Income Tax News: The new financial year 2024-25 is going to start from April 1, for which there will be partial changes. It is important for businessmen to be careful about some things. Also, it is important for the general public to be aware of these changes.
Some key changes you should know about
There is no change in the rates of income tax, hence in the old tax system it varies according to the age of the person, whereas under the new tax system it will be as follows:-
- Rs 3 to 6 lakh – 5 percent on income above Rs 3 lakh.
- From Rs 6 to Rs 9 lakh – Rs 15,000 and 10 percent on income above Rs 6 lakh.
- 9 to 12 lakh – 45 thousand and 15 percent on income above 9 lakh.
- Rs 12 to 15 lakh – Rs 90 thousand and 20 percent on income above Rs 12 lakh.
- Above 15- 1 lakh 50 thousand and 30 percent on income above 15 lakh.
- No change was made in the income tax liabilities of the company, LLP (Limited Liability Partnership Firm) or any other person. The financial year will remain the same as 2023-24.
Tax concessions for sovereign wealth funds and startups have been extended till March 2025.
- Standard deduction of Rs 50,000, which was earlier applicable only in the old tax regime, will now be available for filing returns under the new tax regime. Now the new tax regime will be set as default, hence if you are in the old tax regime. If you are filing return under the new tax regime, then choose the correct option while filing the return, otherwise the return will be considered filed in the new tax system.
- Taxpayers whose income is more than Rs 5 crore will get benefit due to reduction in surcharge rate from 31 percent to 25 percent (effective from April 1, 2023).
- Maturity income from life insurance policies being issued on or after April 1, 2023, the aggregate premium of which exceeds Rs 5 lakh will be subject to taxation.
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