Income Tax Calculator: The new tax regime has been the most discussed, many types of tax benefits are also discussed. Let’s talk today about those new rules related to income tax which have become effective from yesterday. You will have to be face to face with these rules throughout the year.
New Income Tax Rules: April 1 means the beginning of the new financial year. Along with this, many rules have changed. Changes in the rules related to income tax have come into effect for every taxpayer. Many changes related to income tax have come into effect from yesterday. The new tax regime has been the most discussed, many types of tax benefits are also discussed. Let’s talk today about those new rules related to income tax which have become effective from yesterday. You will have to be face to face with these rules throughout the year.
New tax regime as default tax regime
Now the new tax regime will remain the default tax regime. The entire format on the ITR portal will be as per the new tax regime. If you want to file tax return according to old tax regime, then you have to select it. That is, you will still get the option to file ITR in the old tax regime.
Change in tax slab!
With the new tax regime, there have been changes in the tax slabs from April 1. Now the earlier 7 tax slabs have been reduced to 6. In this, income up to 3 lakhs is tax free. In the old tax regime, income up to 2.5 lakh remains tax free. Under the new tax regime-
- Income from 3 to 6 lakhs—5%
- 10% on income from 6 to 9 lakhs
- 15% on income from 9 to 12 lakhs
- On income of 12 to 15 lakhs —- 20% more
- Income above 15 lakhs will be taxed at 30%
Benefits of finance bill
But with this, the exemption limit has been increased to 7 lakhs under section 87A in the new tax regime. Those earning up to 7 lakhs will not have to pay any tax. Apart from this, after the change in the Finance Bill, if you earn income slightly more than the tax free income of up to 7 lakhs, you will have to pay tax only on the additional income.
Earlier, the benefit of standard deduction was available only in the old tax regime. But now under the new tax regime, the benefit of standard deduction of Rs 50,000 will be available. From April 1, the tax surcharge of 37% has been reduced to 25%.
Taxpayers with income above 5 crores will pay 25% surcharge. Apart from this, the rule which has come into force from April 1 is that the limit of leave encashment for non-government salaried professionals has been increased from 3 lakhs to 25 lakhs.
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