Income Tax Slabs: At present two tax systems are running in the country. You can choose old tax regime or new tax regime as per your convenience.
Income Tax Slabs: With the arrival of the new financial year in the country, the income tax season has also started. But, currently two tax systems are running in the country. These are divided into Old Tax Regime and New Tax Regime. Both these systems have different advantages and disadvantages. Today we will try to understand which tax regime will prove beneficial for those doing jobs.
Benefit of deduction will be available in old tax regime
The new financial year 2024-25 has started from April 1. Now job seekers will have to choose between the old tax regime and the new tax regime. The government has now made the new tax system the default. This means that you will have to choose the old tax system otherwise you will be automatically put in the new tax system. The biggest difference between these two tax systems is regarding deduction. In the old tax regime, you get the benefit of many deductions under Section 80C, Section 80D and Section 80TTA of the Income Tax Act. You cannot avail this benefit in the new tax regime. In this, income tax has been divided into several slabs. But, you get the benefit of standard deduction up to Rs 50 thousand.
Income up to Rs 3 lakh tax free in new tax regime
In the new tax regime, income up to Rs 3 lakh is tax free. 5 percent tax exemption is available on income between Rs 3 to 6 lakh. 10% tax will have to be paid on income from Rs 6 to 9 lakh, 15% on Rs 9 to 12 lakh, 20% on income from Rs 12 to 15 lakh and 20% on income above Rs 15 lakh. In the old tax regime, there is no tax exemption on income up to Rs 2.5 lakh. After this, there will be 5 percent rebate on income of Rs 2.5 to 5 lakh, 20 percent rebate on income of Rs 5 to 10 lakh and 30 percent rebate on income more than Rs 10 lakh.
You can choose according to the facilities of the job
In such a situation, if you work, then you can choose the tax system for yourself according to the exemptions available in both these tax regimes. If you want to avail the benefit of deduction then the old tax system will be better for you. However, if you do not want to take advantage of the deduction system, then you can choose the new tax regime.
