Income Tax Return: Giving good news to the ITR filers, Finance Minister Nirmala Sitharaman has given the benefit of 6 types of exemptions under the old tax regime. Along with this, in the new tax regime, the benefit of tax exemption has been given on annual income up to Rs 7 lakh. It is worth mentioning that this time in the budget presented in February, the Finance Minister had announced changes in income tax. According to the Finance Minister, after increasing the exemption under the new income tax regime, taxpayers with an annual income of up to Rs 7 lakh will save Rs 33,800 in tax.
Let us tell you that there are some benefits in the new tax regime, but there is no exemption on any investment, although 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. Various types of exemptions are available in the old tax regime. Which are as follows:-
Standard Deduction: Rs 50,000 exemption for salaried individuals. income tax
- Section 80CCD (1B) – Additional deduction of up to Rs 50,000 will be available for the amount deposited in NPS account.
- 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.
- Section 80D: It allows deduction on health insurance premium.
- Section 80G: Donations made to eligible trusts and charitable institutions are deductible.
- Section 80C: Invest in EPF and PPF, ELSS, life insurance premium, home loan payment, SSY, NSC and SCSS and get exemption. For your information, let us tell you that those who file ITR are required to file 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. income tax
According to a circular of the Central Board of Direct Taxes, ‘If the information is not given by the employee, it will 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 (ia) of section 115BAC of the Act. income tax
