New Delhi, March 30 (IANS). There is less than 48 hours left for the new financial year to start. Along with this, many rules related to income tax are going to change.
Several important announcements were made by Finance Minister Nirmala Sitharaman in the General Budget 2025, which are being implemented from April 1, which will directly affect the pockets of the people receiving the salary.
These new rules include changes in income tax ranging in income tax to TDS rules.
The exemption in income tax increased by the Finance Minister under the new tax regime in the budget is coming into effect from April 1. Now people with annual income of up to Rs 12 lakh will come under the purview of income tax exemption. Earlier this figure was at Rs 7 lakh.
Apart from this, if the standard deduction exemption of Rs 75,000 for people receiving salary is received, then income tax exemption increases to Rs 12.75 lakh.
However, capital gains have not been included in the income tax exemption. It will be taxed separately.
The government has also introduced new tax slabs under the new tax regime, while no changes have been made in the old tax regime.
Now under the new tax regime, there will be income tax-free of up to Rs 4 lakh, while income between Rs 4 lakh and Rs 8 lakh will be charged 5 percent tax. With the increase in income, tax rates will gradually increase and it will reach 30 percent on more than Rs 24 lakh.
The central government has increased the tax exemption received under section 87A in the budget from Rs 25,000 to Rs 60,000, which will make an income tax-free of up to Rs 12 lakh in the new tax regime.
The TDS deduction limit on the interest received on bank deposits has been increased from Rs 40,000 to Rs 50,000. This means that no TDS will be deducted on the amount up to Rs 50,000 received on the bank deposit.
The benefits and allowances provided by employers from April 1 will no longer be classified as taxable facilities.
Additionally, if an employer bears the cost of medical treatment abroad for an employee or his family, this expenditure will not be considered taxable benefits.
Texpears will now have four years instead of two to file updated Income Tax Return (ITR-U). This expansion allows individuals to rectify errors or omissions in their tax filing for a long time.
A new tax-saving option has been introduced for parents. Those who contribute to their child’s NPS Vatsalya account can claim an additional deduction of Rs 50,000 under the old tax system.
-IANS
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