India Tax

📌 IMPORTANT DEDUCTIONS & EXEMPTIONS

UNDER NEW TAX REGIME

✅ Allowed Deductions & Exemptions

1️⃣ Standard Deduction
• ₹75,000
• Available for:
• Salaried employees
• Regular pensioners

⸻

2️⃣ NPS – Employer Contribution

Section 80CCD(2)
• Deduction up to 14% of salary (Basic + DA)
• Allowed for all employees under the New Tax Regime

⸻

3️⃣ Family Pension
• Deduction = Lower of:
• ₹25,000 OR
• 1/3rd of family pension received

⸻

4️⃣ Employer-Provided Tax-Free Benefits
• Gratuity: up to ₹20 lakh (lifetime)
• Leave encashment: up to ₹25 lakh
• VRS compensation: up to ₹5 lakh
• Mobile, internet, uniform & work travel:
• Tax-free only if used for official purposes

⸻

5️⃣ Home & Housing Loan Provisions
• Principal repayment (80C): ❌ Not allowed
• Interest on self-occupied house: ❌ Not allowed
• Interest on let-out house:
• Allowed only against house-property income
• ❌ No set-off against salary or other income

⸻

6️⃣ Capital Gains Benefits (Continue as usual)
• Section 54:
• Sale of residential house → reinvest in another house
• Section 54EC:
• Invest in specified bonds (NHAI / REC) up to ₹50 lakh
• Section 54F:
• Sale of any long-term asset → invest in residential house
• Special tax rates under Sections 111A & 112A continue

⸻

7️⃣ Employer / Policy Benefits That Remain Tax-Free
• Employer contribution to:
• PF / NPS / Superannuation
• Overall cap: ₹7.5 lakh per annum
• Life insurance payout on death of insured person

⸻

❌ Not Allowed Under New Tax Regime
• Section 80C:
• PF, PPF, ELSS, LIC, Sukanya Samriddhi
• Tuition fees
• Section 80D: Health insurance
• Section 80E: Education loan interest
• HRA & LTA
• Donations (80G)
• Home loan interest (self-occupied)
• Interest on savings (80TTA / 80TTB)
• Food coupons / Meal cards
• Employee’s own NPS contribution
• (80CCD(1) & 80CCD(1B))

⸻

🔑 Key Takeaway

✔️ New Tax Regime allows limited but important deductions, mainly:
• Standard deduction
• Employer NPS contribution
• Certain employer benefits & capital gains exemptions

❌ Most popular investment-based deductions are not available.

India Tax We offer expert taxation & related services, tailoring strategies for individuals and businesses.

Happy Diwali 🪔

Shubho Mahalaya 🙏🙏

Tax structure under new regime

1. Effectively zero tax payable by individuals^
having income* upto Rs 12 lakhs (rebate of
Rs 60,000 can be claimed under 87A)

2. Tax deduction limit for senior citizens
doubled from Rs 50,000 to Rs 1 lakh.

3. The annual limit of Rs 2.4 lakh for TDS on
rent increased to Rs 6 lakh.

4. Tax payers allowed to claim annual value
of two self occupied properties without any
conditions (as compared to previously one).

The Indian government's Union Budget 2024 has introduced several significant changes to the income tax framework, effective from April 1, 2024. These modifications are designed to simplify the tax system and provide relief to taxpayers. Here's a concise overview of the key updates:

**Revised Income Tax Slabs under the New Tax Regime:**

- **Income up to ₹3 lakh:** No tax
- **₹3 lakh to ₹7 lakh:** 5%
- **₹7 lakh to ₹10 lakh:** 10%
- **₹10 lakh to ₹12 lakh:** 15%
- **₹12 lakh to ₹15 lakh:** 20%
- **Above ₹15 lakh:** 30%

These adjustments aim to reduce the tax burden on individuals, especially those in lower income brackets.

**Standard Deduction Enhancement:**

The standard deduction for salaried individuals and pensioners has been increased from ₹50,000 to ₹75,000, providing additional relief.

**Tax Rebate under Section 87A:**

The rebate under Section 87A has been raised, ensuring that individuals with an income up to ₹7 lakh will not have any tax liability.

**Default Tax Regime:**

The new tax regime is now the default system. Taxpayers wishing to continue with the old regime, which offers various exemptions and deductions, must actively opt for it.

**Additional Disclosures in ITR Forms:**

Taxpayers are now required to provide more detailed information in their Income Tax Return (ITR) forms, including specifics about donations to political parties, details of high-value life insurance policies, and information related to virtual digital assets.

**Implications for Tax Planning:**

With these changes, individuals should reassess their tax planning strategies. The increased standard deduction and revised tax slabs may make the new tax regime more beneficial for many, but it's essential to evaluate personal financial situations to make informed decisions.

These updates reflect the government's commitment to simplifying the tax system and providing relief to taxpayers, encouraging compliance and transparency in financial matters.

GST आने के 7 साल बाद आखिर GST Tribunal बनने वाला है अब, सरकार ने GST Tribunal के President को Appoint कर दिया है ।

Wishing you all a very happy holi.

Kare to kare kya😆😆

😄😄😄