New system of income tax: The government had introduced a new system for income tax in the country in the year 2020. Do you know that you can save tax even in this new tax regime.
There is no exemption on savings: The government has stopped giving exemption on any kind of savings in the new tax regime. The reason for this is to put more money in the hands of people and increase demand in the economy.
Now you get the benefit of deduction: Now the government has started providing the facility of standard deduction of Rs 50,000 in the new tax system also. Earlier it was present only in the old tax regime.
Income of Rs 7.5 lakh is tax-free: After adding the benefit of standard deduction in the new tax regime, now people’s income up to Rs 7.5 lakh has become tax-free. However, tax exemption is not available on any other savings in this system.
Family pensioners also benefit: The government has also given the benefit of standard deduction to family pensioners under the new tax regime in 2023. Now people can avail tax exemption on Rs 15,000 or one-third of the pension, whichever is less.
Extra exemption for salaried people: In the new tax system, an extra exemption has been given to the salaried class. They get tax exemption on their employer’s contribution to NPS.
New tax regime made default: Through the budget presented in the year 2023, the government has made the new tax regime the default. In such a situation, those who do not choose the old tax regime will have to pay income tax according to the new system.
