Income Tax Slab: If a person’s annual income is less than Rs 7 lakh, then he can choose the new tax regime. In such a situation, he will not have to file any tax. At the same time, the benefit of standard deduction of Rs 50,000 is also available in the new tax regime. In such a situation, people with salary income will not have to file any tax till the annual income of Rs 7.5 lakh.
Income Tax Return: It is very important to keep many important things in mind while filing income tax for the financial year 2022-23. Actually, many important announcements were made in the budget this year regarding income tax. The biggest announcement among these was that now no tax will have to be paid on annual income of Rs 7 lakh on filing tax under the new tax regime.
On the other hand, if no tax has to be paid on income up to five lakh rupees annually due to rebate in the old tax regime, but exemption can be obtained on investment in the old tax regime, whereas in the new tax regime, investment cannot be exempted. In such a situation, people are quite confused whether to choose the new tax regime or choose the old tax regime. Let’s understand…
Income tax
If a person’s annual income is less than Rs 7 lakh, then he can choose the new tax regime. In such a situation, he will not have to file any tax. At the same time, the benefit of standard deduction of Rs 50,000 is also available in the new tax regime. In such a situation, people with salary income will not have to file any tax till the annual income of Rs 7.5 lakh.
Tax Exemptions
While also for high income earners, the new tax regime can be useful for taxpayers who cannot claim substantial exemptions as they invest or invest to maximize the benefits under Section 80C/Section 80D. cannot afford or because they do not have a home loan or are not living on rent.
Old Tax Regime
If you earn around 40% of your annual income or ₹ 4.5 lakh (whichever is less) between Section 80C, Section 80D, House Rent, Home Loan as well as any other exemptions allowed (under the old tax regime) you can opt for the old tax regime.
