Income tax: Everything has changed. Tax-related rules change from april 1. Full details are here !!

Many tax-related rules are changing today. If you opt for the new tax system in 2024-25, you can get a standard deduction of Rs.50,000. Through this, income up to Rs 7.50 lakh will be exempted from tax.

Income Tax Rules: Many tax-related regulations are evolving as of right now

The new financial year 2024-25 begins on the first monday of april 1. The beginning of a new financial year is always important in terms of personal finance as most of the budget proposals related to income tax come into effect from this day. Many tax-related rules are changing from april 1.

Tax tier selection is required

If you have been filing your Income Tax Return (ITR) till now under the old tax system, then it is important to know that the new tax system has lapsed in the country from april 1, 2024. Tax slab every year. If he does not do this, he will automatically switch to the new tax system. Many improvements have been made in the new system. The aim is to encourage more taxpayers to opt for it. Income up to Rs 7 lakh is tax-exempt.

Advantages of the standard deduction

If you are employed and opt for the new tax regime in 2024-25, you can get a standard deduction of Rs 50,000. Through this, income up to Rs 7.50 lakh will be exempted from tax. This deduction of Rs.50,000 was earlier only in the old tax bracket.

Annual rates of return

0 to 3 lakh rupees - 0%

Rs 3 to 6 lakhs - 5%

Rs 6 to 9 lakhs - 10%

Rs 9 to 12 lakhs - 15%

Rs 12 to 15 lakhs - 20%

Rs. Above 15 lakhs - 30%

The basic deduction limit is Rs.3 lakh

Under the new tax, the basic exemption limit has been raised from Rs 2.5 lakh to Rs 3 lakh. Additionally, the deduction under Section 87A of the Income Tax Act, 1961 has been increased from Rs.5 lakh to Rs.7 lakh. This means that under the new regime, individuals with taxable income up to Rs 7 lakh will not have to pay tax as they are eligible for full tax exemption.

Money Transfer

If you are a non-government employee, you can get a tax exemption of up to Rs 25 lakh as leave pay instead of Rs 3 lakh. For this, a provision has been made in Section 10(10AA) of the Income Tax Act.

Life insurance

If your insurance policy is issued after april 1, 2023, and your total premium is Rs. 5 lakhs then you have to pay tax as per slab on maturity.

Extra charge

If your annual income is above Rs 5 crore, now you have to pay only a 25 percent surcharge instead of 37 percent.

Other important matters

Individual taxpayers can choose between the old and new tax regimes each year according to their income. Professionals or commercial companies can opt for a one-time slab