All kinds of speculations are being made about questions like what is going to be special in this budget, what is the government going to announce for which sector and which segment is going to get relief.

The biggest expectation from the budget for common people as well as special people is tax relief and the announcement of some special scheme or financial assistance by the government to deal with inflation. Sources have given some important information and told what the government can announce regarding tax in the upcoming budget 2025.

There may be a change in the tax regime?

Prakash Priyadarshi said that the preparations for the budget for the financial year 2026 are at their peak and the process of consultation with the industry has also been started. He quoted sources and said that the government can give a big news for the taxpayers in this budget.

Sources are telling that the government is exploring many such options in which special attention is being paid to how to increase domestic consumption. Many such options are also being discussed, one of which is to reduce the income tax for low-income groups and low-salary people.

Budget preparations for the financial year 2026 are at their peak and the process of consultation with the industry has also been started. He quoted sources as saying that the government can give a big news for the taxpayers in this budget. Sources are telling that the government is exploring many such options in which special attention is being paid to how to increase domestic consumption. Many such options are also being discussed, one of which is to reduce the income tax for low-income groups and low-salary people.

In this year’s budget, the government may consider the tax slab of Rs 3-7 lakh among the tax payers, especially under the new tax. He said, sources are telling that the income tax exemption limit, which is currently Rs 3 lakh in the new tax regime, should also be increased. The government has currently started discussions on this.

Let us tell you that there is still more than 1 month left for the presentation of the budget. Finance Minister Nirmala Sitharaman will present the budget in Parliament on Saturday, February 1, 2025 at 11 am.

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The post Budget 2025: Govt may Announce to Change Tax Slab for Employed and Salaried Taxpayers in New Tax Regime first appeared on Rightsofemployees.com.

But there are some incomes which have been kept out of the scope of income tax. In such a situation, if you have not filed ITR till now, then know about 5 such types of income which are considered non-taxable in India.

1- Income from agriculture

Under Section 10 (1) of Income Tax, income from agriculture is completely tax-free. This includes the production, processing and distribution of wheat, rice, pulses and fruits. Apart from this, if any of your properties is being used for agricultural purposes, then the rent received from it is also tax-free. Not only this, income from the purchase and sale of agricultural land is also non-taxable.

2- Gifts received from relatives

If your close relatives give you gifts, then they are not taxed. Husband-wife, brother-sister, brother or sister of husband/wife, brother or sister of mother/father i.e. aunt, maternal uncle, paternal uncle, grandparents, grandparents of husband/wife, son or daughter and husband or wife of brother/sister are included in the list of close relatives. If they give you gifts, then it does not come under the purview of tax. Apart from this, gifts received on the occasion of marriage are tax-free, no matter what their amount is. If any friend or acquaintance of yours gives you a gift of up to 50 thousand rupees, then it is tax-free, but if he gives you a gift of more than this, then it comes under the purview of tax.

3- Income from gratuity

The gratuity received by a government employee after his death or retirement is completely tax free. On the other hand, according to the rules of the Gratuity Payment Act 1972, private sector employees do not have to pay tax on an amount up to a maximum of Rs 20 lakh on retirement.

4- Scholarship

Many institutions provide scholarships to students to complete their studies. These scholarships are tax free. The amount received on voluntary retirement up to Rs 5 lakh is tax free.

5- Some pensions are also tax free

The winners of gallantry awards like Mahavir Chakra, Param Vir Chakra, Vir Chakra do not have to pay any tax on the pension received. The pension received by the family members of the Indian Armed Forces is also tax free.

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The post Non Taxable Income: There is no tax on these 5 types of income, note this before filing ITR first appeared on Rightsofemployees.com.

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

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

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

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

How can you save tax in the old tax regime? 

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

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

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

The post Old Tax Regime: No tax to be paid on income of Rs 10 lakh – Details here first appeared on Rightsofemployees.com.

The season of tax saving has arrived. People earning more have started struggling to save tax. The central government has given tax exemption on income up to Rs 7 lakh under the new tax regime, while annual income up to Rs 5 lakh has been exempted under the old tax regime. But if your annual income is more than these two limits then you may have to pay tax.

People have to pay tax on higher income as per the tax slab. Under the old tax regime, the Income Tax Rule says that no tax will have to be paid on annual income up to Rs 2.5 lakh. There is a provision of 5% tax on income of Rs 2.5-5 lakh. Whereas 20% tax is charged on annual income of Rs 5-10 lakh. There is a 30% tax slab on annual income of Rs 10 lakh and above.

Tax can be saved even on income of Rs 10.50 lakh

According to this, if your annual income is Rs 10 lakh then you will have to pay 30% tax. However, if you want, you will not have to pay even a single rupee tax. Not only this, even if your salary is Rs 10.50 lakh, you can save the entire amount of tax by investing and taking advantage of exemptions.

How can you save tax on income of Rs 10.50 lakh?

1. A rebate of up to Rs 50 thousand is available as standard deduction. In such a situation, tax will now be levied on Rs 10 lakh.

2. By investing in schemes like PPF, EPF, ELSS, NSC, you can save tax of Rs 1.5 lakh under Section 80C of Income Tax. Now if we subtract Rs 1.5 lakh from Rs 10 lakh, Rs 8.5 lakh will come under tax.

3. Similarly, if you separately invest up to Rs 50,000 annually in the National Pension System (NPS), then under Section 80CCD (1B), you get help in saving income tax of additional Rs 50 thousand. Now if we subtract Rs 50 thousand more, Rs 8 lakh will come under the tax net.

4. If a home loan is also taken, then tax saving of up to Rs 2 lakh can be done on its interest under Section 24B of Income Tax. If you subtract another Rs 2 lakh from Rs 8 lakh, the total tax income will be Rs 6 lakh.

5. By taking a medical policy under Section 80D of Income Tax, you can save tax up to Rs 25 thousand. Your name, your wife and children’s names should be there in this health insurance. Apart from this, if you buy health insurance in the name of your parents, you can get an extra discount of up to Rs 50,000. In this case, if we subtract 75 thousand from Rs 6 lakh, the total tax liability will be Rs 5.25 lakh.

6. If you donate to any organization, you can avail tax benefit of up to Rs 25,000. Under Section 80G of Income Tax, you can claim tax deduction up to Rs 25,000 on the amount given as donation.

After deducting Rs 25 thousand, your income will now come in the tax slab of Rs 5 lakh. According to Income Tax rules, no tax will have to be paid under the old tax regime on income up to Rs 5 lakh.

The post Income Tax Rule: Salary is more than 10 lakhs, still not even a single rupee of income tax will be charged, this is the fund first appeared on Rightsofemployees.com.

Income tax slabs have been made for this. At the same time, tax is collected according to the new tax regime and the old tax regime. However, now some people will also have to pay 30 per cent tax. Let’s know about it…

Tax slab

Individual taxpayers have to pay income tax on the basis of the slab system in which they fall. Individuals may fall in a different tax bracket on the basis of their income. As a result, higher income earners will have to pay more tax. The slab system has been implemented to keep the country’s tax system uniform.

Old tax system, whereas at present, for the financial year 2022-23, if someone files income tax under the old tax system and his age is less than 60 years, then he will have to file tax as mentioned below. According to this system, if someone files tax, then he will have to pay more than 30% tax on annual income of more than Rs 10 lakh.

Rs 2.5 lakh per annum income – No tax
Rs 2.5-5 lakh per annum income – 5 per cent tax
Rs 5-10 lakh per annum income – 20 per cent tax
Income above Rs 10 lakh per annum – 30 per cent income tax

In the new tax system , the income tax slabs are different in the new tax system. If someone files income tax return according to the new tax regime, then he will have to pay tax on different incomes according to different slabs. In such a situation, if someone’s income is more than Rs 15 lakh under this system, then they will have to pay 30 percent tax.

Rs 3 lakh annual income – No tax
Rs 3-6 lakh annual income – 5% tax
Rs 6-9 lakh annual income – 10% tax
Rs 9-12 lakh annual income – 15% tax
Rs 12-15 lakh annual income – 20% tax
Income above Rs 15 lakh per annum – 30% tax

The post Income Tax: Big news! Government has decided, these people will have to pay huge income tax of 30% first appeared on Rightsofemployees.com.

Only 23 days after the presentation of the budget, Russia attacked Ukraine and the war that started between the two countries is still going on. But this war put the whole world in trouble. There was a huge jump in the prices of all other commodities including crude oil. The prices of food and drink skyrocketed, especially wheat and edible oil. And its effect was also seen in India.

In April 2022, the retail inflation rate reached 7.79 percent. And after that remained above 7 percent for several months.  From petrol diesel to cooking gas and PNG-CNG became expensive. After the rise in the inflation rate, the Reserve Bank of India started making loans expensive, then the EMI of the people became expensive. Firstly, the common man was troubled by inflation, on top of that the banks made the EMI expensive 5-6 times. Due to which the budget of every household has deteriorated.

In such a situation, the eyes of the taxpayers are on the fifth budget of the second term of the Modi government. The question arises whether the Modi government will give relief to the taxpayers by reducing the tax rate.

There is no benefit of tax rebate on income above 5 lakhs.

During the meeting with the stakeholders regarding the budget, the stakeholders have demanded the Finance Minister to reduce the tax burden on common taxpayers and rationalize it. At present, no tax has to be paid on income up to Rs 2.50 lakh. But 5% tax has to be paid on income from Rs 2.50 to Rs 5 lakh.

Those whose income is less than Rs 5 lakh, the government gives tax rebate of up to Rs 12,500 under rule 87A. That is, those with taxable income less than Rs 5 lakh do not have to pay any tax. But if the taxable income of a taxpayer is more than Rs 5 lakh and less than Rs 10 lakh, then he has to pay 20% tax directly. Such people do not even get the benefit of Rs 12,500 tax rebate under 87A. And 20 percent tax has to be paid on income above 5 lakhs and 30 percent tax on income above 10 lakhs.

Relief to corporate, burden on taxpayers!

For example, if a taxpayer’s taxable income is Rs 7 lakh, then he has to pay tax of Rs 52,500, and if someone’s taxable income is Rs 12 lakh, he has to pay tax of Rs 1,72,500. Actually taxpayers have to pay 20% tax directly after 5%. There is no middle tax slab of 10 per cent. That’s why there is a demand to rationalize the tax slabs. The government has reduced the corporate rates in 2019 but has not given any relief to the common taxpayers. While taxpayers have had to face inflation since the Corona period in the last few years.

Chances of reduction in tax slab rate!

In such a situation, taxpayers want the government to change the tax slab rate. It is not at all fair to collect 20% income tax directly after 5%. Tax experts are demanding to increase the income tax exemption limit from Rs 2.50 lakh to Rs 5 lakh and to impose 10% tax on income between Rs 5 to 10 lakh. Anyway, this is the last full budget of the Modi government before the Lok Sabha elections, in such a way taxpayers hope that the Modi government will not disappoint them.

The post Union Budget 2023: Tax rate is 20% after 5%, preparation for major changes in tax slab to give relief to taxpayers! first appeared on Rightsofemployees.com.

Tax is necessary for everyone from middle class to upper class, if someone’s income is high then he will have to pay more tax and if income is less then he will have to pay less tax. In which Finance Minister Nirmala Sitharaman can make a big change this time. 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 slab this time.

The government will present the budget (Budget 2023) on February 1 in 2023. Means the budget is going to come after two days. Let us tell you what is the government’s plan regarding tax this time-

Tax limit may increase

At present, no income tax is levied on income up to Rs 5 lakh, but Finance Minister Nirmala Sitharaman is planning to increase this limit in this budget.

Finance Minister Sitharaman had asked for suggestions

According to the information received from sources, Finance Minister Nirmala Sitharaman had asked for suggestions regarding tax, how much scope is there for improvement in the new tax regime. There is also a discussion about this, so it is believed that the government can make changes in both the new and old tax system. Right now there is no benefit of any kind in the new tax regime.

The last major change was in 2014.

Let us tell you that before this, the income tax limit was changed for the last time in the year 2014. This time again it is expected that the government can give great news before the Lok Sabha elections. It is expected that the government is considering increasing the personal tax exemption limit.

Elections will be held after 13 months

Modi government will present the full budget of its second term in 2023. Next year, after about 13 months of the budget, the general elections will be held, so it is believed that this time the government is preparing to give a big relief to the general public.

The post Income Tax Slab Change: Income tax payers got lottery! Now they will not have to pay tax, Announcement of the Finance Minister! first appeared on Rightsofemployees.com.

Everyone’s eye remains on the tax slab in the budget. At present there are two slabs of income tax in the country. There are different provisions in both of these. If someone’s salary is 50 thousand, then how much tax will be deducted on the new or old tax slab, let us tell you about this.

Two slabs of tax

Talk about the change in tax slabs, in the last few budget sessions people have felt disappointed. At present there are two tax systems in the country. The first system is called Old Tax Slab. For the purpose of giving relief to the taxpayers, in the year 2020, the government had brought a new tax slab, so that there would be ease in ITR filing. For this a new system was also started. However, despite bringing the new slab, the government had retained the old tax slab.

How much tax from old system on 50 thousand salary

If the monthly salary is 50 thousand rupees and there is no other source of income then the annual income will be 6 lakh rupees. If you choose the old system, then a deduction of up to Rs 1.5 lakh is available under Section 80C of Income Tax (IT Act 80C). Employed people also get the benefit of standard deduction of Rs 50,000.

In the old system, there is no tax on income up to 2.5 lakhs. 5% tax has to be paid on income between Rs 2.5 lakh to Rs 5 lakh. But after the rebate of Rs 12,500 it becomes zero. That is, according to this slab, no tax will have to be paid on income up to Rs 5 lakh.

5,00,000(Income) – 5,00,000(Net Tax Deduction)= 0 Tax

How will tax be saved on an income of 6 lakhs in the new tax system?

In the new tax system, income up to Rs 2.50 lakh is tax free, but after that Rs 2.5 lakh will be taxed at 5%, which works out to Rs 12,500. A tax of Rs 24,400 is levied on salary up to Rs 6 lakh. If the income is more than Rs 5 lakh to Rs 1 lakh, then that amount of Rs 1 lakh will come in the bracket of 10%. A tax of Rs 10,000 will be made on this. Also, a cess of 4% will be levied on the calculated tax. If the tax is Rs 12,500, then the cess will be Rs 900.

How will the income of 6 lakh be tax free?

Under 80C, a rebate of up to Rs 1.5 lakh is available. For this you can invest in NSC, ELSS, PPF and EPF. Apart from this, if you invest Rs 50,000 in the National Pension System (NPS), then you will get an additional deduction of Rs 50,000 under 80CCD (1B). Home loan borrowers can save Rs 2 lakh separately.

Income 6,00,000-1,50,000 (PPF, EPF)= 4,50,000
4,50,000-50,000 (NPS)= 4,00,000
4,00,000-2,00,000 (Home Loan) = 2,00,000 (Tax Free)

The post Income Tax Slab: Salary is 50 thousand rupees, new or old, from which tax slab will tax be saved? understand full math first appeared on Rightsofemployees.com.

Finance Minister Nirmala Sitharaman is going to give a big gift to the taxpayers in the budget this time. At present the limit is Rs 2.5 lakhs, let us tell you that at present no tax has to be paid on annual income up to Rs 2.5 lakhs, the government is planning to increase the limit to Rs 5 lakhs. That is, if your annual income is also Rs 5 lakh, then you will not have to pay any tax.

The last change took place in 2014.

This will be the last full budget of the second term of the central government, which will be presented by the Finance Minister. After this, elections are to be held in the year 2024, so it is believed that the government can give big relief to the middle class this year. Before this, the last change in the limit of personal tax exemption was made in the year 2014.

Arun Jaitley had increased the limit

Earlier, Finance Minister Arun Jaitley had announced to increase this limit from Rs 2 lakh to Rs 2.5 lakh, but this time it is expected that this limit can be increased to Rs 5 lakh.

According to media reports, there will be a change in the 2-year-old tax system
, the government is considering increasing the limit of tax exemption in the 2-year-old tax system. This will give relief to taxpayers and they will have more money for investment.

The post Big relief for the tax payers! Government is making big changes in income tax slab, income up to 5 lakh will be tax free! first appeared on Rightsofemployees.com.

By filing ITR, you convey your total income and tax related information to the Income Tax Office. A certificate is received when the income tax return is filed. This is an official proof, which tells that you are a responsible citizen. Through this certificate, you can take many big benefits in future. Know here the benefits of filing ITR.

Easy to get loan

The biggest advantage of filing ITR is that you get the loan easily. In today’s time, every person needs a loan for land, business, house or vehicle etc. Meanwhile, the financial institution giving the loan asks for proof of income from you. If you are employed then you can give proof by giving salary slip, but if you are not employed, they can submit copy of income tax return of last 2 or 3 years. With this, they get loans easily.

ITR is necessary for Visa

America and some developed western countries ask for a copy of income tax return in the process of issuing visa. It is checked through ITR that what is the financial status of the person who is coming or wants to come to their country. That is, it is necessary to file ITR for visa also. For those who do not earn themselves, a copy of the ITR of their parents or guardian can be given.

Can take contract from government department

Many people do business by taking contracts from government departments. If you also want to take a contract from any department, then it is very important for you to file ITR. ITR of last 5 years is necessary for taking contract in any government department.

For a large sum insurance policy

When you buy any insurance policy of Rs 50 lakh, Rs 1 crore or more, then you need to show the ITR receipt for it. In LIC, especially on taking a term policy of 50 lakhs or more, you will be asked for ITR documents. From this it is decided whether you are eligible to get such a huge amount of insurance or not.

Helpful in compensation for accidental death

In case of third party insurance, in case of death of a person in an accident, the amount of insurance to help his family is determined according to the income of the deceased. During the court proceedings, the insurance company asks the family for proof of income of the deceased. A copy of ITR proves helpful in this situation. Due to this, the family of the deceased gets the insurance claim easily.

The post Benefits of Filing ITR: Even if you do not come in the tax slab, you must file ITR, know its 5 big benefits first appeared on Rightsofemployees.com.

According to the rules of the Income Tax Department, no tax has to be paid on income up to 2.5 lakhs annually. There is a provision of 5 percent tax on income of 2.5 to five lakh rupees, while 20 percent tax has to be paid on annual income of 5-10 lakh rupees. At the same time, there is a 30 percent tax slab on annual income of 10 lakhs and above. If your income is Rs 10 lakh then you do not have to pay tax even a single rupee. Today we will tell you about such a way, by which you can save the entire amount of tax by taking advantage of investment and income tax exemption. For this, you have to balance between Savings and Expenses.

Income tax experts explain this through an example, they say that suppose you earn Rs 10 lakh annually, then in this case you get a standard deduction of Rs 50,000. This brings down your taxable income to Rs 9.5 lakh. Then, in addition to this, you can get up to Rs 1.50 lakh rebate by investing in tax saving schemes (life insurance, sukanya samriddhi yojana, children’s fees etc.) under 80C. By doing this your taxable income comes down to Rs 8 lakh.

According to tax experts, to further reduce this, you can take advantage of NPS. Through this, the taxable income can be reduced by another 50 thousand rupees. Apart from this, you can get a discount of 25 thousand rupees through your health insurance and 25 thousand rupees through your parents’ health insurance. With this your taxable income will now be Rs 7 lakh. Then, if you have taken a home loan, you can avail interest deduction of up to Rs 2 lakh through it. Now your taxable income will be Rs 5 lakh.

According to tax experts, on income up to Rs 5 lakh, the government gives a tax exemption of Rs 12,500 under section 87 (A). This will reduce your taxable income to less than Rs 5 lakh and once that happens you will not have to pay any tax. This income is eligible for full exemption under section 87A.

The post Income Tax Rules Changed: Now even 10 lakh income will not be taxed, know how first appeared on Rightsofemployees.com.

If you have not filed your income tax return yet, then you have only 10 more days to do so. This time too, if you fail to file ITR, you will have to pay penalty and interest on the amount of penalty. The last date for filing Income Tax Return (ITR) for the assessment year 2022-’23 (Financial Year 2021-’22) is 31st July.

This last date deadline is for individual taxpayers who do not need to get their accounts audited. There is also a penalty for missing the deadline and you also have to pay interest for late filing of return.

How Much Late Fee

If you miss the deadline of July 31, then you can file late ITR till December 31, but you will have to pay late filing fee. For income above Rs 5 lakh, the late fee is Rs 5,000, while others have to pay Rs 1,000.

Late filing fee will also be applicable to those taxpayers whose income may be less than the tax exemption limit of Rs 2.5 lakh, but they are required to file ITR. This includes those taxpayers who have foreign assets or have earned foreign income or have paid more than ₹ 1 lakh in electricity bill during the financial year. Have deposited more than ₹1 crore in one or more bank accounts and paid more than ₹2 lakh on foreign travel for self or family.

If you have outstanding taxes after the July 31 deadline, you will have to pay a monthly simple interest of 1% on the outstanding amount . On how and how much interest is charged, tax experts say that interest starts counting from the beginning of the month. Understand this with an example that suppose you paid the outstanding tax on the fifth day of the month of August, then you will have to pay 1% interest for the whole month.

With this, suppose you have paid late tax. Now the tax department has calculated your ITR. The department felt that you have not done the calculations correctly and you are facing more tax liability. In such a situation, you will have to pay interest on that additional amount with retrospective effect.

The post ITR Late File Penalty: If ITR is not filed by July 31, then penalty will be imposed according to the tax slab first appeared on Rightsofemployees.com.