New revenue tax regime: In the union finances 2023, finance minister Nirmala Sitharaman made some modifications within the new revenue tax regime to make it extra enticing for a taxpayer going to file revenue tax return (ITR) within the monetary 12 months 2023-24. From 1st April 2023, good thing about Section 87A has been prolonged to new tax regime and people taxpayers choosing new tax regime in FY24 will have the ability to declare tax rebate of as much as ₹12,500 in a single monetary 12 months or evaluation 12 months. However, those that decide new tax regime, they must depart numerous rebates like HRA, LTA, Section 80C, Section 80CCD and so on. However, if the taxpayer is a salaried incomes particular person, then in that case, the taxpayer can declare normal deduction of as much as ₹50,000. so, in that case, for a salaried incomes particular person, annual revenue as much as ₹7.50 lakh is non-taxable and one must maintain this in whereas throughout ITR submitting.
Speaking on the brand new revenue tax regime, Pankaj Mathpal, MD & CEO at Optima Money Managers stated, “Section 87A benefit was earlier restricted to old tax regime only but now from next financial year, this benefit will become available to new tax regime as well. Therefore, up to ₹7 lakh annual income in single financial year will be non-taxable in new tax regime as well.”
However, in case of a salaries taxpayer, there’s an extra normal deduction of as much as ₹50,000 per annual obtainable. So, if the taxpayer is salaried and its annual revenue is ₹7.5 lakh or under, she or he can declare normal deduction of as much as ₹50,000 and keep away from nay revenue tax outgo.
On how one’s ₹7.5 lakh annual revenue is non taxable underneath new tax regime, Archit Gupta, MD & CEO at Clear stated, “Those who’re salaried, can declare normal deduction of ₹50,000. Therefore salaried people with whole revenue of as much as ₹7,50,000 pays zero tax by choosing the brand new regime. Such taxpayers then will be unable to say standard tax advantages reminiscent of HRA, LTA and so on.
Disclaimer: The views and suggestions made above are these of particular person analysts or private finance corporations, and never of Mint. We advise traders to verify with licensed consultants earlier than taking any funding choices.
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