Income Tax News: This time in the budget presented in February, the Finance Minister had announced changes in income tax. But do you know that you are getting the benefit of 6 types of exemptions under the old tax regime.
Income Tax Return: Finance Minister Nirmala Sitharaman (FM Nirmala Sitharaman) has given very good news to the income tax payers this time. This time, in the budget presented in February, the Finance Minister had announced changes in income tax. But do you know that you are getting the benefit of 6 types of exemptions under the old tax regime. Along with this, in the new tax regime, you are getting the benefit of tax exemption on annual income up to Rs 7 lakh.
Rs 33,800 will be saved
After increasing the exemption under the new income tax regime through the Finance Minister, taxpayers with an annual income of up to Rs 7 lakh will save Rs 33,800 in tax.
Benefits of income tax
There are some benefits in the new tax regime but there is no exemption on any investment in it. However, standard deduction has definitely been added to the new tax regime. On the other hand, if you want investment or other exemption, then you will have to file tax according to the old tax regime. Many exemptions are available in the old tax regime. Today we are going to tell you about it…
These exemptions will be available in the old tax regime –
1. Standard Deduction – For salaried individuals, the benefit of exemption of Rs 50000 will be available
2. Section 80 CCD (1B) – Additional deduction of up to Rs 50,000 will be available for the amount deposited in NPS account.
3. Section 80TTA – This section provides a deduction of a maximum of Rs 10,000 on interest income from a bank, co-operative society or post office savings account for an individual or a HUF.
4. Section 80D – It allows deduction on health insurance premium.
5. Section 80G – Donations made to eligible trusts and charitable institutions are eligible for deduction.
6. Section 80C – Invest in EPF & PPF, ELSS, life insurance premium, home loan repayment, SSY, NSC & SCSS and get exemption.
Will be part of the new tax regime if not selected
Let us tell you that taxpayers have to pay their income tax by 31 July 2023. Meanwhile, if you do not select any of the new and old tax regime, then your TDS will be deducted under the new tax regime.
CBDT gave information
The matter has become clear from a circular of the Central Board of Direct Taxes. It said, “If the intimation is not given by the employee, it shall be deemed that the employee continues to be in the default tax regime and has not exercised the option to opt out of the new tax regime. In such case the employer shall deduct tax at source on the income under section 192 of the Act, at the rates provided under sub-section (lA) of section 115BAC of the Act.”
