Income Tax: Understand this math of tax, if the income is more than 7 lakh rupees then these people will not have to pay tax!
Income Tax Return: Those who opt for the new tax regime will have to give up various exemptions like HRA, LTA, Section 80C, Section 80CCD etc. But if the taxpayer is a salaried individual, then in that case taxpayers can claim standard deduction up to Rs 50,000.
Income Tax Slab: In the Union Budget 2023, Finance Minister Nirmala Sitharaman has made some changes in the new income tax regime to make it more attractive for taxpayers going to file Income Tax Return (ITR) in the financial year 2023-24. From April 1, 2023, the benefit of section 87A has been extended to the new tax regime and taxpayers opting for the new tax regime in FY 2023-24 will be able to claim tax rebate of up to ₹ 12,500 in a financial year or assessment year.
- tax benefit
However, those who opt for the new tax regime will have to give up various exemptions like HRA, LTA, Section 80C, Section 80CCD etc. But if the taxpayer is a salaried individual, then in that case taxpayers can claim standard deduction up to Rs 50,000. In this case, for a salaried earning individual, there is no tax on annual income up to Rs 7.50 lakh and whoever is filing ITR then needs to maintain it.
- old tax regime
At the same time, the benefit of section 87A was earlier limited only to the Old Tax Regime, but now from the next financial year this benefit will be available for the New Tax Regime as well. Therefore, in the new tax regime, up to Rs 7 lakh annual income in a financial year will also be non-taxable.
- New Tax Regime
However, in the case of salaried taxpayers, an additional standard deduction of up to Rs 50,000 per annum is available. Therefore, if the taxpayer is salaried and his annual income is Rs 7.5 lakh or less, he can claim standard deduction up to Rs 50000 and avoid paying tax.