Explore the new Income Tax Regime to save tax
Explore the new Income Tax Regime to save tax
In the new tax regime, upper level wide tax slabs and lower tax rates were created to provide tax relief.
Finance Ministry had increased the limit of the new tax regime in the budget presented on 1 February 2023. Budget 2023 had tweaked the income tax slabs under the new tax regime.
The maximum exemption limit will be Rs 3 lakh and for every additional Rs 3 lakh income, the next slab rate will apply. Standard deduction has been extended to the optional tax regime.
Current new income tax vs old income tax slabs: Under the new tax regime, if your taxable income is up to Rs 7 lakh, then you will not have to pay any tax.
If you add the standard deduction of Rs 50,000 that was reinstated this year, a person with taxable income up to Rs 7.5 lakh will have to pay zero income tax.
At the end of the year, most companies ask their employees to submit investment certificates for tax saving. Your company might also have issued an e-mail asking for information in this regard.
With this year’s budget, the Finance Ministry made ‘New Tax Regime’ the default option for salaried taxpayers. In such a situation, if you do not inform the company about the tax regime, then income tax will be levied on you under the New Tax Regime.
Finance Minister Nirmala Sitharaman will present to Narendra Modi’s government interim budget for FY25 on 1 February 2024.
During an election year, the government does not present a full-fledged Budget, instead, it prepares an interim budget, also known as a vote on account.
