Confused about Income Tax for FY 2024-25? Get clarity on New Tax Regime, Exemption Limits, Filing Dates & More! Simplify your taxes this year.
Income Tax Changes 2024:
With the start of the new fiscal year (FY 2024-25), several significant changes have been introduced in India’s income tax landscape. These changes aim to simplify tax planning, enhance exemptions, and streamline the tax regime. Let’s explore the key modifications that will impact taxpayers this financial year.
New Tax Regime as the Default Option
Starting from April 1, 2024, taxpayers will have to choose between the old tax regime and the new tax regime. The new tax regime has been introduced as the default option. Here’s what you need to know:
- Old Tax Regime: Taxpayers can continue using the existing tax slabs and deductions.
- New Tax Regime: The revised tax slabs apply, offering simplified rates.
Revised Income Tax Slabs
The new tax regime brings changes to the income tax slabs. Here’s the breakdown:
| Total Income | Tax Rate |
|---|---|
| Up to ₹3,00,000 | 0% |
| ₹3,00,001 to ₹6,00,000 | 5% |
| ₹6,00,001 to ₹9,00,000 | 10% |
| ₹9,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Advantages of the New Tax Regime
The implementation of the new tax regime will provide several benefits to taxpayers:
- Simplified Tax Planning: With the new regime, you no longer need to maintain records of travel tickets and rent receipts.
- Increased Basic Exemption Limit: The basic exemption limit has been raised from ₹2.5 lakhs to ₹3 lakhs.
- Reduced Surcharge Rate: For individuals with income exceeding ₹5 Crores, the surcharge rate has decreased from 37% to 25%.
Changes in Rebate Limit
Exemption limit has increased under the new tax regime. Previously, the applicable rebate limit was ₹12,500 for incomes up to ₹5 lakhs. Now, it has been raised to ₹25,000 for taxable incomes up to ₹7 lakhs.
What’s Not Changing?
While these changes are significant, some aspects remain consistent:
- Section 87A Rebate: The tax rebate under Section 87A has been extended to a taxable income level of ₹7 lakhs from the previous ₹5 lakhs.
Conclusion
As you navigate the new tax regime, keep these changes in mind. Whether you choose the old or new regime, understanding these modifications will help you make informed decisions for your financial planning.
Remember, consult a tax professional to tailor your approach based on your specific circumstances. Happy tax-saving!
Disclaimer: This article provides general information and should not be considered professional advice. Consult a tax expert for personalized guidance.