PERSONAL FINANCE
The latest income tax regime in India aims to increase its adoption among taxpayers, as the central government continues to introduce proposals to make it more appealing.
Did you know that the Indian government has introduced a new tax system that came into effect from the financial year 2020-21? The government wants more taxpayers to adopt this new system, so they've been making efforts to simplify it. In fact, they proposed some changes in the latest budget to make it more attractive.
But, understandably, there might still be some doubts and questions in your mind regarding the new tax system. So, let's clear up some of your queries.
Firstly, let's talk about the slabs and rates of income tax under the new regime. After the changes made in this year's budget, there are now a total of six slabs. For instance, if your annual income is up to three lakh rupees, then it's tax-free. But if your income is between Rs 3 lakh and Rs 6 lakh, then you'll be taxed at 5%. And the tax rates increase with increasing income, with those earning over Rs 15 lakh having to pay 30% tax.
Secondly, what's the basic exemption limit under the new tax regime? Earlier, only income up to Rs 2.50 lakh was tax-free, but now it has been increased to Rs 3 lakh. So, if you're earning up to three lakh rupees every year, then there won't be any tax liability on you.
Thirdly, what about the surcharge amount under the new tax regime? The government has reduced it to 25% for those earning more than Rs 2 crore. Previously, it was imposed on people whose annual income was more than five crore rupees, and they had to pay a 37% surcharge.
Now, you might be wondering if the new tax regime is mandatory. Well, it's not. The government intends to have only one tax system in the future, but for now, you can choose between the new and the old tax system.
If you default in the new tax regime, it'll be assumed that you've opted for it. So, your employer will deduct tax according to the new system's slab and rate if you don't choose any option. But don't worry, you can still choose the option while filing the return.
Finally, let's talk about the reliefs available under the new tax regime. Tax relief is given under section 87A of the Income Tax Act, and from April 01, 2023, taxpayers with taxable income up to Rs 7 lakh will get a relief of Rs 25 thousand. Meanwhile, under the old tax regime, taxpayers with taxable income up to Rs 5 lakh will get a relief of Rs 12,500.
If you have more questions regarding the new tax regime, you can visit the official website of the Income Tax Department. They have a helpful FAQ section that covers all topics related to income tax, including the new tax system and the old tax system.
DNA TV Show: Baba Bageshwar calls for Hindu unity on Social Media
Emerging Teams Asia Cup 2024: When and where to watch Sri Lanka A vs Afghanistan A final match?
Telugu actor NT Ramaswamy gets slapped by woman during screening of his film Love Reddy; here’s why
What's Baby Ariha Shah issue between India and Germany, know about 3YO kid
Gujarat: 10 hotels in Rajkot receive bomb threats, police launch investigation
Glenn Maxwell reveals how Virat Kohli saved his career after all-rounder's horror IPL 2020
‘Naa shakal naa surat…’: Veteran actor says Priyanka Chopra refused to kiss him, got upset when he…
Dhanteras 2024: 5 inauspicious things to avoid buying on Dhantrayodashi
Maharashtra Assembly polls: BJP releases second list of 22 candidates
Rama Ekadashi 2024: Know the date, shubh muhurat, rituals and significance
How India can still qualify for WTC final despite losing home series to New Zealand?
EAM Jaishankar praises military, diplomacy for India-China patrolling breakthrough along LAC
Isha Ambani stuns in modern Banarasi saree gown at Fashion Trust Arabia Gala
'Oxford failed me': Indian student claims racial discrimination after removal from...
Gautam Adani faces huge loss after Rs 6189 crore project faces halt in Kenya due to...
Maharashtra assembly polls: Congress makes SHOCKING claim, says two MLAs offered crores to...
Vidya Balan breaks up silence on REJECTING Bhool Bhulaiya 2: 'I told Anees ji that...'
Govt extends ITR filing deadline for corporates, check new date here
Meet woman, from remote Odisha village, who cracked UPSC exam by YouTube videos, secured AIR...
Dhanteras 2024: Gold to silver, 5 auspicious things you should buy for good luck
When Madhuri Dixit met with life-threatening accident on Diwali, her body caught fire, then...
Viral artwork of banana duct-taped could be auctioned for over ₹12 crore, but here's twist
The Essence of Leadership: Insights from Ankur Saini
Mamata Banerjee warns of communal riots and explosion ahead of Diwali, heightens security in Kolkata
Diljit Dosanjh, Coldplay concerts illegal ticket sales: ED conducts raids in 5 states, finds...
Mukesh Ambani loses over Rs 180000000000 in just 1 day, here's why
Do Patti movie review: Kajol is a misfit in this convoluted Kriti Sanon drama on Netflix
'Despicable, yet entirely predictable': India slams Pakistan at UN for raising Kashmir issue
Cyclone Dana: Two more deaths reported in West Bengal, toll rises to 4, no casualties in Odisha
BruntWork shares takeaways from Mayer Brown’s 16th Annual Outsourcing Conference
Vaishno Devi Yatra: All you need to know about helicopter booking
Watch: Vidya Balan falls during her live performance with Madhuri Dixit, handles it with grace
Escalation looms as Israel strikes Tehran, raising fears of full-scale conflict
From Syria to Tehran: F-35 Fighters spearhead Israeli offensive
Meet IIT-JEE topper with AIR 1, scored 352 marks in JEE Advanced, decided to drop out of IIT due to…
After Delhi, odd-even scheme to be implemented in THIS state from November 5 to control...
Jharkhand Assembly Election: Is MS Dhoni entering politics? Poll body makes THIS key announcement
8th Pay Commission update: Government employees likely to get clarity on next pay commission by...
Sara Ali Khan is 'muhfat', was terrified of her in school, says Ananya Panday
Delhi's AQI hits 'poor' as air quality worsens amid pollution crisis, may turn severe from...
US house resolution introduced to formally recognise, commemorate Sikh genocide of 1984
Israel launches strikes on military targets in Iran to retaliate for a missile attack