Income Tax Alert! You have to opt for old regime to get income tax exemption. As April begins, taxpayers have also started calculating their money. Koi wants to avoid tax on home loan and on investment and allowance. But, in this case, if you miss a deadline, everything will be delayed and you will not get tax exemption of one paise.
March ended and April began, and the race for income tax began. The struggle to save tax by sitting with the CA has also started. Koi is calculating to save money in the new regime then someone is calculating to save tax on the money received from the market including home loan, investment of 80C and insurance by applying the old regime. But, in between all these अपाधापी उर माथापच्चची, don’t forget an important date or rather deadline. If this limit is exceeded then no income tax exemption will be available. Even if you are paying home loan interest or earning interest from FD.
Actually, we are talking about Income Tax Return (ITR Filling) for the financial year 2023-24, whose deadline has already been set by the Income Tax Department as 31st July, 2024. If you file your ITR before this deadline then you will be given an opportunity to opt for the old regime. Taxpayers will not be given the option to opt for the old regime after the deadline has passed.
What is Old and New Regime
The government introduced a new tax regime in 2019, in which the income tax slab rates are lower, but there is no tax exemption. The government implemented the new regime by eliminating 70 tax exemptions. At the same time, the slab rate in the old regime is higher, but it includes a direct tax exemption of Rs 3.50 lakh on home loan interest and principal, Rs 1.5 lakh under 80C and Rs 75 thousand on insurance. Apart from this, you get tax exemption on other options as well.
Why choose a regime?
The government has implemented the new tax regime by default from the 2023 budget. This means that if the investor does not choose any regime then his income will be assessed under the new regime and tax will be deducted at its rate. This means that if you have to take tax exemption on loans, investments or other allowances, you will have to choose the old tax regime yourself. For this, it is necessary to file the return before 31st July.
If you missed the deadline then…
If a taxpayer does not file their return by 31st July then such taxpayers will be given an opportunity to file billed ITR from 1st August 2024 to 31st December 2024. That is, such taxpayers will be able to file their returns by paying some penalty, but they will not be allowed to use the old tax regime. In this case, tax will be deducted directly from their earnings at the same rate by applying the new regime.
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