New Delhi April 01
Starting April 1, 2024, India has introduced new income tax regulations set to impact taxpayers significantly. Here’s a breakdown of the key amendments:
- Default Tax Regime:
The new tax regime becomes the default choice for taxpayers starting from the fiscal year 2023-24. Individuals are now required to opt between the old and new tax regimes. The latter promises simplified tax planning and numerous advantages.
- Modified Income Tax Slabs:
The revised income tax slabs under the new regime are as follows:
- Up to ₹3,00,000: 0%
- ₹3,00,001 to ₹6,00,000: 5%
- ₹6,00,001 to ₹9,00,000: 10%
- ₹9,00,001 to ₹12,00,000: 15%
- ₹12,00,001 to ₹15,00,001: 20%
- Above ₹15,00,000: 30%
- Advantages of the New Regime:
The new regime brings forth several benefits:
- Simplified Tax Planning: Eliminates the need to maintain records of travel tickets or rent receipts.
- Increased Exemption Limit: Basic exemption elevated from 2.5 lakhs to 3 lakhs.
- Reduced Surcharge Rate: Surcharge for those earning over ₹5 Crores is slashed from 37% to 25%.
- Rebate Limit Enhancement:
The rebate limit has been enhanced under the new regime. If the taxable income is ≤ 7 lakhs, the rebate limit now stands at ₹25,000 (previously ₹12,500 under the old regime).
Stay informed and adjust your financial strategies accordingly to optimize your tax planning in light of these changes.
