Income Tax: These deductions and exemptions are allowed only under old tax regime
4 days, 22 hours ago

Income Tax: These deductions and exemptions are allowed only under old tax regime

Live Mint  

In the financial year 2023-24, the new tax regime became the default regime. Here, we list some of the common deductions allowed under the old tax regime. Please note that these exemptions are allowed only under the old tax regime. It is vital to note that the old tax regime has slightly higher tax rates than the new tax regime. Income Tax rate Surcharge Up to ₹ 2,50,000 Nil Nil ₹ 2.5-5 lakh -- 5% above ₹ 2.5 lakh NIL ₹ 5-10 lakh ₹ 12,500 + 20% above ₹ 5,00,000 NIL ₹ 10-50 lakh 1.125 lakh + 30 percent above 10 lakh NIL ₹ 50 lakh - one crore 1,12,500 + 30 percent above 10 lakh 10% ₹ 1-2 croe 1,12,500 +30 percent above ₹ 10 lakh 15% ₹ 2-5 crore 1,12,500 + 30% above ₹ 10 lakh 25% Above ₹ 5 crore 1,12,500 + 30 percent above ₹ 10 lakh 37% Meanwhile, resident individuals are also entitled to a rebate of up to 100 per cent of income tax subject to a maximum limit depending on tax regimes as under:

Tax Old Lakh Regime Old Tax Regime Deductions Allowed  income  regime  30  deductions  allowed  nil  tax  exemptions  old  lakh  112500

History of this topic

Pre-budget outlook: How to make the new tax regime more enticing and simplify compliance
1 week, 2 days ago

Pre-budget outlook: How to make the new tax regime more enticing and simplify compliance

Live Mint  

As the budget season approaches, anticipation grows over how the government will balance growth ambitions and fiscal responsibility. A press release issued on 2 August 2024 showed that 72% of taxpayers who filed their returns by 31 July 2024 chose the new tax regime, up from 67 percent in FY23. The new tax regime appeals to those with straightforward finances, …

Income Tax: New tax regime continues to allow these deductions and exemptions
2 weeks, 5 days ago

Income Tax: New tax regime continues to allow these deductions and exemptions

Live Mint  

With the new tax regime becoming the default regime lately, several taxpayers are anxious about having lost the eligibility to claim deduction. What, however, is not known to many people is that some deductions and exemptions are still allowed in the new tax regime. New tax regime: These deductions are still allowed 1.Standard deduction: Standard deduction amounting to ₹75,000 or …

How to switch to old tax regime from new tax regime for filing income tax
5 months, 2 weeks ago

How to switch to old tax regime from new tax regime for filing income tax

Hindustan Times  

The current income tax rules does provide the freedom for taxpayers to choose between the new tax regime and the old tax regime based on whichever may be more advantageous to them. Is it possible to switch to the old tax regime after choosing the new tax regime? Is the old tax regime or the new tax regime better? The …

Which income tax regime should salaried employees choose? Details here
1 year, 8 months ago

Which income tax regime should salaried employees choose? Details here

Hindustan Times  

With the onset of new financial year on April 1, several new income tax laws like the new tax regime being set as the default one to the increase in the tax rebate limits, came into effect. Under the new tax regime, an individual with an annual income of up to ₹ 7 lakh would not be required to pay …

Income tax new regime: These are the deductions you can still claim
1 year, 9 months ago

Income tax new regime: These are the deductions you can still claim

Live Mint  

Many taxpayers are confused about whether to file taxes under the new tax regime or continue with the old tax regime. As opposed to the old tax regime where one could one claim deductions under various sections pursuant to long-term savings, investments in Public Provident Fund, health insurance premiums, house rent allowance received or the principal repayment on home loans …

Opt new tax regime if deduction, exemption claims less than Rs 3.75 lakh: Official
1 year, 11 months ago

Opt new tax regime if deduction, exemption claims less than Rs 3.75 lakh: Official

India Today  

A taxpayer whose deductions and exemption claims are less than Rs 3.75 lakh annually would be advised to opt for the new income tax regime and pay less tax than they gave in the old regime, a senior finance ministry officer said Wednesday. According to the changes proposed in the Budget, no tax would be levied on people with an …

New Tax Regime Will Be Default System, Payers Can Opt For Old Regime
1 year, 11 months ago

New Tax Regime Will Be Default System, Payers Can Opt For Old Regime

ABP News  

Finance Minister Nirmala Sitharaman on Wednesday announced that the New Tax regime will be the default tax system. FM Sitharaman also proposed to increase the income tax rebate limit to Rs 7 lakh under the new tax regime. Sitharaman proposed increasing the rebate limit from Rs 5 lakh to Rs 7 lakh in the new tax regime, meaning individuals who …

Budget 2023: Will 'new' Income Tax regime have some more exemptions?
1 year, 11 months ago

Budget 2023: Will 'new' Income Tax regime have some more exemptions?

India TV News  

Budget 2023: As the government tries to encourage more people to choose the exemption-free personal income tax system, Union Budget 2023–2024 is likely to review the tax structure and possibly announce a few sweeteners. Individual taxpayers who opt out of the majority of deductions and exemptions will be able to pay taxes at rates that are comparatively lower under the …

How the new tax regime can be made attractive
2 years ago

How the new tax regime can be made attractive

Live Mint  

Expectations for tax sops are running high ahead of the Union Budget in February as it would be the last full budget of this government before the general elections in 2024. Currently, individual taxpayers have the option to choose between two tax regimes—the old tax regime that uses tax slabs of 5%, 20% and 30% and allows taxpayers to avail …

Union Budget 2022-23: Taxpayers may get incentives for moving to new income tax regime
2 years, 11 months ago

Union Budget 2022-23: Taxpayers may get incentives for moving to new income tax regime

India Today  

Taxpayers may be offered some incentives for switching to the optional income tax regime in the upcoming Union Budget 2022-23. Union Budget 2022-23: Some existing tax exemptions may be phased out A similar alternate income tax structure was announced by Finance Minister Nirmala Sitharaman on February 1, 2020 for individual taxpayers. Tax rates came down under the new income tax …

Thought new tax regime is good for you? Think again
4 years, 11 months ago

Thought new tax regime is good for you? Think again

India Today  

If you think switching to the new income tax regime will boost your disposable income and help provide a boost to demand, think again. It has been established that the new "simpler" income tax regime offers lower upfront tax labs in lieu of exemptions, which are a major component of the existing income tax structure. According to Finance Minister Nirmala …

Budget 2020: Full list of deductions and exemptions you can avail in new tax regime
4 years, 11 months ago

Budget 2020: Full list of deductions and exemptions you can avail in new tax regime

India Today  

The income tax provisions in the Union Budget 2020 have given taxpayers a bonanza with a caveat. Presenting the Budget 2020, Finance Minister Nirmala Sitharaman said that 70 out of 100 deductions available to taxpayers in the old regime will not be available in the new regime. As per the new tax regime, the people earning up to Rs 5 …

Budget brings new income tax slabs, but old regime also stays | Explained
4 years, 11 months ago

Budget brings new income tax slabs, but old regime also stays | Explained

India Today  

The government announced a major overhaul of the income tax structure Saturday morning. Under the new proposed regime, the income tax slabs will be as follows: - For incomes of up to Rs 5 lakh per year, there will be no income tax. - For incomes between Rs 5 lakh and Rs 7.5 lakh per year, the income tax to …

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