The central government had introduced the new tax regime in the budget 2020. This system has become effective from the financial year 2020-21. The central government wants more and more taxpayers to adopt the new tax system. For this reason, the government has continuously tried to make it simple. In this budget too, the government has proposed some changes to make the new tax regime attractive. However, after this there are many doubts and questions in the mind of taxpayers regarding the new tax system. Today we are trying to clear some of your questions…
What are the slabs and rates of income tax in the new tax regime?
In this year’s budget After the changes made, there are a total of six slabs under the new tax regime. Under this, the annual income of up to three lakh rupees is tax free. Income between Rs 3 lakh and Rs 6 lakh will be taxed at the rate of 5 per cent. Similarly, at the rate of 10 per cent on annual income from Rs 6 lakh to Rs 9 lakh, at the rate of 15 per cent on income from Rs 9 lakh to Rs 12 lakh, at the rate of 20 per cent on income from Rs 12 lakh to Rs 15 lakh. And income above Rs 15 lakh will have to be taxed at the rate of 30 per cent.
What is the basic exemption limit under the new tax regime?
In the new tax regime, the first 2.50 Earnings up to Rs 1 lakh were tax-free, but in the latest budget it has been increased to Rs 3 lakh. This means that if you are earning up to Rs 3 lakh per year, you will not be liable to pay any tax.
What is the surcharge amount under the new tax regime?
Income Tax Till now this surcharge was imposed on those people whose annual income was more than five crore rupees. Till now they had to pay 37 per cent surcharge. The government has reduced it to 25 per cent in the new tax regime, while now instead of five crores, surcharge will have to be paid on earning more than Rs 2 crore.
Is the new tax regime mandatory?
The new tax regime is not mandatory. The intention of the government is that there should be only one tax system in the coming time, but now there is an option of old tax system along with the new one.
What is meant by the default of the new tax system?< /h3>
The default of the new tax regime will mean that if you do not choose any option, it will be assumed that you have chosen the new tax regime. For this, the employers have also been asked to deduct tax according to the slab and rate of the new tax system, if the employees do not choose any option. However, even after this, the facility to choose the option will be available while filing the return.
What are the reliefs available under the new tax regime?
Tax relief is given under section 87A of the Income Tax Act Is. Under this, from April 01, 2023, in the new tax regime, such taxpayers will get a relief of Rs 25 thousand, whose taxable income does not exceed Rs 7 lakh. On the other hand, taxpayers with taxable income up to Rs 5 lakh under the old tax regime will get a relief of Rs 12,500.
If you have more questions about the new tax regime, you can consult the official website of the Income Tax Department. You can find the answer by visiting the website. Questions and answers are available on the Income Tax Department’s website in the form of FAQs on all topics related to income tax including new tax regime, old tax regime.
Read this also: Leave the job on your own and get a year’s salary, offer of these big companies amidst retrenchment
Be the first to read breaking news in Hindi aajsamacharindia.com| Today’s latest news, live news updates, read most reliable Hindi news website aajsamacharindia.com|
Like us on Facebook or follow us on Twitter for breaking news and live news updates.