Income Tax Return: While presenting the Union Budget on February 1, Finance Minister Nirmala Sitharaman announced changes in personal income tax.
Nirmala Sitharaman had announced that the new taxation system imposed by the government would become default from the financial year 2023-24. Under the new system, tax exemption can be obtained on an annual income of Rs 7 lakh. Taxpayers with annual income up to Rs 7 lakh will save Rs 33,800 in taxes after increasing the exemption under the new income tax regime through the Finance Minister.
Income tax
There are some advantages in the new tax system but there is no exemption on any kind of investment in it. Although standard deduction has definitely been added in the new tax regime. On the other hand, if you want investment or other exemption, then you will have to file tax according to the old tax system. There are many types of exemptions available in the old tax system. Today we are going to tell you about… Deductions available under the old tax regime
- Standard Deduction: Rs.50000 for salaried individuals.
2.Section 80CCD(1B): Additional deduction up to Rs 50,000 on deposits in NPS account.
3.Section 80TTA: This section provides a deduction of a maximum of Rs 10,000 on interest income from savings account of a bank, co-operative society or post office for an individual or HUF.
4.Section 80D: It allows deduction on health insurance premium.
- Section 80G: Donations made to eligible trusts and charitable institutions are eligible for deduction.
- Section 80C: Invest in EPF & PPF, ELSS, Life Insurance Premium, Home Loan Repayment, SSY, NSC & SCSS and get exemption.
Taxpayers should note that if you are an employee and fail to choose between the new-old tax regime, TDS will be deducted at the new tax regime rates. The matter has become clear from a circular of the Central Board of Direct Taxes.
It states, ‘If the notice is not given by the employee, it shall be deemed that the employee continues to be in the default tax regime and has not exercised the option to opt out of the new tax regime. Shall deduct tax at source on income under section 192 of the Act, at the rates provided under sub-section (1A) of section 115BAC."
Tax exemptions: Great news! Now these 6 important exemptions will be available on filing ITR from old tax regime
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