New Tax Rules from April 1, 2024: Key Changes
SjhaNew Tax Rules from April 1, 2024: Key Changes
With the start of the new fiscal year (FY 2024-25), several noteworthy changes in income tax rules will be implemented. Let’s delve into the key modifications:
Income Tax Slabs:
- The revised tax slab applies to the new tax regime. Here are the updated tax rates:
- Income 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 ₹15,00,000: 20%
- Above ₹15,00,000: 30%1.
- The revised tax slab applies to the new tax regime. Here are the updated tax rates:
Advantages of the New Tax Regime:
- Simplified Tax Planning: Taxpayers no longer need to maintain records of travel tickets and rent receipts.
- Increased Basic Exemption Limit: The basic exemption limit has been elevated from ₹2.5 lakhs to ₹3 lakhs, making the new tax regime more appealing.
- Reduced Surcharge Rate: For individuals with income exceeding ₹5 Crores, the surcharge rate has decreased from 37% to 25%1.
Rebate Limit:
- Under the new tax regime, the applicable rebate limit has increased. If your taxable income is less than or equal to ₹7 lakhs, the rebate limit is now ₹25,000 (compared to ₹12,500 under the old tax regime)1.
In summary, these changes aim to simplify tax planning, enhance exemptions, and provide relief to taxpayers. Remember that the highest tax rate remains at 30% for income exceeding ₹15 lakhs1.
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