Friday, July 19, 2024

6 New Income Tax Rules for 2024-25 to know if you’re salaried

New Income tax rules for FY 2024-25: Apr 1, 2024 is when the new financial year starts. So, for better financial-planning and tax-saving investments, you must know the correct income tax rules. Here is the correct compilation of new income tax rules for financial year 2024-25 as announced by the Ministry of Finance.

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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%.

Jyoti Sehrawat
Jyoti Sehrawat
Jyoti Sehrawat is a passionate writer and an English language educator who has been writing professionally for over 14 years. Her journey as a writer began as a personal endeavor, a way to express her thoughts, feelings, and imagination. Over the years, it evolved into a lifelong pursuit, a calling that she’s truly passionate about. When she’s not writing, she loves to paint, explore new DIYs and bake French-vanilla muffins!

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