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New regime tax slab. Step 1: Go to the e-Filing portal homepage.


New regime tax slab Here is a breakup of the revised income tax slabs for FY 2024-25 under the new regime: Sep 22, 2024 · Tax slabs for AY 2024-25 and 2025-26 under the new regime vary, with tax rates starting at 5% for incomes above ₹3,00,000. Surcharge Rates in New Tax Regime. Taxpayers can now benefit from revised tax slabs, along with an increased standard deduction and an enhanced family pension deduction. The basic exemption limit under the new income tax regime has been The new slab rate for the Fy 2023-24 is as follows Standard deduction under the New Tax regime for individuals with income up to Rs. If the taxpayer does not want to claim any exemptions new simplified tax regime is applicable. Under the new system, citizens with a yearly income of around ₹3 lakhs do not have to pay taxes. However, the eligible taxpayers have the option to opt out of new tax regime and choose to be taxed under old tax regime. Any individual paying taxes without claiming any tax exemption can benefit from new tax slab rates. Jul 19, 2020 · Budget 2020 introduced a new personal income tax regime for individual taxpayers with lower tax rates but more tax slabs. Because of this, the new tax regime did not have many takers. 3,00,000: NIL; Rs. 3 lakh change in tax structure: number of slabs reduced to five salaried class and pensioners to gain on extension of standard deduction benefit to the new tax regime maximum tax rate reduced to Jul 23, 2024 · Income Tax Slabs 2024-25 New vs Old Regime: The basic difference between the old and new income tax regime is that the former allows for major exemptions and deductions such as Section 80C About the New Tax Regime. Apr 18, 2024 · New vs old tax regime: Many taxpayers find it difficult to ascertain which tax regime makes them pay lower tax in a financial year. Know what are the new income tax slabs under the new tax regime from FY 2023-24 and how they are different from existing ones. This means that you will pay taxes based on the same slabs if you are under 60, a senior citizen (60-80), or a super senior citizen (above 80). Rs 3 to 6 lakh – 5% tax. Slide-2- 87A rebate for New regime. The new tax regime is introduced by the central government via Finance Act, 2020, whereby concessional tax rates are introduced which is explained in the later part of the article. 17% from the FY 2019-20 (AY 2020-21) onwards if such domestic companies adhere to certain conditions specified. The highest tax rate in India is 42. Choosing the right one can maximise your savings. 6). Jan 6, 2025 · The Budget 2024 introduced significant changes to the tax slabs under the New Tax Regime, which will be applicable for FY 2024-25 (AY 2025-26). Apr 23, 2024 · The Old Tax Regime rates have also been increased to incentivise people to switch over to the New Tax Regime. 5 lakh in the new tax regime slabs. What Is the New Income Tax Slab for 2023-24? The new tax regime was introduced in 2020, aiming to simplify the tax structure. The new tax slabs under the new income tax regime will be effective from April 1, 2024. 3,00,000 – NIL landscape of India. new tax regime. 5 lakh and ₹5 lakh, 20% on income between ₹5 lakh and ₹10 lakh, and 30% on income above ₹10 lakh. The Finance Minister gave taxpayers an option to choose between the new regime and the old one, which, in fact, made the whole process seem complex. Dec 19, 2024 · The Budget 2024 has made significant changes in tax slabs under the New Tax Regime, which will apply for FY 2024-25 (AY 2025-26). is mulling to sunset the Old Tax Regime to strengthen the new tax regime and to reduce the compliance burden on taxpayers to plan and manage. Apr 19, 2023 · Even 2 years post the introduction of the New tax regime under section 115BAC, the majority of taxpayers filed their ITR under the old tax regime. Further, it is also important to note that from the FY 2023-24, the new tax Apr 14, 2023 · A wide range of reliefs have been introduced to the new tax regime vide Finance Act 2023 to make it more attractive and shift the direction towards this regime. The simple answer to that is the amount of deductions claimed by you in the old tax regime. For individuals (resident or non-resident) under 60 years of age at any time during the previous year, the following tax rates Jan 4, 2025 · Income Tax Slab: The Union Budget 2024 brought significant updates to the income tax framework, offering substantial relief to taxpayers under the new tax regime. However, those who opt for the new regime cannot claim several exemptions and deductions, such as HRA, LTA, 80C, 80D, and more. The new simplified tax regime with a lower tax rate is given below. Oct 12, 2024 · Income Tax Slabs for FY 2023-24 (AY 2024-25) The new Income Tax Slab is allowed in the Budget 2023. 2. 15 lakh will be Rs. Rental Income Taxation: The Complete Picture 🏠 Dec 23, 2024 · As on 3rd Mar 2022, govt. In India, the income tax is levied on individuals according to a slab system, wherein distinct tax rates are allocated to various Income brackets. The standard deduction, which reduces the taxable income, has been increased from Rs. The finance minister Nirmala Sitharaman has made changes in the income tax slabs under the new tax regime in Budget 2024. Sep 25, 2024 · The tax slabs and rates are the same for all individuals and HUFs under the new regime. This tool not only helps you understand your tax obligations but also simplifies the process of comparing both regimes. Family pensioners can now claim a standard deduction of Rs 15,000 under the new tax regime. Each regime has different tax slabs, rules and benefits. Feb 2, 2023 · Earlier in January, Sitharaman had responded to a claim in the book Reform Nation, authored by Observer Research Foundation Vice President Gautam Chikermane, that the new and voluntary income tax regime had removed the simplicity of the old one, which had just three tax slabs of 10 per cent, 20 per cent, and 30 per cent. Income Tax Slab Under the Old Tax Regime To minimise your taxable income, you could claim tax exemptions on HRA and LTA, as well as deductions under other sections, such as Section 80C, 80D, and 80TTA under the old tax Jun 25, 2024 · A s a tax-paying citizen in India, you might be already aware of the revision to income tax slabs in India every year. Budget 2024 Updates. The following benefits have been extended to the taxpayers who opt for the new tax regime: In Budget 2024, the tax slabs under the new regime have been revised. e Individuals & HUF upto 60 years of age, Senior citizens above 60 years upto 80 years, and Super senior citizens above 80 years. Jan 7, 2025 · A comparative analysis of income tax calculation for FY 2024-25(AY 2025-26) under the old tax regime slab and the new income tax slabs introduced in Budget 2020 can be understood by comparing taxable income under both scenarios. If assessee wants to opt out of new tax regime, they can furnish Form-10-IEA on or before the due date u/s 139(1) for furnishing the return of income. 12,500 for incomes up to Rs. As on 1st Feb 2023, part of Budget 2023, govt. 6 Budget 2023 introduced New Tax Slabs 2023-24 for new tax regime which is reduced tax slab rates. Read More Jul 25, 2024 · Additionally, for individuals earning over Rs. Sitharaman said income of up to ₹ 3 lakh will continue to be exempted from Jul 4, 2024 · Note: If tax is paid in the new tax regime surcharge would remain the same, but the income tax slab will change, which is mentioned above. However, opting for this regime disqualifies taxpayers from several deductions, including house rent allowance (HRA), leave travel concession (LTC), and deductions under Chapter VIA like Section 80C and 80D. Jan 4, 2025 · Five things in the new tax regime that taxpayers must know for filing ITR in 2025 1) Income tax slab rates. 6. The tax rate for income between ₹3 lakh and ₹7 lakh has been reduced from 10% to 5%. 87 lakh calculated as per new tax regime rates before budget 2023. However, from the Assessment Year 2024-25 onwards, this regime will become the default for both individuals and HUFs. Let’s explore the income tax slabs for FY 2024-25 under both regimes, the key changes, and their impacts. Under the new tax regime, only limited tax deductions are available for taxpayers. 1 day ago · Income Tax Slabs for AY 2025-26. In the 2023 budget, the government introduced updates to the new tax regime. They cannot choose the tax rates in the new regime once she has exercised their choice to return to the previous tax regime. This meant that if an individual does not specify the tax regime for TDS from salary or while filing income tax return, then income tax liability will be calculated on the basis of the new tax regime income tax slabs. (Assessment Year 2025-26). 50,000 to Rs. 74%. Nov 7, 2024 · Section 115BAA states that domestic companies have the option to pay tax at a rate of 22% plus sc of 10% and cess of 4%. Pl explain /reply . Aug 21, 2024 · New Tax Regime (FY 2024-25) The new tax regime, introduced in the Budget 2020, aims to simplify the tax structure by offering lower tax rates while eliminating most deductions and exemptions. New Tax Slab The new tax regime rate structure has been revised Dec 29, 2023 · 3. Sep 10, 2024 · Similarly, an individual with INR 15 lakh annual income will have to pay a tax of INR 1. Here are the income tax slabs under new tax regime. Step 1: Go to the e-Filing portal homepage. Latest Budget brought in many surprising changes to the new tax regime. Jul 24, 2024 · Above tax slabs under the old tax regime are applicable to those individuals aged less than 60 years. New Tax Regime will be default tax regime from FY 2023-24. However if new tax slab regime is opted at the begninng of the year, it cannot be changed anytime during the year for TDS purpose, however the option can be changed at the time of filing of Income-tax return. However, individuals still have the flexibility to opt for the old tax regime The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax regime. has given clear direction to eventually sunset the old tax regime and has made "new tax regime" a default when filing taxes in India. Example: An individual with a pre-deduction income of Rs 12 lakh but investments below Rs 1. 5. 52,400. This would result in the reduction of the maximum tax rate to 39%. Tax Slabs under the new tax regime Apr 16, 2021 · Employees can change the option of selecting the tax regime every year. Aug 28, 2024 · For the Financial Year 2024-25, the Budget has introduced revisions to the tax slabs under the New Tax Regime, offering taxpayers an opportunity to reduce their tax liability by up to INR 17,500. Moreover Aug 6, 2024 · Tax Saving Deductions and Exemptions Under the New Tax Regime. Here are the new vs old tax regime slab- new tax regime. Read on to know the latest announcements made by the finance minister in Budget 2024 today. income level In this article, we will learn about the tax slabs applicable to the senior and super senior citizens under the old and the new tax regime. Jun 5, 2024 · Current Income tax slabs: Here are the income tax slabs for current financial year 2024-25 (assessment year 2025-26). Jul 23, 2024 · New Income Tax Slab: Latest income tax slabs in new tax regime in Budget 2024: The income tax slabs and rates have been changed by the finance minister in the new tax regime today. The Effective Tax rate being 25. The changes announced in the income tax slabs under the new tax regime is applicable for incomes earned in current the FY 2023-24, starting from April 1, 2023. Feb 1, 2023 · Income Tax slab 2023-2024 highlights: New income tax regime has seen a major revamp in the income tax slab rates for 2023-24. Marginal Relief for Firms/ LLP/Local Authorities Where the total income is more than Rs. Learn about the options available to taxpayers and make informed decisions to optimize tax efficiency. (Select the quick Nov 11, 2024 · *Surcharge and education cess will be applicable in addition to the slab rates. Jul 23, 2024 · As a result of these changes, a salaried employee in the new tax regime stands to save up to Rs 17,500/-in income tax. Key points under Old tax regime: New tax regime is the default tax regime for FY 2023-24 and onwards, to file return under old regime an additional form called Form 10 – IEA to be filed provided individual is having business income. Dec 11, 2024 · For the Assessment Year (AY) 2025-26, individuals can opt for either the old tax regime or the new tax regime, which comes with new slab rates and a high standard deduction. As per the old tax regime, the applicable rebate limit is Rs. Rs 12 lakh to Rs 15 lakh – 20% tax Feb 1, 2023 · The finance minister also rationalised tax slabs under the new income tax regime, reducing the number of taxable brackets to five. Dec 30, 2024 · A comparison of the new tax regime slab rates for FY 2024-25 (AY 2025-26) against those for FY 2023-24 (AY 2024-25) reveals that the new regime provides additional tax relief, making it a more appealing option for many taxpayeRs. As your income increases, so does your tax rate. The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax regime. 55 lac). Know all the changes announced in the new tax regime from income tax slabs to standard deduction limit in Budget 2024. The tax slabs were revised, the rebate under Section 87A was extended up to Rs 7 lakh of income, benefit of standard deduction in new tax regime was introduced as well, and, above all, the new tax regime became the default option. Seo description. 5 lakh under the new tax rates introduced under budget 2023 for the new tax regime, which is a reduction from the earlier tax liability of INR 1. The income tax slabs have been revamped under the new tax regime. May 24, 2024 · The new tax regime introduced in Budget 2023 offers lower tax rates but does not allow most of the deductions and exemptions available under the old tax regime. Jul 30, 2024 · Under the previous tax regime, this threshold was set at five lakhs. Thus, persons in the new tax regime, with income up to 7 lakh will not have to pay any tax. This is among the highest in the world. Jan 10, 2024 · On the contrary, the new tax regime simplifies the taxation process through rationalised tax rates and slabs but does away with most of the tax exemptions and deductions. These changes were introduced to support taxpayers, especially those with low annual incomes. How is New regime different from Old Tax regime: New vs Old Tax regime. 2,50,000. If you wish to re-enter into new tax regime then you can file Form 10IEA for withdrawal option in the next assessment year. There are changes in the rebate limit and in tax slabs. This means that people up to 60 years, senior citizens (60-80 years), and super senior citizens above 80 years are subject to the same income tax slabs. It also provides insights into which regime is better suited for different income groups. Apr 16, 2024 · Explore the exemptions and deductions allowed under the new tax regime for FY 2023-24 (AY 2024-25). 5 crores, the concessional surcharge rate of 25% applies under the new tax regime vis-à-vis the 37% under the old tax regime, thereby lowering the Apr 6, 2024 · The video provides the overview of the new and the old tax regime, tax slabs and benefits of opting the new or old tax regime for AY 2024-25. The revisions include new income tax slabs for the fiscal year 2024-25. The new income tax slabs under the new tax regime have retrospectively come into effect from April 1, 2024 for the current financial year 2024-25. Between Rs 2,50,001 to Rs 5,00,000, a 5 per cent tax is levied. Note 4: Finance Bill 2023 also proposes the new income tax regime as the default tax regime. Jun 5, 2024 · The income tax slabs in the 2024-2025 new tax regime will remain unchanged for the financial year 2024-25 (assessment year 2025-26), as no updates were announced in the interim budget. Income tax slabs under new tax regime for FY 2023-24, FY 2024-25; Income tax slabs (Rs) Income tax rate (%) From 0 to 3,00,000: 0: In Budget 2024, the income tax slabs under the new tax regime have been revised. Mar 19, 2023 · The AY 2024–2025 will see the implementation of the new tax slabs under the New Tax Regime as suggested in Finance Bill 2023. Find out the key changes, eligibility criteria, and benefits of each regime for individuals, senior citizens, and companies. 75 lakhs; Potential Savings: ₹41,000; Remember: The new regime might look simpler, but calculations need to factor in your complete financial picture! Always consult a tax expert for your specific case. Income Tax Slab % Rate Up to Rs. The old regime still exists, offering a slightly different set of slabs with more options for exemptions and deductions like HRA, standard deduction, etc. The new tax regime is different from the old tax regime in three aspects. Dec 14, 2024 · The Indian income tax system offers two regimes: the new regime with simplified rates and the old regime with deductions. 300,001 to Rs. In the old tax regime, taxpayers have the option to claim various tax deductions and Amount deductible from gross salary (except standard deduction), which is not allowed under the new regime i Following are not allowed to be deducted in new regime: Exemption with respect to travel concession or assistance as covered in section 10(5); HRA exemption as covered in section 10(13A); Feb 7, 2023 · Budget 2023 proposes to increase the rebate limit to 7 lakh in the new tax regime. 5 lakh, with slabs of 5% on income between ₹2. It is important to note that income tax slabs and rates in new tax regime has been revised from April 1, 2023 for FY 2023-24. However, the amount of deductions that must be claimed by you varies for every different income level. 1 The new tax regime has rationalized the scope of taxation with five tax slab rates ranging from 0% to 30% with the basic exemption till Rs. Step 2: Select Quick Links > Income and Tax Calculator. The new tax slabs under the new tax regime for FY 2024-25 (AY 2025-26) are shown in the table below, whereas under the old tax regime, the income tax slabs and rates remain unchanged. Feb 3, 2023 · Maximum Tax Along with Surcharge: It was proposed to reduce the highest surcharge rate from 37% to 25% in the new tax regime. Old Regime Tax: ~₹4. In the Union Budget 2020, the Government of India introduced a new regime tax slab for individuals, businesses, and Hindu Undivided Families (HUFs) under Section 115 BAC of the Income Tax Act, 1961. Then for the FY 2021-22 (AY 2022-23) , under new tax regime , what is the applicable income tax slab for me . From Assessment Year 2024–2025, the tax liability under the old Oct 28, 2024 · These rates are applicable under the new tax regime. Jul 26, 2024 · Reduced Tax Slabs: Compared to the old tax regime, the new tax regime has lower slab rates. Jul 28, 2022 · With regards to income tax slabs, the old regime has higher tax rates and three tax slabs, whereas the new regime has lower tax rates and six income tax slabs. NRIs opting for the new tax regime with lower rates will not be eligible for certain exemptions and deductions (like 80C, 80D, 80TTB, HRA). f AY 2024-25 to make new tax regime the default tax regime for the assessee being an Individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person. This implies that people earning up to Rs 7 lakh would not have to pay any tax under the new regime! Simplified Tax Slabs; The tax exemption limit has been raised to 3 lakhs, and the new tax slabs are as follows. The new income tax regime will be the default tax regime. The budget was presented in July instead of February due to the Lok Sabha Elections 2024 held in April, May, and June, as opposed to the usual February presentation. However, eligible taxpayers can choose to opt out of the new tax regime and continue under Dec 24, 2024 · New Tax Regime. Finance Minister Nirmala Sitharaman’s revisions aim to simplify tax compliance and incentivize individuals to transition from the old to the new regime. The new tax slab would be the default tax slab. Optimize your returns with FCNR rates. 7 Jul 24, 2024 · Standard deduction of Rs 50,000 under the New Tax Regime applicable from FY 2023-24; Deduction under Section 57(iia) of family pension income; Amount paid or deposited in the Agniveer Corpus Fund under Section 80CCH(2) Tax Saving Options Above 20 Lakhs Salary - Old Tax Regime . The proper choice of regime will, therefore be the difference in your income tax liability and financial planning . Aug 17, 2022 · The new tax regime includes seven lower income tax slabs, thus it is beneficial for taxpayers who make low investments. Learn about the benefits, rebate, and comparison of the new and old tax regimes. The new Tax Slab FY 2023-4 is given below. However, the tax slab rates are concessional compared to the old tax regime. Jun 13, 2022 · I am salaried person up to December 2021 and I will be getting pension from January 2022. Pl reply 17 hours ago · Income Tax Calculation: The government has given taxpayers the option to choose between two income tax regimes: the old regime and the new regime. In case of "non-business cases ", option to choose the regime can be exercised every year directly in the ITR to be filed on or before the due date specified under section 139(1). Feb 1, 2023 · major announcements in personal income tax to substantially benefit the middle class persons with income up to rs. The Income Tax Act, 1961, allows taxpayers to choose between two regimes: the old regime, which offers several deductions and exemptions, and the new regime, which provides lower tax rates but no exemptions. Income from Business & Profession Jul 19, 2024 · Income Tax Slabs Remain Unchanged; New Income Tax Slab for FY 2022 – 2023 (AY 2023 – 2024) New Regime Income Tax Slab Rates for Individual; Things You Must Keep In Mind Before Opting for New Tax Slab; Income Tax Slabs & Rates as Per Old Regime FY 2022 – 2023. The new tax slabs are 1) 0-3 lakh - Nil, 2) Rs 3-6 lakh - 5 per cent, 3) Rs 6-9 lakh - 10 per cent, 4) Rs 9-12 lakh - 15 per cent, 5) Rs 12-15 lakh - 20 per cent and 6) 30 per cent for anything income above Rs 15 lakh. 3 lakhs exempt from tax and the highest Oct 12, 2024 · Income Tax Slabs for FY 2023-24 (AY 2024-25) The new Income Tax Slab is allowed in the Budget 2023. New tax regime becomes default tax regime: From April 1, 2023, the new tax regime became the default tax regime. Rs 0 to Rs 3 lakh – 0% tax. The second tax slab is with a lower tax rate. More than ₹ 1 Crore Dec 26, 2024 · The new tax regime provides for concessional rates of taxes for multiples slabs whereas old regime provides for standard rates of taxes From FY 2024-25 onwards NEW * per latest Budget 2024 on Jul 23rd 2024 Sep 14, 2023 · 4. Senior citizens over 60 years of age have an option to pay tax as per the old or the new tax regime. So these are the Income Tax Slabs in India for FY 2022-23 in Old and New Tax Regimes. Hence to promote this new regime in Union Budget 2023-24 the tax slabs were revised for the new regime along with other changes. Apr 1, 2023 · The New Tax Regime, also known as the Alternative Tax Regime, is an optional choice for the Assessment Year 2023-24. In the new tax regime, the tax rates are lower, but there are fewer deductions. One of the downsides of the Old Tax Regime was its complexity. Jan 9, 2024 · Slide -1- TAX slabs for New vs Old for AY 2024-25. 7 lakh will not pay income tax in new tax regime tax exemption limit increased to rs. Hence, opting for the new tax regime is a good option if you have a minimum investment. NIL. Here is a look at the latest income tax slabs and rates for FY 2021-22 (for ITR filing purposes) and FY 2022-23 (for tax-saving purposes). This means that unless and until an individual explicitly chooses the old tax regime, the person’s income will be taxed as per the new tax regime's slabs. Slide -3 – New regime – List of Deductions not allowed as compare to Old. Refer Difference between Old Tax Regime and New Tax Regime Dec 18, 2024 · New Tax Regime vs Old Tax Regime: Key Updates for FY 2023-24. Feb 1, 2021 · The difference between the Old Tax Slab and New Tax Slab (in this case) is that in the new regime, you end up paying Rs 40,000 more (Rs 1. May 29, 2024 · NRI New Regime income tax slab rates FY 2023-24. The old tax regime allows various deductions and exemptions, whereas the new tax regime offers lower tax rates but with limited deductions and exemptions. Rs 9 lakh to Rs 12 lakh – 15% tax. The new tax regime has more slab rates than the old one, making it more attractive to taxpayers due to the Apr 9, 2024 · Right from the starting of the new Financial Year 2024-25 that has began from 1 st April, 2024 it is important for the taxpayers to know about the income tax rates as well as income tax slabs applicable to them – both under the old tax regime and new tax regime. 1 crore, a surcharge of 12% will be levied on the income tax payable. Tax Slab under the old regime are as follows; However, under the new tax regime for FY 2024-25, the income tax slabs and rates are the same for everyone, regardless of age. Feb 4, 2023 · Income tax slab: The Finance Minister made changes in the income tax slabs under the new tax regime. Oct 7, 2024 · Income Tax Slab For Senior Citizen. The New Tax Regime will be the default tax bracket to follow unless you specifically choose the old tax slab while filing your tax returns. A standard deduction of Rs 50,000 has been introduced for salaried individuals and pensioners under the new tax regime. Income Tax Bracket in India for Super Senior Citizens (New Tax Regime) So the tax slab rates in new tax regime is same for super senior citizens as well. For income in FY 2022-23 (AY 2023-24), you will have to file Jul 22, 2024 · The new tax slabs under the new income tax regime will be effective from April 1, 2024 (Assessment Year 2025-26). e. Apr 24, 2024 · The primary highlight of the new regime tax is the streamlined tax slabs and revamped tax rates. Introduction to the New Tax Regime 2024: The Indian government has introduced significant changes to the tax regime under the Budget 2024, with the new tax system now being the default option for taxpayers. What else exemption I will be getting for the FY 2021-22 ( AY 2022-23) . Rs 6 to 9 lakh – 10% tax. New Budget 2024 announced on Jul 23rd 2024 revised the earlier tax slabs for New Tax Regime (NTR). 25,000 if the taxable income is less than or equal to Rs. While the new regime offers revised tax slab rates and reduced surcharges, the old regime retains familiar deductions. Jan 7, 2025 · ClearTax: Income Tax Slabs for FY 2024-25 (New and Old Regime Tax Rates)ClearTax offers a detailed explanation of the revised income tax slabs under the new regime, including a comparison with the old regime. 16 lakhs; New Regime Tax: ~₹3. Check out the latest income tax slab for the Jun 25, 2022 · Difference of tax slab rates between New tax regime vs Old Tax regime. 3 lakh change in tax structure: number of slabs reduced to five salaried class and pensioners to gain on extension of standard deduction benefit to the new tax regime maximum tax rate reduced to The Union Budget 2024 introduced several changes, especially to the new tax regime. An individual must choose the tax regime which lowers their income tax outgo. Calculate your income tax under the new tax regime applicable to AY 2024-25 and 2025-26. For the income tax return filing for FY 2022-23 (AY 2023-24), whose last date of filing is July 31, 2023, the old income tax slabs under the new tax regime will be applicable. , between April 1, 2023 and March 31, 2024. Also, it removed all available deductions and exemptions. 75,000. With the new tax regime slabs, certain changes have come about. Note: Income tax exemption limit for NRI taxpayers is up to Rs. Here are the income tax slabs for individuals under the new tax regime for FY 2023-24 (AY 2024-25): Up to Rs. Individuals or Hindu Undivided Families (HUF) looking to benefit from this regime must refer to Section 115BAC(5). Furthermore, the standard deduction has been hiked to ₹75,000, and the family pension deduction has been enhanced to ₹25,000 from ₹15,000, effective for FY 2024-25. Jul 25, 2024 · While the new income tax regime was introduced in FY21, the Union Budget for FY24 revived it. Slide-4- NEW vs Old colmparison for diff. Surcharge Rates in Old Tax Regime. You also have to option to choose old tax regime Jan 11, 2024 · To enhance ease of compliance and encourage more taxpayers to choose the new regime, the Finance Minister, adjusted the tax slabs and rates under the new regime. Additionally, the standard deduction has been increased to INR 75,000, and the family pension deduction has been raised to INR 25,000 from the Jul 23, 2024 · Option 2 – New Tax Regime – Income Tax Slab 2 – Lower Tax Rate. Simplicity. However, citizens will continue to have the option to avail the benefit of the Improved rebate, modified tax structure/slabs, reduced surcharges, higher exemption on leave encashment for retirees in private-sector and extension of standard deduction in the New Tax Regime were announced by the Finance Minister, Nirmala Sitharaman during Parliament's Budget Session on 1 February 2023. Conclusion: Navigating the choice between the new and old tax regimes requires careful consideration of various factors. The number of income tax slabs under the new tax regime has been reduced to five, down from six in the previous regime. Aug 6, 2024 · The introduction of the new tax regime has increased the rebate limit. Taxpayers can enjoy the benefits of new tax slabs, increased standard deductions and enhanced family pension. Prerequisites to Avail This Service • Access to the e-Filing portal Step-by-Step Guide. Below are some key points about new tax slabs 2023-24. For income between ₹7 lakh and ₹10 lakh, the tax rate has been reduced from 15% to 10% Standard Feb 1, 2023 · The new income tax slabs announced under the new tax regime are applicable for the incomes earned in the FY 2023-24, i. For instance Jul 30, 2024 · Latest income tax slabs for FY 2024-25: Here are the latest income tax slabs that will be effective for the current financial year after Budget 2024. Additionally Tax Slabs for AY 2025-26*** The Finance Act 2024 has amended the provisions of Section 115BAC w. More than ₹ 50 lakhs ≤ ₹ 1 Crore. Note : In new regime Rebate under Section 87A up to Rs. Oct 16, 2024 · Income tax in India is a direct tax that is levied based on progressive slab rates. Now we have 6 slab rates in new tax regime in FY 2023-24 instead of 7 in FY 2022-23. Some key updates include: Changes in Tax Slabs Under New Regime. 1 day ago · Old Tax Regime vs New Tax Regime: The Finance Act 2024 has amended Section 115BAC, effective from AY 2024-25, designating the new tax regime as the default for individuals, HUF, AOP (excluding cooperative societies), BOI, or Artificial Juridical Persons. She has made the new tax regime more attractive. 6,00,000: 5% (Tax Rebate u/s 87A) Rs. Here we are presenting you the necessary information to assess income Feb 1, 2023 · major announcements in personal income tax to substantially benefit the middle class persons with income up to rs. 5 lakhs. L atest income tax slabs FY 2024-25: Finance Minister Nirmala Sitharaman has changed the income tax slabs effective FY 2024-25 under the new income tax regime as announced in Budget 2024. 17 hours ago · Tax Slabs in the New and Old Tax Regimes. Dec 20, 2024 · The Budget 2024 introduced significant changes to the tax slabs under the New Tax Regime, which will be applicable for FY 2024-25 (AY 2025-26). From Rs 5 Mar 9, 2021 · New tax slabs in new tax regime: If you are planning to opt for a new tax regime in the current financial year 2023-24, then here are the income tax rates and slabs for the same. Jul 15, 2024 · Income Tax Slabs. As there is no option to withdraw Form 10-IEA in that case whether my return can be filed under new tax regime? Once Form 10IEA is filed for AY 2024-25, then it cannot be revoked / withdrawn in same AY. According to CNBC, one advantage of this regime is the standard deduction of ₹75,000, which helps reduce taxable income without requiring proof of investments. Compare the income tax slabs and rates for the new and old tax regimes for the financial year 2024-25 (assessment year 2025-26). Feb 1, 2023 · In the new income tax regime, lower income tax rates and more slabs with no option of availing tax exemptions and deductions have been made available for taxpayers. Following the changes in Budget 2024, the income tax slabs have been expanded to cover broader income ranges, making the regime more attractive. Sep 24, 2024 · For the assessment years 2024-25 and 2025-26, tax rates under the old tax regime for individuals, HUFs, AOPs, BOIs, and artificial juridical persons offer an exemption limit of ₹2. An individual has to choose between new and old tax regime to calculate their income tax liability, subject to certain conditions. New Tax Regime 2024: Check out here all the frequently asked questions about the new income tax regime for FY 2024-25 slabs, calculator, and deductions for salaried employees. NOTE: Please note that the tax rates in the New tax regime are the same for all categories of Individuals, i. Feb 2, 2023 · The revised tax slabs under the new regime will be applicable for Assessment Year (AY) 2024-25 or for the income made in FY 2023-24. Income Tax Slab for Individuals Who Are Below 60 Years Jul 23, 2024 · Latest income tax slabs: In today's Budget 2024, the finance minister Nirmala Sitharaman has made changes in the income tax slabs and rates for the current financial year in the new tax regime. 95 lac – Rs 1. A new tax regime was introduced in Budget 2020 wherein the tax slabs were altered, and taxpayers were offered concessional tax rates. What does this mean for the taxpayer? ↗️ FM Sitharaman proposed a 33% increase in capital investment outlay, raising it to Rs 10 lakh crore Oct 21, 2024 · Claim a tax rebate under section 87A if your total income does not exceed Rs 7 lakh under the new tax regime & 5 lakh for the old tax regime (shifting out of the default tax regime) The maximum rebate under section 87A for the AY 2024-25 is Rs 25,000 under the new tax regime and Rs 12,500 under the optional tax regime. Oct 20, 2024 · Tax Slab under New Tax Regime FY 2024-2025 The 2024 Budget introduced updated tax slabs in the New Tax Regime, allowing taxpayers to save an additional ₹17,500 in taxes. 25,000 is applicable for resident individuals if the total income does not exceed Rs 7,00,000 (not applicable for NRIs) Jan 6, 2025 · Income Tax Slabs FY 2024 - 25: New Tax Regime Vs Old Tax Regime Updated on January 7, 2025 , 436 views. Here are the revised income tax slabs under the new tax regime for FY 2024-25: Income up to ₹3 lakh: Nil ₹3 lakh – ₹7 lakh: 5% Jul 23, 2024 · The new income tax slabs under the new tax regime effective FY 2024-25 onwards are: INCOME TAX SLABS: TAX RATE: 0-RS 3 lakh: Nil: Rs 3 lakh - Rs 7 lakh: 5 per cent: Rs 7 lakh - Rs 10 lakh: Feb 2, 2023 · New tax regime 2023: Budget 2023 announced a few changes in the new income tax regime and revised tax slabs to make it more attractive for taxpayers. The income tax slab rate as per the new tax regime for senior and super senior citizens: No tax charged up to Rs 2,50,000. Tax rates have been reduced under the new tax regime and the maximum The old and new tax regimes differ in their tax slabs and rates. For individuals aged between 60 and 80 years basic exemption is Rs 3,00,000 and for individuals aged over 80 years, the basic exemption is Rs 5,00,000. If any of your friends is confused about the Tax slab rates in India than share this article with them! Mar 23, 2024 · After that new tax regime will be beneficial. It continues to exist with the Sep 30, 2024 · The new tax regime is designed to offer simplified tax rates with fewer deductions and exemptions. This service also provides a calculation of tax under the old or new tax regime with a comparison of tax as per the old and new regime. Feb 22, 2023 · The new tax regime offers six tax slabs, with zero tax for income up to ₹3 lakh, and a tax rate rising by 5 percentage points for incremental income of ₹3 lakh each. The basic exemption limit was hiked to Rs 3 lakh from Rs 2. On Income Tax Rate 1 day ago · Since the new regime offers seven lower tax slabs, it can result in lower tax liabilities for individuals who don’t claim many deductions. So basically, every person will have his own unique New Tax Slab Vs Old Tax Slab calculation as the deductions claimed by the person may be unique to him. The In the Union Budget 2024, the Finance Minister announced significant changes to the new income tax regime. However, under the new tax regime, this rebate limit has increased to Rs. 91 lakh would face a higher tax liability under the old regime than the new one. Consequently, the new regime was declared as the default tax structure for taxpayers starting from the financial year 2023-24. These changes apply to income earned from April 1, 2023, to March 31, 2025, with distinct categories for: To accurately calculate your tax liabilities, you can use our income tax calculator, which is a cost-effective alternative to hiring a professional tax consultant. Here we have answered a few important questions regarding the revised new tax regime 2023. Among the key highlights are the revised tax slabs, increased deductions and exemptions for salaried employees and pensioners, and the abolition of the angel tax, each designed to foster economic growth, simplify the tax system, and support innovation. Jul 24, 2024 · Budget 2024: The latest income tax slab for FY 2024–25 has been announced by the finance minister of India, Nirmala Sitharaman, on 23rd July, 2024. Proposed Tax Structure: Income up to Apr 4, 2024 · Income Tax Slabs 2024-25 New Tax Regime: In the new income tax regime, the rebate eligibility threshold is set at Rs 7,00,000, allowing taxpayers to claim a rebate of up to Rs 25,000. Feb 1, 2023 · ↗️ First, what everyone has been looking forward to: changes in the new income tax regime. There is no tax on 4 days ago · Income Tax Regimes COMPARED: In case of eligible taxpayers having income from business and profession, the new tax regime is the default regime. 7 lakhs. So, people can choose the option according to their financial needs. Less than ₹ 50 lakhs. . Below is a detailed comparison of the income tax slab rates under the new tax regime for FY 2024-25 versus FY 2023-24. 10% . Updated Income Tax Slabs & Rates Under the New Tax Regime for FY 2024-25: New Regime Income Tax Slabs Jul 23, 2024 · Budget for FY 2020-21 announced on Feb 1st 2020 introduced a new IT Regime where lower tax rates applicable for those who forego exemptions, deductions, & reliefs. ycckp gmswuq yid imrmwp etexhsnj ymvvuz ljva cmlopr xvzho yixw