Income Tax Update: : The term standard deduction refers to that part of income which is not subject to tax which can be used to reduce your tax. Now income taxpayers can get the benefit of standard deduction on filing tax even after filing ITR from the new tax regime.
If people had filed ITR by the due date 31 July 2023, then they would not have to pay any extra fees. However, now if a person files income tax return from August 1, 2023, then he will be able to file income tax return till December 31, 2023. However, for this, that person may also have to pay late fees.
Late fee
On the other hand, those who will file income tax return by December 31, 2023, will have to pay late fees according to their income. If people’s income is not taxable then they will not have to pay late fees.
On the other hand, if people’s income is taxable but less than 5 lakhs, then they will have to pay a late fee of Rs 1000. Apart from this, if the income of people is more than 5 lakh rupees annually, then such people will have to pay 5000 rupees at the time of late fees.
Income tax return
While presenting the Budget 2023, many new announcements were also made by the Modi government. During this, a big announcement related to standard deduction for taxpayers was also made by Finance Minister Nirmala Sitharaman. Actually, earlier the benefit of standard deduction was not available in the new tax regime, but it was announced in the budget 2023 that now the benefit of standard deduction can also be obtained from the new tax regime.
Standard deduction
The term standard deduction refers to the portion of income that is not subject to tax that can be used to reduce your tax. Now income taxpayers can get the benefit of standard deduction on filing tax even after filing ITR from the new tax regime.
Standard deduction under the new tax regime
The benefit of standard deduction available to salary earners and pensioners (including family pensioners) has been introduced under the new tax regime. A person opting for the new tax regime for the financial year 2023-24 will be eligible to claim standard deduction of Rs 50,000. Family pensioners opting for the new tax regime will be eligible to claim standard deduction of Rs 15,000.
Zero tax on income up to Rs 7 lakh
A person opting for the new tax regime for the financial year 2023-24 will have to pay zero tax if the taxable income does not exceed Rs 7 lakh in a financial year. In addition, a person with a taxable income of up to Rs 7.5 lakh can claim the benefit of standard deduction of Rs 50,000. This will reduce the taxable income to Rs 7 lakh and thus he will get zero tax liability.
