The new financial year 2024-25 begins today, i.e on 1st of April 2024. It is when most of the new ( changed) income tax rules come into effect. As per the Ministry Of Finance, there will be no change in the Income Tax rules for financial year 2024-25.
However, lots of false information has been spreading on various social media platforms regarding the new income tax rules. So, here is everything you need to know about the new income tax rules applicable from Apr 1, 2024:
New Income Tax Rules For Financial Year 2024-24:
Decide between Old and New Tax Regimes
When it comes to TDS (tax deducted at source) on salary, choose between the old and new tax regime. Inform your employer about your preferred tax regime well in time, because if you don’t, tax from your salaried income will be deducted as per the new tax regime, which is the default option.
Basic Exemption Limit
There’s a difference in the basic exemption limit between the old and new tax regime. Under the new tax regime, income up to Rs 3 lakh is tax-free for everyone. But, in the old tax regime, the basic exemption limit varies as per the individual’s age. For those under 60 years, it’s Rs 2.5 lakh; for senior citizens aged 60 to 80, it’s Rs 3 lakh, and for super senior citizens aged 80 and above, it’s Rs 5 lakh.
Zero Tax Payable
There is tax rebate for resident individuals in both tax regimes Under Section 87A. There will be zero tax payable if the net taxable income is not exceeding the given limit. There is a higher tax rebate in the new tax regime as compared to the old one.
Deductions and Exemptions
There are deductions and exemptions in both tax regimes, with more rebate in the old one. The old tax regime offers deductions under Section 80C, 80D, and 80CCD (1B), as well as the HRA and LTA exemptions. But, the new regime offers lesser deductions, such as the standard deductions and NPS contributions.
Timely ITR filing
If you opt for the old tax regime while filing your ITR, the deadline will be 31 July. Please note that if you file your ITR post 31 July, the new tax regime will be applicable as it is the default option.
Reduced Surcharge
Those who are high-income earners, they can opt for the new tax regime as it offers a lower surcharge rate of 25%, which was earlier 37% for incomes exceeding Rs 5 crore. However, if you opt for the old tax regime, you’ll still face a surcharge of 37%.
Very informative article 🙏
Thank you! More information coming on this!
This is super helpful! Thanks!
Thank you! Stay tuned for more information!
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Very helpful article.
Thank you so much! Stay tuned for more useful articles of this kind.
This is very informative article
Thank you so much! Stay tuned for more useful articles of this kind.
Nice information for tax saving..
Educative article!
Thank you. Hope this helps!
It would be easier to decide between old and new tax regime. Thanks for bringing out that clearly.
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An excellent informative article regarding Tax @ wishing you all the best and extremely waiting for new articles 🙏
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