The facility of filing ITR has started, but many employed people are not able to understand whether they should go to the new tax regime or the old one. In last year’s budget, the new tax regime has been made the default option.
As soon as the new financial year starts, filing of Income Tax Returns has started. The Income Tax Department itself tweeted that this is the first time that taxpayers have got the facility to pay taxes from the first day of the financial year. This tweet was made on April 4, in which it was written that till now 23 thousand ITRs have been filed for the assessment year 2024-25. The facility of filing ITR has started, but many employed people are not able to understand whether they should go to the new tax regime or the old one. In last year’s budget, the new tax regime has been made the default option. That is, the person who has not informed his employer about choosing the tax regime will be taxed as per the new tax regime. Let us know which people should shift to the new tax regime and why.
First know what is the new tax regime
Under the new tax regime for the financial year 2023-24, there will be no tax on income up to Rs 3 lakh. Whereas income up to Rs 3-6 lakh will be taxed at 5 percent. You will have to pay 10 percent tax on income of Rs 6-9 lakh. Income of Rs 9-12 lakh will be taxed at 15 percent. You will have to pay 20 percent tax on income of Rs 12 to 15 lakh. You will have to pay 30 percent tax on income above Rs 15 lakh.
You get these 3 deductions
The tax rate under the new tax regime is very low, but very few deductions are available. Only 3 deductions are available in the new tax regime.
1- The first is standard deduction, under which employed people get tax exemption up to Rs 50 thousand.
2- The second deduction is the investment made in corporate NPS under 80CCD(2). Under this, employees of private companies can invest up to 10 percent of their basic salary and dearness allowance in NPS and you will get tax exemption on it. Whereas if you are a government employee then this figure can be up to 14 percent for you.
3- Apart from this, the third deduction is made in Agneepath Scheme under 80CCH. In this, whatever money is invested by the employee or the government in Agniveer Corpus Fund, it is tax free.
Who should shift to the new tax regime?
If you do not make many investments and are not availing facilities like savings-investment, insurance, medical, NPS etc. under the old tax regime, then the new tax system is better for you. Also, if you do not pay rent and your home loan is not in service, the new tax regime will be better for you. In the old tax regime, tax exemption is available on all these things up to a certain limit, due to which it seems attractive, but if you do not take tax benefit on those things, then you will benefit by coming to the new tax regime and the income tax will be much less. It will take.
