New Tax Rule to be implemented from first April 2024

New With the start of the new financial year (FY 2024-25), there will be some noteworthy changes to India’s income tax regulations. These changes, which will be implemented from April 1, 2024.

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March 31,2024: Effective April 1, 2024, the  Central government of India  will implement Union Finance Minister Nirmala Sitaram in her last finance Budget declaration had announced that while the new tax regime would be the default, taxpayers could opt for the old one.

 

 

 

 

Sitharaman had proposed to raise the rebate limit from Rs 5 lakh to Rs 7 lakh in the new tax regime. Therefore, if an individual has opted for the new tax regime, he or she will not be required to pay any tax up to an annual income of Rs 7 lakh.

 

Advantages of the New Tax Implimentation:

The implementation of the new tax regime offers several benefits for tax payers described Below:

Simpllification of Tax Planning:

  • Taxpayers no longer need to maintain a track record of travel tickets and rent receipts.
  • The changes aim to simplify tax planning.

Increased Basic Exemption Limit:

  • The basic exemption limit has been elevated from ₹2.5 lakhs to ₹3 lakhs.
  • This makes the novel tax regime more appealing.

Surcharge Rate Reduction:

  • The surcharge rate for individuals with income exceeding ₹5 Crores has decreased from 37% to 25%.
  • This reduced surcharge rate applies only to those who choose the new tax regime.

Rebate Limit Enhancement:

  • Under the new tax regime, the rebate limit has increased.
    For incomes up to ₹7 lakhs, the applicable rebate limit is now ₹25,000.

 

 

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