 lakh and the tax exemption of 12 lakh. Here you have to understand 3 words related to tax. These words are – exemption, rebate and deduction. Let’s talk about them one by one and you will understand yourself how the exemption of 12 lakh is different from the exemption of 4 lakh.

Exemption- Tax on this amount is zero. It is kept in the tax slab just for name sake but its absence will not make any difference because the tax liability in this slab remains 0. Therefore, the exempted slab is never brought into consideration while calculating tax. Exemption is removed before tax calculation.

Deduction- After this comes deduction. Deduction is used before the calculation of tax. With the help of tax deduction, you try to reduce your taxable income in different ways. For example, the facility of tax deduction is available under section 87A of the Income Tax Act.

Rebate- Now let’s talk about rebate. Tax rebate is given on income up to Rs 12 lakh. In rebate, tax is calculated first. After this, you are given a discount like exemption. This means that your income is still taxable but because it is within a certain limit, the government has given you a discount. But if you cross that limit, then your tax calculation will start from the very first slab. The provision of rebate is under section 87A of the Income Tax Act.

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The post Tax exemption on income of ₹ 12 lakh is a rebate and not an exemption, what is the difference between the two first appeared on Rightsofemployees.com.

How will income of Rs 14.65 lakh be tax free

Now suppose your annual salary is Rs 14.65 lakh. Out of this, half the money i.e. 50 percent goes in the basic salary. Whereas, the remaining 50 percent comes in the form of other items and allowances. We will further calculate the tax deduction according to the amount of basic salary.

Complete calculation of tax exemption

If the company contributes 12% of the basic salary to the Employees Provident Fund, then tax deduction can be claimed on it. This will be Rs 87,900. At the same time, tax exemption is also available on the company’s contribution to the National Pension System (NPS). This contribution will be 14% of the basic salary i.e. Rs 1,02,550. Also, you get a standard deduction of Rs 75,000 in the new tax regime. That is, this amount will be directly reduced from your taxable income.

After taking advantage of all these exemptions, your net taxable income will be Rs 11,99,550 lakh. The government has made income up to Rs 12 lakh tax free, so this means that you will not have to pay a single rupee tax. But, you have to keep in mind that this system will come into effect from the next financial year i.e. 2025-26.

How much tax will be saved in total

If the government did not make income up to Rs 12 lakh tax free and did not give the benefit of tax deduction on EPS and NPS, then an annual income of Rs 14.65 lakh would have to pay heavy tax. According to the new tax regime, 5 percent tax (Rs 20 thousand) will be levied on income of Rs 4 to 8 lakh.

While 10% tax (Rs 40,000) will be levied on income between Rs 8 lakh and Rs 12 lakh, 15% tax will be levied on income between Rs 12 lakh and Rs 14.65 lakh. If the standard deduction of Rs 75,000 is removed, then 15% tax i.e. Rs 28,500 will be levied on Rs 1.90 lakh. In this way, the total tax liability will be Rs 88,500, which you can easily save.

The role of EPS and NPS is important

Tax exemption is available on Employee Pension Scheme (EPS) under section 80CCD(1) of Income Tax and on contribution to NPS under section 80CCD(2). However, in the new tax regime, this exemption is available only on the company’s contribution, as it is considered as your direct income. Therefore, you are allowed to claim tax exemption on it.

NPS i.e. National Payment System is a retirement plan. Those who join this government scheme get pension after retirement. In this, the contribution is invested in the market and the return received from it is given as pension. NPS was started in 2004. It was opened for the general public in 2009.

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The government runs a savings scheme called Sukanya Samriddhi to secure the future of girls in the country. In this, the government offers good interest, which it announces every three months. Now the government has announced the interest for the January-March quarter for this scheme. The government started it in the year 2015 under the ‘Beti Bachao, Beti Padhao’ campaign.

The purpose of Sukanya Samriddhi Yojana is to encourage parents to save money for their daughters. This ensures financial security of daughters. The government has kept the interest rate of this scheme at 8.2% for January 2025 to March 2025. This rate is the same as the previous quarter (October-December 2024). No change has been made in this.

Highlights of the scheme

It is necessary to deposit at least Rs 250 every year in Sukanya Samriddhi Yojana. If this amount is not deposited, the account is closed. To restart it, one has to pay Rs 250 as installment and Rs 50 as penalty.

You can deposit a maximum of Rs 1,50,000 in this scheme in a year. This account lasts for 21 years or is closed at the time of the daughter’s marriage. If the daughter turns 18, up to 50% of the money can be withdrawn from the account for her education.

Tax and interest benefits

This scheme offers an interest rate of 8.2%, which is the highest among all small savings schemes. It offers huge tax benefits. The money deposited, the interest received on it and the amount received on maturity of the account are all tax-free.

Documents required for opening an account

To open a Sukanya Samriddhi account, you have to submit the girl’s birth certificate, parents’ photo and identity proof. This account remains active for 14 years and money can be deposited in it. Even if money is not deposited in any year, the account can be reopened within 15 years.

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As per the rules, there is some tax exemption on submitting rent receipts. Some people misuse this rule and submit fake rent receipts to avoid or reduce income tax. But they do not know that the Income Tax Department also keeps an eye on such people and can take action against them.

Help of AI tools

Now the Income Tax Department is using AI, i.e. Artificial Intelligence tool, to deal with those who take tax exemption by submitting fake receipts, through which the details given in the form are matched with the transactions related to the PAN card.

Let us tell you that if you submit a rent receipt of more than one lakh rupees, the Income Tax Department will also ask for the landlord’s PAN card number. After this, with the help of artificial intelligence, it will be matched whether the claim amount made by the tenant by submitting the receipt is also showing on the owner’s PAN card or not.

This will be the punishment

Those who are found guilty in the eyes of the Income Tax Department, that is, when it becomes clear from the documents of both the landlord and the tenant that the tenant has not paid the rent as claimed or has not paid the rent at all, then the Income Tax Department can take action. Under which, notice will be given to those who have submitted fake rent receipts. Form 26AS and AIS will play the most important role in this entire process.

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That is, if you deposit Rs 12,500 every month in Sukanya Samriddhi Yojana in the name of your daughter, then you will get a mega return of more than Rs 80 lakh by the time your daughter turns 21 years old. Apart from this, there will be tax savings on this investment, that is separate. Let us know how your daughter will get a mega return of Rs 80 lakh by investing in Sukanya Samriddhi Yojana.

What is Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana is a savings scheme. It was launched in 2015 as part of the government’s initiative Beti Bachao, Beti Padhao campaign. The scheme enables parents to open a savings account for their girl child in any authorized bank or post office branch. The government pays 8.2% interest on deposits in Sukanya Samriddhi Yojana accounts.

Whose account will be opened in Sukanya Samriddhi Yojana

To open an account in Sukanya Samriddhi Yojana, the girl child must be a resident of India. The age of the girl child should not be more than 10 years. A maximum of two accounts can be opened in a family with two daughters. Apart from this, legal guardians can also open an account in the name of the girl child in this government scheme and deposit money.

Tax exemption in Sukanya Samriddhi Yojana

Investing in Sukanya Samriddhi Yojana provides tax exemption under Section 80C of the Income Tax Act. Under this scheme, you can contribute a maximum of Rs 1.5 lakh annually. The interest received on the deposit amount under the scheme is also tax free. The interest rate is fixed by the government every quarter.

How much tax exemption is available in Sukanya Samriddhi Yojana

• If you deposit Rs 1.5 lakh annually and your annual salary is between Rs 3 to 6 lakh, you will save tax of Rs 7,500 annually. Those whose salary is between Rs 3 to 6 lakh annually get the benefit of up to 5% tax exemption on deposits of Rs 1.5 lakh.
• At the same time, if your salary is between Rs 6 to 9 lakh, then on depositing in Sukanya Samriddhi Yojana, you will get the benefit of tax exemption of up to Rs 15,000 at the rate of 10% on 1.5 annual deposits.
• Those whose annual salary is between Rs 9 to 12 lakh will get tax exemption of up to Rs 22,500 at the rate of 15% on annual deposit of Rs 1.5 lakh under Sukanya Samriddhi Yojana.
• Those whose annual salary is between Rs 12 to 15 lakh will get the benefit of tax exemption of up to Rs 30,000 at the rate of 20% on annual deposit of Rs 1.5 lakh under Sukanya Samriddhi Yojana.
• Apart from this, those whose salary is more than Rs 15 lakh will get the benefit of tax exemption up to Rs 45,000 at the rate of 30% on annual deposit of Rs 1.5 lakh under Sukanya Samriddhi Yojana.

This is how you can get a mega return of Rs 70 lakh from Sukanya Samriddhi Yojana

If your daughter is 10 years old and you deposit Rs 12,500 every month in her account under Sukanya Samriddhi Yojana, then Rs 1.5 lakh will be deposited in a year. When your daughter turns 21, about Rs 22.50 lakh will be deposited in her account. You will get 8.2% annual interest on this deposit. On this interest, you will get about Rs 46,77,578 as return till the maturity date.

Now if we add the principal and interest amount, the total amount will be Rs 69,27,578. Now if your annual salary is more than Rs 15 lakh, then you will save Rs 45,000 annually as tax exemption. When your daughter turns 21, you will save Rs 9.45 lakh from tax. Now if you add the tax saving amount of Rs 9.45 lakh to the Rs 69,27,578 deposited in the Sukanya Samriddhi Yojana account, then this amount will become Rs 7,872,578. That means when your daughter turns 21, she will have an amount of around Rs 80 lakh.

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This scheme has been brought especially for women. You can invest in this scheme till March 2025. Investment is made in it for two years and you can deposit a maximum amount of up to Rs 2 lakh.

This scheme has been introduced with the aim of encouraging women to save and invest. Any woman can invest in the Mahila Samman Savings Certificate Scheme.

Fully secured scheme

Under this scheme, the minor account is opened by the guardians. MSSC is a government-backed scheme and it is 100 percent safe. At present, interest is given at the rate of 7.5 percent on this scheme of the Government of India.

Interest will be available up to Rs 32,044

Under the scheme, compound interest on the deposited amount is added on a quarterly basis. If a woman invests a maximum of Rs 2 lakh in MSSC, she will get a total interest of Rs 32,044 during the invested period. The maturity amount after 2 years will be Rs 2,32,044. The deposited amount in the scheme can also be withdrawn before time. Only 40 percent of the amount can be withdrawn within one year of investing.

How much can you invest

More than one account can be opened under this scheme, but the second account can be opened only after three months of opening the first account. The total deposit in all accounts under MSSC cannot exceed Rs 2 lakh. A minimum of Rs 1,000 can be deposited in one account. Apart from this, the amount can be deposited in multiples of 100.

You also get tax saving

In this scheme of the Government of India, the investor also gets the benefit of tax exemption under Section 80C of Income Tax. If the account holder dies before maturity after the scheme is started, the nominee can claim the deposited capital. If the account is closed prematurely for any reason, interest will be given on the basis of 5.5 percent. Tax has to be paid on the interest earned in this scheme. TDS is deducted on interest.

How can you open an account

To avail the benefits of Mahila Samman Savings Certificate Scheme, you can go to the nearest post office or bank. You can start your investment by filling the form of this scheme. After the scheme starts, you will be given a certificate, which will have to be kept for 2 years.

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The post Great Post Office Scheme for Women, not only will you get tax exemption, you will also get interest up to ₹ 32 thousand first appeared on Rightsofemployees.com.

In the meeting with Finance Minister Nirmala Sitharaman, labor organizations have demanded the formation of Old Pension Scheme (OPS), 8th Pay Commission and increase in tax exemption in the full budget. Apart from this, labor organizations have also demanded to stop the privatization of government companies and stop the New Pension Scheme (NPS).

In the memorandum given by the labour organisations in the meeting held with Finance Minister Nirmala Sitharaman on Monday, it has been said that a social security fund should be set up by the government for the workers of the unorganised and agricultural sector, so that they can get a minimum pension of Rs 9,000 per month and other medical, educational benefits etc.

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They have demanded that all the existing vacancies in the central government departments and government companies should be filled. Apart from this, the practice of contract and outsourcing should be stopped.

Budget: GST should be removed from food items and medicines

The workers’ organizations further said that instead of burdening the general public through GST on essential food items and medicines, corporate tax, increase in property tax and inheritance tax should be implemented. Representatives of 12 workers’ organizations including INTUC, AITUC, CITU, AIUTUC, TUCC and UTUC participated in the meeting. The Bharatiya Mazdoor Sangh (BMS) separately submitted a memorandum with its demand.

They demanded to increase the scope of MNREGA and guarantee 200 days of work to every family. It has also been said to link the work of agriculture and allied sectors with MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act). The workers’ organization has also demanded to increase the criteria of Ayushman Bharat Yojana from Rs 1.20 lakh to Rs three lakh.

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Post Office Yojna : Do you also want that your savings keep giving you money like your salary every month? Here we are telling you about a scheme of Post Office in which you will get Rs 20,500 every month. You will get monthly income of Rs 20,500 for the entire 5 years. With monthly savings, there will be no tension of expenses. The name of this scheme of Post Office is Senior Citizen Saving Scheme. This scheme of Post Office gives a fixed income to senior citizens every month. Here we are telling the complete calculation of the monthly scheme of Post Office.

Post Office Senior Citizen Savings Scheme

This scheme of the post office has been made keeping in mind the people of 60 years of age so that senior citizens can get regular income after retirement. This scheme is also for those who have taken VRS. The government is currently giving interest at the rate of 8.2 percent on this scheme. If senior citizens deposit Rs 15 lakh at once in this scheme, then they can earn Rs 10,250 every quarter. In 5 years, you will earn up to Rs 2 lakh from interest only. If you invest your retirement money in this, that is, maximum Rs 30 lakh, then you will get an interest of Rs 2,46,000 every year. That is, you will get Rs 20,500 on a monthly basis and Rs 61,500 on a quarterly basis.

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Tax exemption is available on post office scheme

You can start investing in Post Office Senior Citizen Savings Scheme with a minimum of Rs 1000. Investors can invest a maximum of Rs 30 lakh in it. The money or interest you get every month in this scheme depends on your investment. By investing in this scheme, you will get exemption under 80C.

Calculation of Senior Citizen Savings Scheme

• Lump deposit amount: Rs 30 lakh
• Period: 5 years
• Interest Rate: 8.2%
• Amount on maturity: Rs 42,30,000
• Interest income: Rs 12,30,000
• Quarterly income: Rs 61,500
• Monthly income: Rs 20,500
• Annual Interest – Rs 2,46,000

Benefits of Senior Citizen Savings Scheme

This savings scheme is being run by the Government of India. That is, your money will be safe and there will be guaranteed income. In this, investors get tax exemption up to Rs 1.5 lakh every year under Income Tax Act Section 80C. Interest is received at the rate of 8.2% every year. In this, interest money is received every 3 months. Interest is deposited in the account on the first day of April, July, October and January every year.

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This will tell how much benefit the taxpayers will get from tax exemption by filing IT Return under the new tax system and how much benefit will be there under the old system. After getting this information, it will be easy to choose the new and old tax system. Let us know what the experts say about the exemptions available under the new tax system and the old tax system.

Exemptions under the new tax regime

Tax manager Surendra Pandit said that under the new tax system, if a salaried person is going to file IT return, then he will get exemption under standard deduction in the new tax system on salary up to Rs 50,000. Apart from this, there is a provision of exemption on family pension up to Rs 15,000 under the same standard deduction. He said that in the new tax system, there is a provision of exemption under normal depreciation (Income Tax Section 32) for businessmen, Income Tax Section 80CCD (2) for NPS employers, Income Tax Section 80CCH for Agniveers and Income Tax Section 80JJAA for new employees.

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Who will not get exemption under the new tax system

Surendra Pandit further said that in the new tax system, there is no provision for exemption of entertainment tax under section 16 (ii) of Income Tax and professional tax under section 16 (iii) for salaried people. Apart from this, there will be no exemption on House Rent Allowance (HRA), Leave Travel Allowance (LTA) and other types of allowances in the new tax system. Along with this, there will be no exemption under section 80C, 80D and 80G of Income Tax in the new tax system.

What is the provision of exemption in the old tax system

He said that while filing IT returns in the old tax system, there is a provision for exemption under standard deduction in the new tax system for salaried and businessmen on salary up to Rs 50,000, exemption on family pension up to Rs 15,000, normal depreciation ( Section 32 of Income Tax ), Income Tax Section 80CCD (2) for NPS employers, Income Tax Section 80CCH for Agniveers and Income Tax Section 80JJAA for new employees. Apart from this, salaried people will also be given exemption in entertainment tax under Section 16 (ii) of Income Tax and professional tax under Section 16 (iii), exemption on House Rent Allowance (HRA), Leave Travel Allowance (LTA) and other types of allowances and exemption under Section 80C, 80D and 80G.

What a taxpayer should do and what he should not do

Surendra Pandit advises taxpayers that the tax slab rate has been reduced in the new tax system. The advantage of coming to the new system is that if you claim a total exemption of Rs 4 lakh or Rs 4.5 lakh, then you have an advantage in staying in the old tax system. Now what is in this 4.5 lakh? So, if you have to claim a deduction of Rs 4.5 lakh by combining Rs 1.5 lakh in 80C, Rs 50,000 in 80D, Rs 50,000 in NPS and Rs 2 lakh interest on housing rent, then there is an advantage in choosing the old tax system, otherwise the new tax system is beneficial for common people.

File ITR on time to remain in the old system

Chartered Accountant Vinod Banka says that the point to note is that the Income Tax Department has made the new tax system by default. If a person does not opt ​​for the old tax system, he will automatically go to the new tax system. In such a situation, those who take big exemptions in income tax will not get it. They will have to opt before the option. Therefore, you will have to opt for the old tax system before filing IT returns . Not only this, it is necessary to file IT returns on time to remain in the old tax system.

The post Income Tax Slab: Which is the most beneficial in the old and new tax system, know what the experts say? first appeared on Rightsofemployees.com.

They want to invest this savings in a place where they get high returns and their invested amount is completely safe. This is the reason why most senior citizens invest money in FDs in banks. Many banks also give 50 percent more interest to senior citizens to encourage their FD investment.

If you are also thinking of investing your retirement capital in a safe place, then this time invest in a post office scheme instead of a bank FD. A special scheme is run in the post office for senior citizens, called Senior Citizen Savings Scheme. In this scheme, they are given a good interest, with the help of which senior citizens can increase their savings rapidly.

The amount is deposited for 5 years

Senior Citizen Savings Scheme is a deposit scheme. In this, money is deposited for 5 years. Any person whose age is 60 years or more can invest. On the other hand, civil sector government employees taking VRS and people retiring from defense are given relaxation in age limit with some conditions.

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8.2% interest and tax exemption too

SCSS is currently giving an interest rate of 8.2 percent. Senior citizens can invest up to Rs 30,00,000 in this scheme, while the minimum investment limit is Rs 1000. In this scheme, interest is paid on the deposit amount on a quarterly basis. The scheme matures after 5 years. If you want to continue the benefits of this scheme even after 5 years, then after the deposit amount matures, you can extend the account period for three years. It can be extended within 1 year of maturity. The extended account gets interest at the rate applicable on the date of maturity. SCSS offers the benefit of tax exemption under section 80C.

This is how 15 lakhs will become ₹21,15,000

If you want to increase your savings rapidly, then this scheme can prove to be a better option. In this scheme, if you deposit Rs 15 lakh from your savings for 5 years, then according to the current interest rate of 8.2 percent, you will get Rs 6,15,000 in 5 years as interest only. If you calculate the interest on quarterly basis, it will be Rs 30,750. In this way, by adding Rs 5,00,000 and the interest amount of Rs 6,15,000, you will get a total of Rs 21,15,000 as maturity amount.

The post Post Office Scheme: Deposit 15 lakhs from retirement savings, you will get guaranteed ₹21,15,000 after 5 years first appeared on Rightsofemployees.com.

If you are planning to invest in a scheme in which your money will be safe and you will also get strong returns, then this news is special for you. Although many saving schemes are being run by the government, but the government scheme included in it is PPF, in which there is no fear of losing money at all and the interest is also tremendous. By depositing just Rs 405 daily in this scheme, you can become the owner of Rs 1 crore. Let us know about it in detail…

Strong interest of 7.1% in this government scheme:

PPF Scheme remains the first choice for investment due to its many features. Public Provident Fund i.e. PPF investments get more interest than fixed deposits (FD) in banks and post offices. At present, the government is giving interest on PPF at the rate of 7.1 percent per annum. Apart from this, compound interest is given on investment in this scheme and it is calculated on an annual basis. Interest is paid to the accounts of PPF account holders in March every year.

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You can start investing from Rs 500.

In this government saving scheme, you can invest at least Rs 500 annually and the maximum investment limit is Rs 1.5 lakh. If an investor deposits more than Rs 1.5 lakh in a financial year, then no interest is paid on the amount over and above the limit. You can invest in this scheme in lump sum or in installments. The most important thing is that the investment in PPF, the interest received and the amount received on maturity are completely tax free. In this, the investor has to invest for 15 years.

These amazing benefits along with tax exemption

Investment in PPF is also a great option for getting tax exemption. Under Section 80C of Income Tax, up to Rs 1.5 lakh tax exemption is available on deposits in it. Apart from this, talking about other benefits, you can continue investing even after the maturity of this scheme and can extend your account for 5-5 years. However, for account extension, you have to apply one year before the maturity ends.

The next benefit is that you can withdraw money from the PPF scheme before its maturity. According to the rules set for this, 50 percent of the deposit amount can be withdrawn in an emergency. But, for this it is necessary that your PPF account should be 6 years old. Apart from this, a loan can also be taken on it after running the PPF account for three years. Only 25 percent of the deposit amount can be taken as a loan on the PF account. 2 percent more interest has to be paid than the interest rate being received on this and a maximum of 36 months is given to repay the loan.

Always remember the 5th

. One of the special rules regarding investment in PPF is that if you are depositing money in PPF and do it on the 5th of the month, then you get an extra benefit. Actually, by doing this you will get interest for the whole month. But if you deposit in the PPF account by the 6th or the last date of that month, then the interest on it will be added from the next month. Interest is calculated on the minimum balance between the end of the 5th day and the last day of every month. Therefore, always remember the 5th during PPF investment.

How can one become a millionaire through PPF?

Now let us talk about how this government scheme proves to be a Crorepati Scheme for the investors, its calculation is very easy. Actually, you can become a millionaire by depositing little by little money in this government secured scheme. For this, you will have to save Rs 405 every day and if you calculate accordingly, you will add Rs 1,47,850 annually. Now if you deposit this amount continuously in the PPF account for 25 years, then based on the current interest rate of 7.1, the total fund becomes more than Rs 1 crore.

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If you want to save tax for this financial year, there is still time. If you want to save tax before the end of the financial year, then you have only two months and a few days left. In such a situation, the easiest way is section 80C. But, apart from this, if you want to get tax exemption then there can be other good options. Today we will tell you about such options, where tax saving of up to Rs 4 lakh can be done.

There is a tax exemption of Rs 7 lakh in the new tax regime. But, in the old tax regime, the easiest way to get tax exemption is available only in Section 80C (Tax Saving Section 80C). But, here the discount is available only up to Rs 1.5 lakh. However, there are some options other than Section 80C.

1. Rebate on interest on savings account

Under Section 80TTA of Income Tax, interest received on deposits in savings account comes under the ambit of tax exemption. Tax exemption can be claimed on annual interest up to Rs 10,000. At the same time, senior citizens get tax exemption on interest up to Rs 50,000 annually under Section 80TTB on various savings accounts.

2. National Pension Scheme (NPS)

Tax exemption of up to Rs 50 thousand is available on investing in NPS. This exemption is available in section 80CCD (1B). This means that if your annual income is taxable then you can get a rebate of up to Rs 50 thousand by investing here.

3. Health Insurance (80D)

There is tax exemption on health insurance premium in section 80D of Income Tax. Who is included in the policy, what is their age, you can claim tax exemption from ₹ 25,000 to ₹ 1 lakh. You can claim Rs 25000 each for yourself and your parents.

4. Home Loan (80EE)

There are two types of tax exemptions available on home loan repayment. There is tax exemption up to ₹ 1.5 lakh under 80C on the principal amount. At the same time, under Section 24, there is tax exemption on interest up to a maximum of ₹ 2 lakh. Apart from this, the government gives additional exemption on home loan interest under Income Tax Section 80EE to those buying their first house. There should not be any other house in your name. Under this section you can claim additional tax up to Rs 50,000. The condition is that the price of the property should be less than Rs 50 lakh and the loan should be Rs 35 lakh or less.

5. Exemption on donation to charitable institute

If you do charity, you can save tax on this also. Exemption on charitable amount can be claimed under Section 80CCC of Income Tax. Donation made to a recognized charitable institution comes under the ambit of tax exemption. However, exemption is not available on the entire donation. You can avail tax exemption on amounts more than Rs 200.

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Will the income tax slab change?

According to sources associated with the Finance Ministry, a change in the income tax slab may be seen in the budget to provide relief to the taxpayers. However, there will not be much change. But, some relaxation is possible for people of a particular salary group. Talking about the old tax regime, there are a total of 5 slabs of income tax in the current system. Among these, income up to Rs 2.5 lakh comes in tax free category. After this, there is 5 percent tax on income between Rs 2.5 lakh to Rs 5 lakh.

At the same time, 20 percent tax has to be paid directly on income of Rs 5 lakh to Rs 10 lakh. 30 percent tax is levied on income between Rs 10 lakh to Rs 20 lakh and those with income above Rs 20 lakh also have to pay 30 percent tax. At the same time, in the new tax regime, till now salary up to Rs 7 lakh comes under the tax free ambit. Bigger relaxation can be given in this. This can be increased to Rs 10 lakh. There will be no change in the old tax regime. This step can be taken to rationalize the new tax regime.

What will be in the new income tax slab?

If sources in the Finance Ministry are to be believed, the salary structure of up to Rs 10 lakh will be in focus in the budget. There is a possibility of change in this. Currently, salary up to Rs 10 lakh comes in two tax slabs. The first is Rs 6 to 9 lakh, on which there is 10 percent tax. Whereas, 9 lakh to 12 lakh on which there is 15 percent tax. In such a situation, an attempt may be made to convert the two tax slabs into one slab of Rs 10 lakh. There is a plan to impose 10 percent tax on this also. In this, the slab of Rs 6-9 lakh can be changed.

Will people with income of Rs 15 lakh also benefit?

In the current tax system, in the new regime, 20 percent tax is levied on those with income of Rs 15 lakh. Meaning, if we look at up to Rs 10 lakh, tax is levied at the rate of 10 and 15 percent. At the same time, there is 20 percent tax on Rs 15 lakh. There is a possibility that the 15 percent slab may be abolished. 10% tax should be levied directly on income up to Rs 10 lakh and 20% tax should be levied on income between Rs 10 to 15 lakh.

In such a situation, the tax burden on those falling in the 10 to 12 percent slab will increase, but there will be huge relief up to Rs 10 lakh. If sources are to be believed, the plan is to break the slab and make it more attractive than the old regime. However, other relaxations will not be available in this.

If salary is above Rs 15 lakh then there is no benefit

Be it new tax regime or old tax regime, in both the structures, people with salary above Rs 15 lakh have to pay 30 percent tax. The situation will remain similar in the coming days also. There is no intention to give any special exemption to this income group.

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A minimum of Rs 250 and a maximum of Rs 1.5 lakh can be deposited in this scheme. In Sukanya Samriddhi Yojana, you have to invest continuously for 15 years and the scheme matures at 21 years. If you invest even Rs 5000 every month in this scheme, you can collect a good amount for your daughter till maturity and can easily fulfill all the responsibilities related to it. At present, interest on Sukanya Samriddhi Yojana is 8 percent per annum.

What is the return on a monthly investment of Rs 5000?

If you invest Rs 5000 every month in Sukanya Samriddhi Yojana, then you will have to invest Rs 60,000 annually. In this way, you will invest a total of Rs 9,00,000 in 15 years. You will not make any investment between 15 to 21 years, but interest will continue to be added on your amount at the rate of 8 percent.

Now if you calculate it according to the SSY calculator, then you will get Rs 17,93,814 as interest on your total investment of Rs 9 lakh, which will be almost double your total investment. In such a situation, you will get a total of Rs 26,93,814 on maturity i.e. approximately Rs 27 lakh. If you start this investment in the year 2023, you will get the maturity amount in 2044. You can spend this amount as per your daughter’s needs in her studies or marriage etc.

Benefit of tax exemption

Interest in Sukanya Samriddhi Yojana is reviewed on quarterly basis. In this, tax exemption is also available under Section 80C of the Income Tax Act. You can claim tax exemption on maximum Rs 1.50 lakh. Under this scheme, you can open accounts only for two daughters. If you have more than two daughters, then you will not get the benefit of this scheme for the third or fourth daughter. However, if your second girl, twins or triplets are born, then Sukanya Samriddhi Account can be opened for her.

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Which form to fill

First of all, let us tell you that people below 60 years of age have to fill 15G form, which has a condition that no income tax should be made on you. Second, your total income should be less than 2.5 lakh.

How senior citizens can save tax

Above 60 years i.e. for senior citizens, 15H form will have to be filled. The condition of 15H is that no tax should be made on your income. There is no condition of basic exemption limit in this. If the interest is going above the basic exemption limit, but you will not be taxed if you do not have any other income. In this condition, you can go to the bank and fill 15H form, in which case the bank will not deduct your TDS and all your interest will come to your account.

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Let’s know and what are the specialties. Life Insurance Corporation has announced another policy plan. LIC has named this highly anticipating new product as LIC’s Dhan Vriddhi. This is a non linked, non participating individual savings plan. LIC hopes that this plan can bring a big change.

Life Insurance Corporation of India’s Dhan Vridhi plan aims to meet the insurance needs of the domestic market. Along with this, the insurance holder also has to provide financial security. Under this plan, people will get a comprehensive life insurance, which will have security, development and financial stability. This insurance scheme, launched under the Life Insurance Corporation of India, will take care of the needs of the insurance holder.

This scheme will fulfill all the needs

This insurance scheme was launched on 23 June 2023. It has been said on behalf of LIC that it strengthens the rules to meet the growing needs of its customers. This scheme will fulfill all the needs of the insurance holder and will also remove the problems of the customers.

Features of LIC Dhan Vridhi Plan

This policy is a life insurance single-premium policy, which offers a combination of savings and protection during the policy term. According to the website of Life Insurance of India, this policy gives an additional guarantee of up to Rs 75 per Rs 1,000 sum assured. The policyholder will be eligible for tax exemption under section 80-C. This means that the insurance holders who buy this policy can get a discount of up to Rs 1.5 lakh. The policyholder can surrender at any time during the policy term.

LIC introduces new policies from time to time

Significantly, Life Insurance Corporation of India is the leading insurance company of India, which has launched insurance policy for every category. It has insurance plans for children to elderly people. The company has also introduced plans for the marriage of girls. At the same time, based on the needs of the market and people, new policies are brought.

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But, to take advantage of this discount, you have to fulfill certain terms and conditions. People paying stamp duty and registration charges under section 80C can claim exemption while filing Income Tax Return (ITR) in the year in which they buy the house.

Tax exemption on stamp duty can be claimed by individual owners, co-owners or Hindu undivided families. In case of joint ownership, exemption is given to the co-owners according to their share. For this, it is mandatory for the property to be registered in the name of all the owners and stamp duty has to be paid by them. If someone other than the co-owners of the property pays the stamp duty, then the benefit of tax deduction will not be available to the co-owners of the property.

Exemption only on residential property

Section 80C (xviii) (d) of the Indian Income Tax Act, 1961 provides for tax exemption on expenses such as stamp duty and registration fees incurred on the purchase or transfer of property. Under this, a deduction of up to Rs 1.5 lakh can be claimed. It is to be noted here that this exemption can be availed only on residential property and not on commercial property.

Tax exemption on stamp duty paid in the same financial year

can be availed in the same financial year for which ITR is being filed. This means that while filing ITR for the financial year 2022-23, you can claim exemption only on the stop duty paid in this financial year and not for the house purchased in the previous financial year.

Occupancy required

You can claim exemption on stamp duty paid only for the residential property which is in your possession as the first owner. That is, you should have possession of the property. Under-construction properties are not eligible for stamp duty tax benefits.

Lock-in period of 5 years

The property for which Tax Benefits on Stamp Duty has been availed for the purchase cannot be sold for five years. If one sells the property before this period, then the ITR of the year in which the exemption is availed gets revised and the stamp duty deducted is taxed.

This is also a condition , for tax deduction on applicable stamp duty, it is also necessary that you have not crossed the maximum exemption limit of 1.5 lakhs under section 80C. This means that if you have already taken exemption up to 1.5 lakhs on investments in EPF, PPF, SCSS, life insurance policy, ELSS etc.,

then you cannot claim tax exemption on stamp duty. If you have availed less than 1.5 lakhs exemption after claiming the deduction on these investment options, then you are entitled to tax deduction on stamp duty also.

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Let us know about those great plans through which you can not only get good returns but also get tax exemption through these investments.

Senior Citizen Saving Scheme

This scheme has been specially designed by the government for people who are above 60 years of age. The main objective of starting this is to provide regular income to senior citizens even in old age. The good thing is that investment in this scheme can be started with only Rs 1000. Investors can invest up to a maximum of Rs 15 lakh if ​​they wish. The maturity period in this scheme is of 5 years. On which interest is given at an interest rate of 8 percent. Not only this, the investment made in Senior Citizen Saving Scheme can also provide tax benefit up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act.

Tax free bonds

Senior citizens can also earn good income by investing in tax free bonds. These bonds are issued by the subsidiaries of the government. In which investment is done without risk. After a certain time, you will get the return, which is completely tax free.

National Savings Certificate

Those who invest in this scheme get tremendous benefit of compounding interest. That means you will also get a good return on your investment and you can also save tax through this. In this, the interest rate has been increased to 7 percent. This can be a better investment option for senior citizens.

ELSS Scheme

ELSS, also known as Tax Saving Mutual Fund Scheme, is an equity based mutual fund. 20 percent of which is invested in the form of debt and the remaining 80 percent is invested in the stock market. Along with good returns, it can also prove to be a good option for tax saving. Under Section 80C of the Income Tax Department, tax saving of up to Rs 1.50 lakh can be done in this.

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Finance Minister Nirmala Sitharaman had made income up to Rs 7 lakh tax free while making changes in the new tax regime. While making changes in the new tax regime, the government has exempted income up to Rs 7 lakh from tax. Now the government has given another relief to the taxpayers. Under the Finance Bill 2023, tax exemption has also been given on income above Rs 7 lakh. You think that the government has changed the slab or changed the taxable income, let us tell you that nothing like this has happened. The government has given only marginal relief to those people whose income is a little over Rs 7 lakh.

Income above Rs 7 lakh also out of tax net

The Lok Sabha has approved the Finance Bill 2023. After this amendment, taxpayers have got some relief under the new tax regime. The new rule will come into force from 1 April 2023. Giving detailed information about the new relief, Finance Minister Nirla Sitharaman said that under the new tax regime, if a taxpayer’s annual income is Rs 7 lakh, then he does not have to pay any tax.

It is exempt from tax, but if someone’s income becomes Rs 7,00,100, then he will have to pay Rs 25,010 after calculating under the tax slab. That is, for an increase of only Rs 100 in income, taxpayers have to pay tax of Rs 25 thousand 1 hundred. The government has given minor relief to such taxpayers. So that those people can get relief, whose income is slightly more than the scope of tax free income.

It should be mentioned here that the information has not yet been received on how much this relief will be given. The government has proposed to give minor relief in the Finance Bill.

Minor relief to these people in income tax

To clear the picture of this relief, let us understand with an example. Suppose your income is Rs 7,00,100 means Rs 7 lakh 100. That is, his income is only Rs 100 more than the tax free income. That is, because of only Rs 100, he has to pay tax of Rs 25,010.

The government has given relief to such people by giving minor relief. Under the new proposal, if your income is Rs 7,00,100, then they will not have to pay tax of Rs 25,010, rather they will have to pay only Rs 100 tax.

This relief was found in the budget

In the announcement of Budget 2023, the government gave relief to the taxpayers who adopted the new tax regime. The government made income up to Rs 7 lakh tax free. The government’s intention behind this was that more and more people should adopt the new tax regime. It is also important to know here that no exemption is given on investment in the new tax regime.

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To make the new tax regime attractive, the government has increased the tax exemption limit up to Rs 7 lakh. It is a matter of great relief for the employed and middle class people. Those whose annual income is less than Rs 7 lakh can save tax on their entire income in this regime. But, if I tell you that this range is not 7, but 7.5 lakh rupees, then it will not be believed.

In the financial year 2023-24, the government has given direct exemption regarding income tax slab after many years. Although the new tax regime has been implemented two years ago, but in true sense its days are now over. In the budget, it has been announced to implement the new tax regime by default. Till now the old tax regime was implemented by default. This means that now you do not tell your HR which regime to choose, then by default your income tax calculation will start with the new regime. If you want to pay tax from the old regime, you must first inform your employer.

Who will get the benefit

When the Finance Minister gave information on personal tax during the budget speech, he made income tax-free up to Rs 7 lakh in the new tax regime. Earlier this limit was 5 lakh rupees. The confusion is that if the income of Rs 7 lakh is made tax free, then how much tax will have to be paid by those earning Rs 7.5 lakh. The government increased the tax rebate limit from Rs 5 lakh to Rs 7 lakh and also gave a standard deduction of Rs 50,000. In this way, the total income up to Rs 7.5 lakh became tax free.

If earning is more than 7.5 lakh

If someone’s annual income is more than Rs 7.5 lakh and is adopting the option of savings, then he should stay away from the new tax regime. Actually, in the old regime, tax exemption is given only up to 5 lakhs. Tax has to be saved in the form of investment on income more than this.

Those who are not able to invest in rising inflation, they should adopt the new regime. In this, even after taking tax exemption of 7.5 lakhs, if your income is more, then the tax rate will be less on it. Apart from this, tax up to 3 lakh has been kept nil in the new regime, due to which you will be able to save several thousand in the form of tax.

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Those whose annual income is less than Rs 7 lakh can save tax on their entire income in this regime. But, if I tell you that this range is not 7, but 7.5 lakh rupees, then it will not be believed.

Actually, in the financial year 2023-24, after many years, the government has given direct exemption regarding Income Tax Slab. Although the new tax regime has been implemented two years ago, but in true sense its days are now over. In the budget, it has been announced to implement the new tax regime by default.

Till now the old tax regime was implemented by default. This means that now you do not tell your HR which regime to choose, then by default your income tax calculation will start with the new regime. If you want to pay tax from the old regime, you must first inform your employer.

Who will get 7 lakh tax exemption

In the budget, the Finance Minister had told that in the new tax regime, the direct exemption of income tax will be 7 lakh rupees. However, tax exemption will not be available on any kind of investment in this regime. That is, such job professionals who are not able to make any investment, now they will not have to pay tax on income up to Rs 7 lakh. But, in the new regime also, the total rules of income tax exemption apply, which give you a chance to avail tax exemption even after the scope of 7 lakhs.

How to save 50 thousand more In order to increase the scope of tax exemption to more than 7 lakhs in the new regime, you will have to claim Standard Deduction. Under the Income Tax Act, every salaried person is given a rebate of Rs 50 thousand in the name of standard deduction. But, its benefit is available only to the working people. So, if you are opting for the new tax regime this year, do not forget to claim standard deduction while filing the next ITR.

Earning is more than this, so if someone’s annual income is more than Rs 7.5 lakh and is adopting the option of savings, then he should stay away from the new tax regime. Actually, in the old regime, tax exemption is given only up to 5 lakhs. Tax has to be saved in the form of investment on income more than this.

Those who are not able to invest in rising inflation, they should adopt the new regime. In this, even after taking tax exemption of 7.5 lakhs, if your income is more, then the tax rate will be less on it. Apart from this, tax up to 3 lakh has been kept nil in the new regime, due to which you will be able to save several thousand in the form of tax.

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The Finance Ministry has informed that the Central Board of Secondary Education (CBSE) has been exempted from income tax on income from examination fees, sale and publication of textbooks and other works. CBSE has got income tax exemption from the previous date. This exemption has been given for the financial year 2020-21 (June 1, 2020 to March 31, 2021) and for the financial years 2021-22 and 2022-23. The exemption will continue in the current financial year and the next financial year 2024-25 as well.

The Central Board of Direct Taxes (CBDT) said in a notification that the government has notified the Delhi-based Central Board of Secondary Education under section 10(46) of the Income Tax Act and exempted it from payment of income tax on its assessed income. CBSE has been formed by the central government.

There are many types of fees involved.

Let us tell you that such income includes examination fees, fees associated with CBSE, sale of text books and publications, registration fees, sports fees and training fees. In addition, the amount received from CBSE projects/programmes, interest on income tax refund and interest earned on such income will be exempt from income tax.

What is the condition for tax exemption

According to CBDT, tax exemption is subject to the condition that CBSE will not engage in any commercial activity and the nature of the prescribed income will not change throughout the financial year.

Will get benefit in income tax return

Om Rajpurohit, joint partner (corporate and international tax) of AMRG & Associates, said that the current notification is for a limited period. This last date is from June 1, 2020 to the financial year 2024-25. In view of this, CBSE can apply to CBDT for special permission to revise the income tax returns of previous years and can claim ‘refund’ of the tax paid on the assessed income.

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In the new financial year, the rules of Public Provident Fund (PPF), popular among employed people, have changed. Now PAN and Aadhaar number have been made mandatory for investors investing in this scheme.

Earlier investment was allowed without submission of Aadhaar number. Apart from PPF, these new investment rules will also be applicable in other small savings schemes.

Interest blow: The government has increased interest rates on most small savings schemes for the April-June quarter of FY 2023-24. However, the interest rate on PPF remains unchanged at 7.1 per cent for the April-June quarter. The interest of this scheme has not increased for almost 12 quarters.

What is PPF Scheme: This scheme comes under Small Savings Scheme. Under this scheme, you can start investing from Rs.500. A maximum of Rs 1.5 lakh can be invested per year. The scheme has a lock-in period of 15 years. You can withdraw money before the lock-in period subject to certain conditions.

Tax exemption also: In this scheme, you can also get tax exemption under the old tax regime. Let us tell you that loan facility is also available on PPF. At the same time, if you want the benefit of more interest under the scheme, then the amount will have to be deposited between 1st to 4th of the month. This will also entitle you to the interest for the month you start the investment.

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Now under the Finance Bill 2023, tax exemption has also been given on income of more than Rs 7 lakh. For this, amendments have been made in the Finance Bill. Under this, individuals earning income slightly above the tax free income of Rs 7 lakh will have to pay tax only on the additional income.

The Finance Bill 2023 has been approved by the Parliament and it will become effective from 1 April. In this, some relief has been given to taxpayers under the new tax regime through amendment.

The Finance Ministry explained the rules, while clarifying the provision of Finance Bill 2023, the Finance Ministry has said that under the new tax regime, if a taxpayer’s annual income is Rs 7 lakh, then there is no tax liability on him. But if the income becomes Rs 7,00,100, then the tax liability becomes Rs 25,010. That is, due to additional income of only Rs 100, taxpayers have to pay tax of Rs 25,010. In view of this problem of taxpayers, it has been proposed to give minor relief through amendment in Finance Bill 2023.

Taxpayers will get the benefit of small margin

Let us understand this relief given by the government to the taxpayers through an example. Suppose your income is Rs 7,00,100 means Rs 7 lakh 100 means your income is Rs 100 more than tax free income. Now you have to pay tax of Rs 25,010 because of the excess of just Rs 100. The government has given relief to such taxpayers. Under the new proposal, if your income is Rs 7,00,100, then they will not have to pay tax of Rs 25,010. Rather, they will have to pay tax only on Rs 100. Tax experts have told according to the calculation that individual taxpayers whose income is up to Rs 7,27,777 can get the benefit of this provision.

Income up to Rs 7 lakh was tax-free in the budget.

In Budget 2023, Finance Minister Nirmala Sitharaman had announced that now those earning up to Rs 7 lakh will not have to pay any tax. Earlier, after adopting the tax exemption options, no tax had to be paid up to 5 lakhs. But the new tax regime will give an additional benefit of Rs 2 lakh.

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This is the time when people also start investing in many investment tools in order to save tax. Under Section 80C of the Income Tax Act, you get Tax Deduction (Tax Benefit under 80C) on giving proof of your many investments, there is an advantage of investing in such, but there are many taxpayers, who invest due to their economic status. If they are unable to do so, how can they save tax?

It is a matter of relief that such taxpayers Means of saving tax have also been found for them, in which they do not need to invest separately to save tax (How to save tax with zero investment). They can get tax exemption even by showing some of their expenses, that too in a legal way.

Where will the tax be saved without investment? (Tax Saving Tools)

1. HRA or House Rent Allowance (Tax Deduction on HRA)

If you live in a rented house, then you have the most primary tool to save tax. A part of your salary goes towards renting accommodation. You get tax exemption on HRA under Section 10(13A) of Rule 2A of the Income Tax Act, 1961. In tax deduction, HRA is partially as well as fully tax exempt.

2. Education Loan (Tax Deduction on Education Loan)

Although you do not get tax exemption on loan, but you get exemption on education loan. Education loan provides coverage for your higher education expenses and loan repayments. Under section 80E of the IT Act, you get tax exemption on the interest paid on education loan (tax deduction on education loan interest). That is, you can claim tax exemption on the amount spent from your pocket to repay the loan installments. When you claim a deduction on the total interest payable, the same amount is reduced from your overall gross income. It gets less.

3. Home Loan (Tax Deduction on Home Loan)

You also get tax deduction on housing loan. You have to repay the principal amount along with interest on your loan, that too within the end of the loan tenure. Under Section 24(b) of the Income Tax Act, if you are repaying the loan for the house in which you are living, you can get a tax exemption of up to Rs 2 lakh.

On the other hand, if you buy an under-construction house property, you can claim tax exemption on it only after the completion of the construction work. On the other hand, if you have bought a fully constructed house, then you can claim tax deduction on home loan repayment immediately on the interest paid on the housing loan.

4. Tax Deduction on Children’s Tuition Fees, Education Allowance, and Hostel Allowance

If you have children, who are studying, then you can also claim tax deduction on some of their education expenses. You can claim exemption on your child’s tuition fees, hostel expenses, education allowance. Under Section 10 of the IT Act, you get the option to claim them. Let us tell you that you can claim a rebate of Rs 1,200 per annum on the expenses of children and Rs 3,600 per annum on hostel expenses of maximum two children.

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According to the income tax rules, buying LIC’s policy gives the benefit of tax exemption. Insurance companies are in a very strong position because of tax exemption. Customers mostly take LIC’s policy only to save tax.

While giving information, the chairman of LIC has told that about half of the total annual premium of the company comes in the months of January, February and March. Let us tell you that at the end of the financial year, people show a lot of interest in buying insurance policies. People invest money in insurance policies to save their tax without thinking.

Big decisions taken in the budget

Let us tell you that in the budget 2023, the central government has decided that from now onwards tax will have to be paid on the maturity of the policy with a premium of more than Rs 5 lakh. Along with this, the government is promoting the new tax regime across the country, in which there is no exemption on tax. That is, those who now take LIC policy to save tax, they can also stop taking it in future.

The effect will be seen on the growth of LIC

Let us tell you that in the coming times, the effect of this decision of the government on the insurance companies can be seen. Its direct effect will be seen on the growth of LIC.

Giving further information, the chairman of LIC has said that it is expected to have little impact as at present there are less than 1% policies whose premium is more than Rs 5 lakh. On the other hand, if a person has more than one LIC policy and their total premium together is more than 5 lakhs, then the customer will get the benefit of tax exemption on this.

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Due to which now those having an annual income of seven lakh rupees will not have to pay any tax. However, this can be possible due to the rebate given by the government. This exemption is available under Section 87A of the Income Tax Act. In 2013-2014, tax rebate was introduced under Section 87A through the Government of India. Presenting the Union Budget 2023-24 on February 1, 2023, Finance Minister Nirmala Sitharaman has announced a change in this income tax exemption under the new income tax regime. Let’s know about it…

What is Income Tax Rebate?

Simply put, income tax rebate is a form of refund on your income. The Income Tax (IT) Department provides this refund or exemption under certain circumstances. Taxpayers are liable to get income tax rebate when they have paid tax in excess of the amount payable to the Income Tax Department in a financial year. To avail income tax exemption, you must ensure that you calculate your tax liability correctly and file your income tax return within the stipulated time.

What is section 87A?

Under the provisions of section 87A of the Income Tax Act, a resident Indian individual whose total income for the financial year does not exceed the prescribed limit, is provided a rebate of 100% on the income tax payable. Till the financial year 2022-23, the income limit for claiming exemption under section 87A was Rs 5 lakh. This means that for the financial year 2022-23, a person whose income was up to Rs 5 lakh was not required to pay any income tax.

Tax Exemption

The maximum income limit for claiming exemption under section 87A has been amended from time to time. In the Union Budget 2019, the government increased the maximum limit of net taxable income to Rs 5 lakh for claiming exemption under section 87A. At the same time, in the Union Budget 2023, Finance Minister Nirmala Sitharaman announced that the rebate under Section 87A will be increased from Rs 5 lakh to Rs 7 lakh, which has brought a big sigh of relief for India’s growing middle class population.

Tax Slab

In the new tax regime, the exemption limit has now been increased to Rs 7 lakh. Thus, in the new tax system, people with income up to Rs 7 lakh will not have to pay any tax. This means that from FY 2023-24 an individual taxpayer who is a resident of India will now be entitled to claim income tax rebate of 100% of the income tax payable on total income above Rs 7 lakh.

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After the announcement of the Finance Minister, especially middle class salary employees are looking for saving options to save tax. However, only those who have opted for the old tax regime will get tax relief through savings. If you have not done this, then from April 1, 2023, the new tax system will be implemented by default. In such a situation, apart from 80C, there are many options related to savings to save tax.

National Pension Scheme

National Pension Scheme (NPS) is a good option to save and save tax. Along with this, this system also secures your old age. Under section 80CCD (1B), if you invest in the National Pension Scheme, you get an additional tax rebate of up to Rs 50,000. If someone has crossed his annual investment limit of Rs 1.50 lakh, he can get tax exemption by investing up to Rs 50,000 in a financial year in NPS.

Tax exemption on home loan

Home loan is a good option to save tax. Tax exemption can be availed on home loan interest up to Rs 2 lakh. For this, the taxpayer will have to tell about the loan and its EMI and interest payment while filing the return.

Let us tell you that you will get this exemption only when you are living in that unit or that unit should be in your name. Under section 80TTA of Income Tax, you can get relief from TDS in interest up to Rs 10,000 in a financial year. This rule applies to all bank’s savings accounts. If you have more than one savings account, the taxpayer is advised to calculate the interest earned from all the accounts. At the same time, senior citizens can get tax exemption of up to Rs 50 thousand in interest under section 80TTB.

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The Finance Minister has taken care of everything from job professionals to farmers and women in the budget. Along with this, the government has also provided relief to the pensioners. For the first time in the country, family pensioners will get the benefit of Standard Deduction. Family pension is the pension which is received by the dependent of an employee after his death.

Finance Minister Nirmala Sitharaman announced in her budget speech today that pensioners getting family pension will also be able to avail standard deduction of Rs 15,000. Except those getting family pension, first other pensioners and salaried employees are getting the benefit of standard deduction. Under this, they can get a discount of up to Rs 50,000.

How much benefit will the family pensioners get?

In the budget, the Finance Minister for the first time announced the benefit of standard deduction on family pension as well. This means that now the taxable income of the person receiving family pension will also be calculated after deducting Rs 15,000 from the total income.

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 of getting 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.

In India, before the year 2005, there was a provision of standard deduction for salaried individuals, but it was discontinued in the 2005 budget. In the budget of the year 2018, the standard deduction was again implemented and the exemption available in the form of transport allowance and medical reimbursement was abolished.

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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.

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One of the main reasons for this is that the Lok Sabha elections are to be held next year, in view of which the central government can make populist announcements. The Union Finance Minister will present the budget from 11 am on Wednesday.

It is noteworthy that since 2014, there has been no change in any slab regarding income tax exemption. That’s why it is expected that the government can end the drought of 9 years this time. However, in the 2020 budget, Finance Minister Nirmala Sitharaman had announced to implement a new alternative tax system.

Income tax rates likely to be simplified 

In Budget 2020, Finance Minister Nirmala Sitharaman announced a new alternative tax regime with higher tax slabs and lower tax rates. But the tax payers did not get much relief from the new tax system. Therefore, the demand for reducing the tax rate applicable to individual taxpayers still remains, as there is a huge difference between the corporate and personal tax rates.

Increase in Basic Exemption For individuals up to the age of 60 years, income up to Rs 2.5 lakh is tax free. For taxpayers in the age group of 60-80 years and for those above 80, the exemption limit is Rs 3 lakh and Rs 5 lakh respectively. Many tax experts believe that it needs to be increased.

According to Archit , founder and CEO of tax and investment platform Clear, it has been almost a decade since the exemption limit was amended. Archit Gupta believes that taxpayers are expecting relief in the form of either an increase in the basic exemption limit from Rs 2.5 lakh to Rs 5 lakh or a reduction in tax rates. He said that taxpayers also expect that deduction under section 80C and 80D will be increased.

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It has been decided to give big relief to taxpayers in exemption. Its new order has been issued by the Finance Ministry.

Tax will not have to be paid on this amount The Income Tax Department has recently issued a new order for tax exemption, giving great relief to taxpayers. According to this new order, from now on taxpayers will get the benefit of exemption in income tax on the amount received for treatment. That is, you will not have to pay tax on this amount.

CBDT has released the form for exemption

Let us tell you that the Income Tax Department keeps on changing the rules from time to time keeping in mind the facilities of the taxpayers. Information in this regard has been given by the Central Board of Direct Taxes (CBDT). CBDT had recently also issued a form for income tax exemption on new conditions and expenses incurred on the treatment of corona.

Documents to be submitted along with the form

According to the notification of 5 August 2022, from now on your employer will have to submit a form to the Income Tax Department along with some documents, on the amount received from the employer or relatives for the treatment of corona. Tax exemption can be claimed.

Apart from this, the Income Tax Department had digitized the tax exemption form keeping in mind the facilities of the people and to promote digitization, so that people do not face any kind of trouble and Had to go round the offices.

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The Central Government prepares to provide some relief to all sections including the poor, women, farmers and the elderly. This time it is expected that there can be an increase in the pension scheme of the elderly population. Along with this, these people can also get the benefit of exemption in income tax.

You can get 3 big gifts before the general budget, some non-governmental organizations (NGOs) have given suggestions to take steps for the betterment of the elderly population of the country. These include increase in old age pension, additional income tax relief and GST exemption on products used repeatedly by older people.

Age well Foundation demands

NGO Agewell Foundation said that in view of the increasing gap between old and young generation, changes in the lifestyle of older people in the light of longer life span, favorable provisions should be made in the budget. The Foundation said in a statement that it is necessary to engage with a large number of retired people to keep them continuously active.

Pension should be revised

The Foundation has appealed to the Ministry of Finance and other stakeholders to consider its recommendations and suggestions while finalizing the next budget. The statement said that the old age pension should be revised according to the current inflation.

Pension to be increased by Rs 3000 per month

The statement said that the present share of the central government in the monthly old age pension should be increased to Rs 3,000 per month for each eligible old age person. The State Government should also be advised to revise its share accordingly.

Interest increased on investment schemes

Apart from this, the Foundation has demanded an increase in the interest rate on bank, post office and other deposit and investment schemes for the elderly under financial security measures. It has been said that more relief should be given in income tax, especially for old people.

GST exemption on these products

NGO has audited services and products frequently used by the elderly such as audit diapers, medicines, healthcare equipment like wheelchairs and walkers, hospitalization of elderly patients above 70 years, Mediclaim policies and medical consultation There has also been a demand for GST exemption on the fee.

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It has been decided to give big relief to taxpayers in exemption. Its new order has been issued by the Finance Ministry.

Tax will not have to be paid on this amount The Income Tax Department has recently issued a new order for tax exemption, giving great relief to taxpayers. According to this new order, from now on taxpayers will get the benefit of exemption in income tax on the amount received for treatment. That is, you will not have to pay tax on this amount.

CBDT has released the form for exemption

Let us tell you that the Income Tax Department keeps on changing the rules from time to time keeping in mind the facilities of the taxpayers. Information in this regard has been given by the Central Board of Direct Taxes (CBDT). CBDT had recently also issued a form for income tax exemption on new conditions and expenses incurred on the treatment of corona.

Documents to be submitted along with the form

According to the notification of 5 August 2022, from now on your employer will have to submit a form to the Income Tax Department along with some documents, on the amount received from the employer or relatives for the treatment of corona. Tax exemption can be claimed.

Apart from this, the Income Tax Department had digitized the tax exemption form keeping in mind the facilities of the people and to promote digitization, so that people do not face any kind of trouble and Had to go round the offices.

The post Big relief to income tax payers, new order issued, tax exemption announced! first appeared on Rightsofemployees.com.

In fact, industry body Assocham has demanded the government to double the income tax exemption limit in the next budget. Assocham has said that if the tax exemption limit is increased from the current Rs 2.5 lakh to Rs 5 lakh, then the demand will increase. This will boost consumption in the economy. At present, income up to Rs 2.5 lakh is not taxed for common citizens. This limit is Rs 3 lakh for senior citizens and Rs 5 lakh for super senior citizens (80 years).

Now companies are insisting on increasing capacity

Assocham President Sumant Sinha said that companies in sectors like steel and cement are now planning to increase capacity. Talking about the risks, he said that there could be a global recession and this would affect foreign trade. In such a situation, India’s GDP can also be affected.

In its pre-budget recommendations, Assocham said the government should raise the income tax exemption limit to at least Rs 5 lakh to leave more disposable income in the hands of the consumer. The industry body said that this should boost consumption in the economy.

Consumption will get a boost

Sinha said that due to the boom in both direct and indirect taxes, the government has enough scope to increase the income tax exemption limit. Assocham Secretary General Deepak Sood said that leaving more money in the hands of the consumer would encourage consumption, which would have a positive impact on economic growth.

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The most expected from the budget are job professionals and farmers. Apart from this, the Income Tax Deptt keeps on changing the rules from time to time for the convenience of taxpayers. Now the department has given exemption from income tax on the amount received by the taxpayers for treatment.

Announcement to set up a committee for redressal of complaints

Apart from this, tax exemption has also been given on the amount of assistance received by the Income Tax Department on the death of any family member during Corona. It has also been announced to form local committees for early redressal of any kind of complaints from the department. Apart from this, many types of service and related forms have been digitized by the Income Tax Department for the purpose of promoting digitization and convenience of the people. Now you will not need to go round the office for all kinds of work.

More than 123 forms will be available online

Let us tell you that more than 123 forms will be made available online by the department to ease the work related to income tax. Apart from this, the department has also announced tax exemption on the amount received for treatment during the Corona period in the years 2020 and 2021. In fact, during the Covid period, all the families had received assistance for the treatment of Covid. Till now there was provision of income tax on it. But now there will be relief from this.

Apart from this, SOP has also been issued to provide video conferencing. Grievance portal ‘Samadhan’ has been started to redress the grievances of tax payers.

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The Central Government prepares to provide some relief to all sections including the poor, women, farmers and the elderly. This time it is expected that there can be an increase in the pension scheme of the elderly population. Along with this, these people can also get the benefit of exemption in income tax.

You can get 3 big gifts before the general budget, some non-governmental organizations (NGOs) have given suggestions to take steps for the betterment of the elderly population of the country. These include increase in old age pension, additional income tax relief and GST exemption on products used repeatedly by older people.

Agewell Foundation demands

NGO Agewell Foundation said that in view of the increasing gap between old and young generation, changes in the lifestyle of older people in the light of longer life span, favorable provisions should be made in the budget. The Foundation said in a statement that it is necessary to engage with a large number of retired people to keep them continuously active.

Pension should be revised

The Foundation has appealed to the Ministry of Finance and other stakeholders to consider its recommendations and suggestions while finalizing the next budget. The statement said that the old age pension should be revised according to the current inflation.

Pension to be increased by Rs 3000 per month

The statement said that the present share of the central government in the monthly old age pension should be increased to Rs 3,000 per month for each eligible old age person. The State Government should also be advised to revise its share accordingly.

Interest increased on investment schemes

Apart from this, the Foundation has demanded an increase in the interest rate on bank, post office and other deposit and investment schemes for the elderly under financial security measures. It has been said that more relief should be given in income tax, especially for old people.

GST exemption on these products

NGO has audited services and products frequently used by the elderly such as audit diapers, medicines, healthcare equipment like wheelchairs and walkers, hospitalization of elderly patients above 70 years, mediclaim policies and medical consultation There has also been a demand for GST exemption on the fee.

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The biggest demand is that the taxable income limit should be increased from 2.5 lakhs to 5 lakhs (taxable income limit). According to media report, the government can give good news on this. Sources told that the government can make changes in the New Tax Regime to make the new tax system attractive. After the presentation of the budget, income up to Rs 5 lakh may become tax free.

Income up to 5 lakh can be exempted (Tax Exemption Limit)

It is reported quoting sources that the government’s focus is on making the new tax system attractive. Under this, it is being considered to give tax exemption on income up to 5 lakhs. At present, no tax has to be paid on income up to Rs 2.5 lakh. At the same time, there is a provision of 5% tax on income between 2.5 lakh to 5 lakh. At the same time, there is no tax on income of 5 lakhs in the old tax system. In such a situation, the government is considering making these changes to make the new tax system more popular.

It is known that the inclusion of exemption on home loan interest in the new tax system is under consideration. Along with this, preparations are being made to include standard deduction exemption in the new tax system. In the new tax system, 30% tax can also be reduced. Even in the old tax system, the tax rate of 5-15 lakhs can be reduced.

The government had optionally introduced a new tax regime in the 2020 budget, in which six new slabs were introduced – 5%, 10%, 15%, 20%, 25%, and 30%. There are three slabs of 5%, 20% and 30% in the old slab, with which all the benefits of tax deduction are available, which are not available in the new tax regime.

At the same time, in the new regime, there is no tax on annual income of 2.5 lakhs. Income up to 2.5-5 lakhs is taxed at 5%. 10% tax on annual income of 5-7.5 lakhs, 15% on income between 7.5 lakhs and 10 lakhs, 20% tax on income between 10 and 12 lakhs, 25% between 12.5 lakhs and 15 lakhs and 15 lakhs Income above 30% is taxed annually.

Government can take big decisions in the last full budget

Modi government is going to present its last full budget this year in Modi 2.0 tenure. In such a situation, it is being speculated that the government can bring a populist budget this time. Lok Sabha elections are going to be held next year, in such a situation only the interim budget has to come next year, so the government can take big decisions only this year. Tax exemption can be a big announcement, so it is expected that this time there can be relief in tax.

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He has been demanding from the Finance Minister for a long time to increase the limit of exemption available under 80C. If tax experts are to be believed, then they are expecting that the government can make big announcements in this budget. Lok Sabha elections are going to be held in the year 2024 and this is the last budget before the Lok Sabha elections.

In such a situation, the government can make populist announcements in this budget. There can be such announcements in this budget in which the income of the common people will increase and there will be more discount on savings. Finance Minister Nirmala Sitharaman may increase the limit of 80C in the budget to be presented on February 1, 2023, increase the limit of investment in PPF, increase the limit of taxable income to Rs 5 lakh.

Increased limit of exemption available under 80C

All the employed employees are giving this suggestion to Finance Minister Nirmala Sitharaman for the budget that the government should increase the limit of exemption under 80C. The government has not made any specific announcement for 80C for many years. All taxpayers and salaried individuals invest in tax saving options to get Rs 1.50 off in tax under 80C. Employed people are demanding to increase this limit from Rs 1.50 lakh to Rs 2 lakh.

Tax free income should be increased

If tax experts are to be believed, then income up to Rs 2.50 lakh is tax free for salaried taxpayers. The government should increase this limit to Rs 5 lakh. After Kovid, the need for savings has increased the most. By doing this the disposable income of the government will increase and this will only benefit the economy.

Maximum tax slab should be reduced

The maximum tax slab in income tax should be reduced to 25 per cent as at present the highest tax slab is 42.74 per cent including surcharge and cess. The government also needs to reduce the maximum tax slab. All taxpayers are expecting that the government will make big announcements for common taxpayers on 1st February.

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The Central Government prepares to provide some relief to all sections including the poor, women, farmers and the elderly. This time it is expected that there can be an increase in the pension scheme of the elderly population. Along with this, these people can also get the benefit of exemption in income tax.

You can get 3 big gifts before the general budget, some non-governmental organizations (NGOs) have given suggestions to take steps for the betterment of the elderly population of the country. These include increase in old age pension, additional income tax relief and GST exemption on products used repeatedly by older people.

Age well Foundation demands

NGO Agewell Foundation said that in view of the increasing gap between old and young generation, changes in the lifestyle of older people in the light of longer life span, favorable provisions should be made in the budget. The Foundation said in a statement that it is necessary to engage with a large number of retired people to keep them continuously active.

Pension should be revised

The Foundation has appealed to the Ministry of Finance and other stakeholders to consider its recommendations and suggestions while finalizing the next budget. The statement said that the old age pension should be revised according to the current inflation.

Pension to be increased by Rs 3000 per month

The statement said that the present share of the central government in the monthly old age pension should be increased to Rs 3,000 per month for each eligible old age person. The State Government should also be advised to revise its share accordingly.

Interest increased on investment schemes

Apart from this, the Foundation has demanded an increase in the interest rate on bank, post office and other deposit and investment schemes for the elderly under financial security measures. It has been said that more relief should be given in income tax, especially for old people.

GST exemption on these products

NGO has audited services and products frequently used by the elderly such as audit diapers, medicines, healthcare equipment like wheelchairs and walkers, hospitalization of elderly patients above 70 years, Mediclaim policies and medical consultation There has also been a demand for GST exemption on the fee.

The post Super Pension for Senior Citizens: Pension will increase by Rs 3,000 per month! Tax exemption will also be available first appeared on Rightsofemployees.com.

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.

It has been decided to give big relief to taxpayers in exemption. Its new order has been issued by the Finance Ministry.

Tax will not have to be paid on this amount The Income Tax Department has recently issued a new order for tax exemption, giving great relief to taxpayers. According to this new order, from now on taxpayers will get the benefit of exemption in income tax on the amount received for treatment. That is, you will not have to pay tax on this amount.

CBDT has released the form for exemption

Let us tell you that the Income Tax Department keeps on changing the rules from time to time keeping in mind the facilities of the taxpayers. Information in this regard has been given by the Central Board of Direct Taxes (CBDT). CBDT had recently also issued a form for income tax exemption on new conditions and expenses incurred on the treatment of corona.

Documents to be submitted along with the form

According to the notification of 5 August 2022, from now on your employer will have to submit a form to the Income Tax Department along with some documents, on the amount received from the employer or relatives for the treatment of corona. Tax exemption can be claimed.

Apart from this, the Income Tax Department had digitized the tax exemption form keeping in mind the facilities of the people and to promote digitization, so that people do not face any kind of trouble and Had to go round the offices.

The post Big relief to income tax payers, new order issued, tax exemption announced! first appeared on Rightsofemployees.com.

This package will be given under Special Assistance for Capital Investing Scheme. The government had mentioned the Special Assistance Scheme for Capital Investing to the states during the 2022-23 budget. An allocation of Rs 1.05 lakh crore was made under this scheme. Under this scheme, interest-free loans are given to state governments for capital projects for 50 years.

What did the government announce regarding the scam?

Now the central government has given an additional package of 2000 crores under this, so that the states move forward in the direction of scrapping the vehicles. Along with this, if a person scraps his vehicle which is 15 years old, then he will also be exempted from tax. Explain that the Finance Ministry had written in its letter that the road transport sector has been identified for giving incentives, after which this decision has come to the fore.

Rs 41,118 crore released to states

As an incentive to road transport, old vehicles have been added for scrapping and the state has announced a package of 2,000 crores. A package of Rs 1.05 lakh crore was also announced under the scheme presented in the budget for road transport, which has been later increased to Rs 1.07 lakh crore.

So far, the government has sanctioned Rs 77,110 crore under the scheme, out of which Rs 41,118 crore has been released to the states. The objective of the scheme is to encourage states to undertake capital expenditure and Rs 80,000 crore has been earmarked for this. Huh.

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The most expected from the budget are job professionals and farmers. Apart from this, the Income Tax Deptt keeps on changing the rules from time to time for the convenience of taxpayers. Now the department has given exemption from income tax on the amount received by the taxpayers for treatment.

Announcement to set up a committee for redressal of complaints

Apart from this, tax exemption has also been given on the amount of assistance received by the Income Tax Department on the death of any family member during Corona. It has also been announced to form local committees for early redressal of any kind of complaints from the department. Apart from this, many types of service and related forms have been digitized by the Income Tax Department for the purpose of promoting digitization and convenience of the people. Now you will not need to go round the office for all kinds of work.

More than 123 forms will be available online

Let us tell you that more than 123 forms will be made available online by the department to ease the work related to income tax. Apart from this, the department has also announced tax exemption on the amount received for treatment during the Corona period in the years 2020 and 2021. In fact, during the Covid period, all the families had received assistance for the treatment of Covid. Till now there was provision of income tax on it. But now there will be relief from this.

Apart from this, SOP has also been issued to provide video conferencing. Grievance portal ‘Samadhan’ has been started to redress the grievances of tax payers.

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Fixed deposit scheme of post office is called term deposit scheme. You can invest money in this scheme for 1 year, 2 years, 3 years and five years. Recently, the government has increased the interest rates of many small savings schemes. These include the name of Post Office’s Time Deposit Scheme.

Customers getting higher interest rate

The government has increased the interest rates of post office time deposit scheme by 20 basis points on January 1, 2023. After this increase, now the five-year FD scheme of the post office is getting 7.00 percent interest rate. Customers are getting 6.6 percent interest rate on 1 year FD. At the same time, 6.8 percent interest rate is being offered on FD of 2 years and 6.9 percent on FD of 3 years.

Will get the benefit of tax exemption

By investing in Post Office Time Deposit Scheme for 5 years, you will get a deduction of Rs 1.5 lakh under Section 80C of Income Tax, 1961. Along with this, you can invest in this scheme in multiples of Rs 1,000 to a maximum of 100 as per your need. There is no limit to the maximum investment in this.

Special features of Post Office Time Deposit Scheme-

• You can open this account as a single account.
• You can open this account as a joint account with two or three people.
• You can open this account for a minor child (above 10 years) under parental supervision.

How much return will you get-

If you invest money in the time deposit scheme of the post office for 5 years, then at the rate of 7 per cent you will get Rs 2,07,389 as interest. In this case, on maturity, you will be the owner of the entire Rs 7,07,389. Whereas, if you reinvest this amount, you will get a total of Rs 10,00,799 on maturity.

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The Central Government prepares to provide some relief to all sections including the poor, women, farmers and the elderly. This time it is expected that there can be an increase in the pension scheme of the elderly population. Along with this, these people can also get the benefit of exemption in income tax.

You can get 3 big gifts before the general budget, some non-governmental organizations (NGOs) have given suggestions to take steps for the betterment of the elderly population of the country. These include increase in old age pension, additional income tax relief and GST exemption on products used repeatedly by older people.

Agewell Foundation demands

NGO Agewell Foundation said that in view of the increasing gap between old and young generation, changes in the lifestyle of older people in the light of longer life span, favorable provisions should be made in the budget. The Foundation said in a statement that it is necessary to engage with a large number of retired people to keep them continuously active.

Pension should be revised

The Foundation has appealed to the Ministry of Finance and other stakeholders to consider its recommendations and suggestions while finalizing the next budget. The statement said that the old age pension should be revised according to the current inflation.

Pension to be increased by Rs 3000 per month

The statement said that the present share of the central government in the monthly old age pension should be increased to Rs 3,000 per month for each eligible old age person. The State Government should also be advised to revise its share accordingly.

Interest increased on investment schemes

Apart from this, the Foundation has demanded an increase in the interest rate on bank, post office and other deposit and investment schemes for the elderly under financial security measures. It has been said that more relief should be given in income tax, especially for old people.

GST exemption on these products

NGO has audited services and products frequently used by the elderly such as audit diapers, medicines, healthcare equipment like wheelchairs and walkers, hospitalization of elderly patients above 70 years, mediclaim policies and medical consultation There has also been a demand for GST exemption on the fee.

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But before the budget, the Finance Minister has given a big gift to the senior citizens. The rules have been amended for this. Fulfilling the promise made to senior citizens, the Finance Ministry has given information about this by tweeting.

what was said in the tweet

According to the tweet, senior citizens above 75 years of age, who have only pension and bank interest as their source of income, will get relief. Apart from this, there will be no need for them to file income tax. The round of discussions is going on before the budget 2022 regarding relief in income tax. Employed people are waiting for relief in the income tax slab. But before that good news has come for the elderly.

As announced in Budget FY 2022-23, senior citizens above 75 years of age, having only pension and interest income, are now exempted from filing Income Tax Return. #PromisesDelivered pic.twitter.com/iuyIzyQPnJ

— NSitharamanOffice (@nsitharamanoffc) January 5, 2023

Will get tax exemption

In the tweet, the Finance Ministry said that tax exemption has been given to elders above 75 years of age. Relief will be given to those people whose income is pension or interest from banks. For this, the government has added a new section in the Income Tax Act. In order to benefit citizens above 75 years of age, a new section section 194-P has been added by amending the rules of the Income Tax Act, 1961. Banks have also been informed about this amendment.

The Central Board of Direct Taxes has said that notification has been issued for the forms and conditions related to it. Along with this, necessary changes have also been made in Rule 31, Rule 31A, Form 16 and 24Q of the tax. The Finance Minister had also announced about this in the 2022 budget. Now the bank in which the elderly will have an account, the same bank will deduct whatever tax is made on their income. For exemption in tax return, senior citizens will have to fill Form 12BBA and submit it to the bank.

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Whether this will happen or not will be known only on February 1, but before that the Government of India has given a big relief to the taxpayers. On behalf of Finance Minister Nirmala Sitharaman, this relief has been given to senior citizens above 75 years.

The Finance Ministry has tweeted from its official Twitter handle that citizens above 75 years of age who have only pension and bank interest as their source of income do not need to file income tax returns. This is expected to bring great relief to senior citizens. Actually, it becomes difficult for them to file taxes and returns. In view of this, this step of the government was very important.

Added new section

The government has added a new section in the Income Tax Act to give this exemption. In order to give relief to citizens above 75 years of age in income tax return, the Income Tax 1961 rule has been amended and a new section, Section 194-P, has been added to it. Banks have been informed about this change made by the government.

Finance Minister had announced

Finance Minister Nirmala Sitharaman had announced this last year. The Central Board of Direct Taxes (CBDT) has said that a notification regarding the new rules has been issued. Necessary changes have been made in Rule 31, Rule 31A, Form 16 and 24Q of Income Tax. As per the changes, it is not necessary for citizens above 75 years of age to file ITR. The bank in which he will have his account, that bank will automatically deduct the tax on income and file the return. For this, citizens will have to fill 12 BBA forms and submit them to their bank.

Who is getting tax exemption

now? At present, the government gives tax exemption on annual income up to Rs 2.5 lakh. However, it is also necessary for them to file income tax returns. Through this, he can claim refund on the TDS taken from him. Please tell that tax is definitely made on the income of 2.5 to 5 lakhs, but it is so less that it gets adjusted within the rebate itself.

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The budget day is slowly coming closer. Along with this, activities related to Income Tax have also started. Investment proof is being sought from those working in offices. It will be decided on the basis of investment proof whether your salary will come in full or less in the next month. If you have not submitted the proof of tax saving, then the salary will be sent to your account after deducting income tax. For investment proof, you have to submit proof of where you have invested. First the employee has to inform his office where he is investing. After this, its proof is sought in January.

Under Section 80C of Income Tax, tax exemption can be taken on investment up to Rs 1,50,000. That is, under this section 80C, you can reduce your total taxable income by Rs 1,50,000 by making different investments. Proof of investment: Life Insurance Policy premium receipt, ULIP premium proof, Equity Linked Savings Scheme (ELSS) investment proof, PPF, Sukanya Samriddhi Yojana and NSC investment receipts made on home loan principal Can collect rebate on repair and health insurance premium.

Tax exemption limit

In the year 2014, the then Finance Minister Arun Jaitley increased the tax exemption limit from Rs 2 lakh to Rs 2.5 lakh and also increased the tax exemption limit under Section 80C from Rs 1 lakh to Rs 1.5 lakh. Tax exemption is given on different types of investments under Section 80C of the Income Tax Act. If you have forgotten to claim tax exemption on different types of investments in any year, then later you can claim tax exemption by filing income tax return.

To save tax, under Section 80C, you can invest in Mutual Fund Tax Funds (ELSS), Bank’s Tax Savings Fixed Deposit Scheme, NPS, PPF, Life Insurance Policy, National Savings Certificate and Post Office Senior Citizen Savings Scheme. Tax exemption is also available on the tuition fees of two children. For this, you have to give the fee certificate issued by the school. This is the only expense under section 80C that does not come under the purview of investment.

How to get benefit

If you want to avail tax exemption under section 80C, you have to invest before the end of the financial year. In the year in which you invest in this period, you will be able to get the benefit of tax exemption for the same year. It is up to you to decide how much to invest in which instrument. The total limit with you is Rs 1.5 lakh. Now whether you want to invest the entire money in a single instrument or invest some money in various mediums.

The amount you claim under this section is reduced from your gross total income. It is easy to calculate this income tax. Suppose your gross total income is Rs 10 lakh and you have claimed a deduction of Rs 1.5 lakh under section 80C. So your taxable income will be Rs 8.5 lakh.

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The most expected from the budget are job professionals and farmers. Apart from this, the Income Tax Deptt keeps on changing the rules from time to time for the convenience of taxpayers. Now the department has given exemption from income tax on the amount received by the taxpayers for treatment.

Announcement to set up a committee for redressal of complaints

Apart from this, tax exemption has also been given on the amount of assistance received by the Income Tax Department on the death of any family member during Corona. It has also been announced to form local committees for early redressal of any kind of complaints from the department. Apart from this, many types of service and related forms have been digitized by the Income Tax Department for the purpose of promoting digitization and convenience of the people. Now you will not need to go round the office for all kinds of work.

More than 123 forms will be available online

Let us tell you that more than 123 forms will be made available online by the department to ease the work related to income tax. Apart from this, the department has also announced tax exemption on the amount received for treatment during the Corona period in the years 2020 and 2021. In fact, during the Covid period, all the families had received assistance for the treatment of Covid. Till now there was provision of income tax on it. But now there will be relief from this.

Apart from this, SOP has also been issued to provide video conferencing. Grievance portal ‘Samadhan’ has been started to redress the grievances of tax payers.

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Many schemes of Post Office give benefits of lakhs to the people. Along with this, they also give the benefit of tax exemption and loan. In most of its schemes, a lump sum amount is given after completion of maturity. Under the Post Office’s Small Saving Scheme, annual tax rebate of up to Rs 1.5 lakh can be claimed on tax.

One such scheme of the post office is the Monthly Income Scheme, which comes under small savings schemes. This is a safe investment plan and after depositing money once in this, big money can be earned every month. In this scheme, an account can be opened by depositing only Rs.1000. You can open an account under the Monthly Income Scheme by visiting any nearest branch.

How much will be earned every month

If you want to earn money every month and deposit a lump sum of Rs 4.5 lakh in the Monthly Income Scheme, then you will get an amount of Rs 29,700 annually. If you want income on this amount every month, then you will be given Rs 2475. This amount will be given after the maturity period of 5 years. Also, an annual interest of 6.6 percent is given under the scheme. In this scheme, benefits can also be availed by opening a joint account.

What is the condition under this scheme

Any investor can take advantage of this scheme after 18 years. However, if you want to withdraw money from it after 1 year, then you will not be given this amount, but if you withdraw the amount between 3 to 5 years, then the money is returned by deducting 1% of the total principal amount.

What documents are needed

The scheme can be availed by visiting any nearest branch of the post office. To open an account under the scheme, you must have Aadhaar card, PAN card, income certificate, residence certificate and other documents.

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In fact, industry body Assocham has demanded the government to double the income tax exemption limit in the next budget. Assocham has said that if the tax exemption limit is increased from the current Rs 2.5 lakh to Rs 5 lakh, then the demand will increase. This will boost consumption in the economy. At present, income up to Rs 2.5 lakh is not taxed for common citizens. This limit is Rs 3 lakh for senior citizens and Rs 5 lakh for super senior citizens (80 years).

Now companies are insisting on increasing capacity

Assocham President Sumant Sinha said that companies in sectors like steel and cement are now planning to increase capacity. Talking about the risks, he said that there could be a global recession and this would affect foreign trade. In such a situation, India’s GDP can also be affected.

In its pre-budget recommendations, Assocham said the government should raise the income tax exemption limit to at least Rs 5 lakh to leave more disposable income in the hands of the consumer . . The industry body said that this should boost consumption in the economy.

Consumption will get a boost

Sinha said that due to the boom in both direct and indirect taxes, the government has enough scope to increase the income tax exemption limit. Assocham Secretary General Deepak Sood said that leaving more money in the hands of the consumer would encourage consumption, which would have a positive impact on economic growth.

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The most expected from the budget are job professionals and farmers. Apart from this, the Income Tax Deptt keeps on changing the rules from time to time for the convenience of taxpayers. Now the department has given exemption from income tax on the amount received by the taxpayers for treatment.

Announcement to set up a committee for redressal of complaints

Apart from this, tax exemption has also been given on the amount of assistance received by the Income Tax Department on the death of any family member during Corona. It has also been announced to form local committees for early redressal of any kind of complaints from the department. Apart from this, many types of service and related forms have been digitized by the Income Tax Department for the purpose of promoting digitization and convenience of the people. Now you will not need to go round the office for all kinds of work.

More than 123 forms will be available online

Let us tell you that more than 123 forms will be made available online by the department to ease the work related to income tax. Apart from this, the department has also announced tax exemption on the amount received for treatment during the Corona period in the years 2020 and 2021. In fact, during the Covid period, all the families had received assistance for the treatment of Covid. Till now there was provision of income tax on it. But now there will be relief from this.

Apart from this, SOP has also been issued to provide video conferencing. Grievance portal ‘Samadhan’ has been started to redress the grievances of tax payers.

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This time the central government is doing big planning regarding Income Tax. Finance Minister Nirmala Sitharaman will present the Budget 2023 on February 1, 2023, and this year a plan is being made to make major changes regarding tax, which is expected to provide great relief to taxpayers. If you also pay tax or come in the tax slab, then it is important for you to know what kind of changes the Central Government is going to make in the tax rates this time.

What is the opinion of the expert?

Many experts believe that the government can make changes in the tax slab in many ways. At the same time, many people believe that the rates and slabs of income tax will remain applicable which were implemented in the assessment year 2022-23.

What kind of tax exemption will be available?

Let us tell you that at present 2 types of arrangements are applicable in the country. You can choose according to yourself whether you have to pay tax in the new regime or in the old regime… but this time what kind of tax relief will the government give to the general public. It is very important to see this.

Income Tax Slabs and Rates 2023 (New Regime)

>> On annual income up to Rs 2.5 lakh – Zero tax
>> On annual income up to Rs 2.5-5 lakh – 5% tax
>> Annual income up to Rs 5-7.5 lakh On – 10% tax
>> On annual income up to Rs 7.50-10 lakh – 15% tax
>> On annual income up to Rs 10-12.5 lakh – 20% tax
>> On annual income up to Rs 12.5-15 lakh – 25% tax
>> 30% tax on annual income up to Rs 15-20 lakh >> 30% tax
on annual income above Rs 20 lakh

Income Tax Slabs and Rates 2023 (Old Regime)

>> On annual income up to Rs 2.5 lakh – Zero tax
>> On annual income up to Rs 2.5-5 lakh – 5% tax
>> Annual income up to Rs 5-10 lakh On – 20% tax
>> On annual income up to Rs 10-20 lakh – 30% tax
>> On annual income above Rs 20 lakh – 30% tax

The rate of 30 percent will be reduced to 25 percent , every year some special provisions are made in the budget by the government to give great relief to the income tax payers. This time the government is planning to make a major revision in the rates of income tax, after which tax payers will get a big relief. It is believed that the government can reduce the maximum rate of 30 percent to 25 percent and increase the maximum tax limit to 20 lakhs.

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The Pension Regulatory and Development Authority (PFRDA) has said in its proposal that private sector employees will also be given income tax exemption on contribution up to 24 per cent in NPS like government employees. At present, only government employees are given tax exemption of 24 percent.

According to media report, FRDA has said in its proposal sent to the Finance Ministry that corporate sector employees and professionals will also be given the benefit of tax rebate on the entire 24% amount on contribution to NPS. Presently such employees are given tax exemption only on contribution up to 20 per cent. Actually, under NPS, 10 per cent amount is deducted from the basic and DA of the employee, while the employer contributes 14 per cent to it.

From the financial year 2019-20, tax exemption is available on the entire 24 percent contribution made to the NPS account of central employees. In this, 10 percent of the employee and 14 percent of the employer remain. After this, from April 1, 2022, the scope of this income tax exemption was also extended to the employees of all the states. But, for private sector employees, this limit was limited to 20 per cent, which includes 10 per cent employee and 10 per cent employer’s contribution. Similarly, the scope of tax exemption for professionals is limited to only 20 per cent.

Exemption will remain like PF account

PFRDA Chairman Supratim Bandyopadhyay says that now that the central and state employees are being given tax exemption on the entire 14% contribution made by their employer, now the corporate sector employees will also get the benefit. must be given. Actually, with this step, the tax exemption available on NPS will reach equal to PF account. At present, 12 percent contribution is made by the employee in the PF account and 12 percent by the employer. In this way, tax exemption is given on the total amount of 24 percent.

Now tax rebate up to 50 thousand on pension also

PFRDA has now proposed to give a rebate of 50 thousand as standard deduction on the pension received under NPS. Actually, at present, the benefit of standard deduction of 50 thousand is given on salary during the job, while some employers give this benefit on pension also. But, pension under NPS is given by third party service provider. Therefore, this amount is taken as other income, on which the benefit of standard deduction is not available.

PFRDA chairman says that now the employees who buy annuity under NPS should also consider the income from it as part of their salary and get the benefit of standard deduction on that too. At present, the Finance Ministry is considering this proposal and a decision may be taken to extend 24% tax exemption to private sector employees on NPS.

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The government is running Sukanya Samriddhi Yojana for daughters . By investing in this scheme, parents can secure the future of their daughters. How to take advantage of it Sukanya Samriddhi Yojana is such a long term plan. By investing in this, you can add money from your daughter’s education to marriage expenses. Under Sukanya Samriddhi Yojana, the account of daughters below the age of 10 years is opened in the name of their parents only.

Under this scheme, you can invest from Rs 250 to Rs 1.50 annually. How many daughters will open an account from a family, earlier in this scheme, only two daughters’ account was exempted from tax under 80C. But now it has changed and under the rule, if two twin daughters are born after one daughter, then their account will also get tax exemption.

When can accounts be closed?

The account opened under Sukanya Samriddhi Yojana could be closed in the first two circumstances. If the girl child dies or if the address of the daughter’s residence is changed, then this account could be closed. But after the new change, the life-threatening illness of the account holder has also been included in it. The account opened under Sukanya Samriddhi Scheme can be closed prematurely even after the death of the parents.

How to open account?

To take advantage of this scheme, you can open an account by visiting any nearest post office or bank. Sukanya Samriddhi Yojana matures in 21 years. However, after the girl’s age is 18 years, money can be withdrawn from this account for studies. Full amount is available only after 21 years.

Documents required for Sukanya Samriddhi Yojana-

At the time of opening the account under Sukanya Samriddhi Yojana, it is necessary to give the girl’s birth certificate in the post office or bank. Also, the identity card and address proof of the girl and her parents are required.

How will the amount be deposited in the account?

The amount invested in the Sukanya Samriddhi Yojana account can also be deposited in cash, cheque, demand draft or in any such manner as the bank accepts.

How much interest will you get on investment?

At present, interest is getting at the rate of 7.6% on investment in Sukanya Samriddhi Yojana. Under this scheme, by investing a small amount, you can add lakhs of rupees. Sukanya Samriddhi Yojana is getting more interest than all the savings schemes of the bank or post office.

If you invest up to Rs 1000 every month under this scheme, then according to 7.6% interest rate, you will get an amount of more than Rs 10 lakh like this.
• Deposited in 1 month – Rs 1000
• Total deposit in 12 months Rs -12000
• Deposit up to 15 years – Rs -18,0000
• Total interest on deposit up to 21 years + Total deposit – Rs 329,212
• On attaining 21 years But after adding the total deposit + total interest, the money will be returned – Rs 10,18,425
• In this way, when your daughter is 21 years old, then lakhs of rupees will be deposited in her name. When you want your daughter to get married, then you can easily withdraw this money.

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Income tax slabs are different for different income groups. At the same time, people can pay income tax according to two slabs. In these one Old Tax Regime is included and there is also another New Tax Regime.

Tax Regime

The Finance Minister had introduced the new tax regime in the Union Budget 2020, wherein there is an option for individuals and HUFs (Hindu Undivided Families) to pay tax at lower rates without claiming deductions under various sections. Tax rates are different in Old Tax Regime and New Tax Regime. However, if the age of a taxpayer is less than 60 years, then he does not have to pay any tax on Rs 2.5 lakh annually.

Income Tax After this, taxpayers below the age of 60 years have to pay 5% tax on annual income between Rs 2.5 lakh and Rs 5 lakh. However, these people also get a tax rebate of 5 percent. But some people have been given tax exemption by the government even on higher annual income.

They are given tax exemption up to an income of 5 lakhs. In fact, the New Tax Regime rates have not been differentiated on the basis of age. However, under the Old Tax Regime, no tax is levied on an annual income of Rs 3 lakh for senior citizens, whose age is between 60 and 80 years. On the other hand, for Super Senior Citizens, whose age is more than 80 years, no tax has to be paid on annual income of Rs 5 lakh.

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The most expected from the budget are job professionals and farmers. Apart from this, the Income Tax Deptt keeps on changing the rules from time to time for the convenience of taxpayers. Now the department has given exemption from income tax on the amount received by the taxpayers for treatment.

Announcement to set up a committee for redressal of complaints

Apart from this, tax exemption has also been given on the amount of assistance received by the Income Tax Department on the death of any family member during Corona. It has also been announced to form local committees for early redressal of any kind of complaints from the department. Apart from this, many types of service and related forms have been digitized by the Income Tax Department for the purpose of promoting digitization and convenience of the people. Now you will not need to go round the office for all kinds of work.

More than 123 forms will be available online

Let us tell you that more than 123 forms will be made available online by the department to ease the work related to income tax. Apart from this, the department has also announced tax exemption on the amount received for treatment during the Corona period in the years 2020 and 2021. In fact, during the Covid period, all the families had received assistance for the treatment of Covid. Till now there was provision of income tax on it. But now there will be relief from this.

Apart from this, SOP has also been issued to provide video conferencing. Grievance portal ‘Samadhan’ has been started to redress the grievances of tax payers.

The post Tax Exemption for Tax Payers: Relief to those who pay income tax, employed will be benefited! first appeared on Rightsofemployees.com.

This scheme is quite popular due to its giving better returns than other small savings schemes and bank FDs. At present, interest is being received at the rate of 7.6 percent per annum in Sukanya Samriddhi Yojana. Till now, in the Sukanya Samriddhi Yojana, the benefit of tax exemption under section 80C of the Income Tax Act was available only on the accounts of two daughters. There was no tax exemption in case of having a third daughter. But now the government has announced tax exemption on the third daughter’s account by changing the rules.

The advantage of the Sukanya Samriddhi Yojana account is that you can invest in it with very little money. You can also open an account by depositing a minimum of Rs 250 annually. In this, up to 1.5 lakh rupees can be deposited in a year. If the minimum deposit amount is not deposited in the year then the account becomes default. Even if the account is not active again, the amount deposited in the account continues to earn interest at the applicable rate till maturity.

Account can be closed even before maturity

According to a media report, under certain circumstances the account of Sukanya Samriddhi Yojana can be closed before maturity. But, there is a condition that the account can be closed only when it has been at least 5 years since it was opened. Under no circumstances can the SSY account be closed before 5 years.

Earlier the rule was that Sukanya Samriddhi Yojana could be closed on the death of the daughter or change of address. Now the government has changed the rules. Now even if the account holder has a serious illness, the account can be closed. The account can be closed before maturity even in the event of the death of the guardian.

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As per the Gratuity Act 1972, an employee becomes eligible to receive gratuity amount after completing five consecutive years of service in an organization.

The amount of gratuity is paid after the employees retire, resign or are fired.

As per Section 4 of the Gratuity Act, the condition of continuous service of five years is not applicable in the event of termination of service by reason of death or disablement.

In case of death of an employee, gratuity amount is paid to the nominee or legal heir.

As per Section 4 of the Gratuity Act, the condition of continuous service of five years is not applicable in the event of termination of service by reason of death or disablement.

In case of death of an employee, gratuity amount is paid to the nominee or legal heir.

The Gratuity Act 1972 applies to all organisations, including factories, mines, oil fields, plantations, ports, railways, motor transport undertakings, companies, shops and establishments employing more than 10 workers.

Time limit

As per the existing rules, the employee can apply within 30 days of the gratuity amount becoming due.

Also the employer cannot reject the application even if it is filed after 30 days.

The employer has to specify the amount payable and the date of payment within 15 days from the date of receipt of application for gratuity amount.

In case of rejection of the application, the employer has to give the reason for the rejection of the application for gratuity.

Calculation of Gratuity

The amount of gratuity earned by the employee depends on the tenure of service and the last drawn salary. It is calculated on the basis of basic pay and dearness allowance.

For the calculation of gratuity, every month is considered as 26 days for the organizations coming under the Gratuity Act 1972.

Gratuity is paid every 15 days for each completed year of service. In the last year of employment, if an employee works for more than six months, he will be rounded off to the next number.

For example, if an employee works for a total period of eight years or seven months, then it is considered as 9 years for gratuity calculation.

Formula for Calculation of Gratuity

Last drawn pay (Basic pay plus dearness allowance) * Number of completed years of service * 15/26

Employees of organizations not covered under the Gratuity Act are also eligible for payment of gratuity. In such cases, the total number of days in a month will be 30.

Tax exemption

All gratuity payments received by government employees are entitled to full exemption from income tax.

In case of private sector employees, income tax rules on gratuity are applicable on the basis of whether the employee is covered under the Gratuity Act, 1972 or not.

For private sector employees covered under the Gratuity Act, the income tax exemption applicable on gratuity received is the least of the following:

Maximum amount specified by the government, which is currently limited to 20 lakhs

Last drawn pay *15/26*Years of service

Actual gratuity received

For private sector employees not covered under the Payment of Gratuity Act, the income tax exemption limit is the minimum of the following:

Average salary of last 10 months (Basic + DA) x Number of years of employment x 1/2 10 lakh rupees gratuity actually received

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Let us tell you, tax exemption in India is classified on the basis of the type of income. Agricultural income, pension, allowances and other forms of income are not included. There is another possibility of deduction of tax at source.

Tax exemption is an arrangement that reduces taxable income. You may be excluded from paying taxes in full, at reduced rates, or entirely on a portion of your earnings. Rather than the absence of taxation in specific cases, tax exemption is a statutory exception to a general rule. Tax credits are given to encourage certain economic activities.

Significantly, a new tax structure was implemented in the Union Budget 2020-21. Taxpayers were given the option to choose between the previous system, which had separate deductions and exemptions, and the new regime, which included lower tax rates but no exemptions or deductions.

The change was aimed at simplifying the income tax law as well as providing substantial assistance to individual taxpayers.

When asked about the experience of the new tax regime, sources indicated that there is clear evidence that those who have completed their home and education loans are eager to move to the new tax regime as they have There is no exemption to claim.

According to sources, the reduction in taxes in the new system will make the new tax system more attractive.

In September 2019, a comparable tax structure was implemented for business taxpayers, with much lower rates and fewer exemptions.

The government announced a reduction in the base corporation tax rate from 30% to 22% for existing companies, and from 25% to 15% for new manufacturing enterprises formed after October 1, 2019 and starting operations before March 31, 2024. announced a reduction. Companies opting for these higher tax rates will have to forego all exemptions and incentives.

Under the new tax regime for individual taxpayers announced on February 1, 2020, people with annual income up to Rs 2,50,000 do not pay any tax.

The tax rate is 5 per cent for income between Rs 2,50,000 to Rs 5,00,000.

Also, those earning between Rs. 50000 and Rs. 7,50000 have to pay a tax rate of 10%; Those earning between Rs 7,50000 to Rs 10,000 are paid tax at the rate of 15%; Those earning between Rs.100000 to Rs.12,500,000 have to pay tax at the rate of 20%; Those earning between Rs.12,500,000 to Rs.1500000 have to pay a tax rate of 25%; And those earning more than Rs 1500000 have to pay 30% tax rate.

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