Income Tax Latest Update: Important news for income tax payers. If you are also confused about which tax regime you should choose… then there is no need to worry at all.
Finance Minister Nirmala Sitharaman has made major changes in the new tax system in this budget, after which taxpayers are getting the benefit of huge exemption in paying tax. Today we will tell you how you can take advantage of more exemption while paying tax and which tax regime is best for you.
Which tax regime to choose?
At this point, you have the option of choosing the tax regime, whether you choose the new tax regime or the old tax regime. In the new tax system, you will get the benefit of exemption up to 7 lakhs. The new tax system was launched by the government in the year 2020 and in this year’s budget, the Finance Minister has defaulted this tax system, after which you have to be very careful while paying tax.
In the new tax system, these people will not have to pay tax
Talking about the new tax regime, there will be no tax on income up to Rs 3 lakh. Along with this, those earning up to 7 lakhs will get the benefit of tax exemption, after which even those people will not have to pay tax. Along with this, the tax slab has also been reduced.
How many slabs are there in the new tax regime?
₹0 to ₹3 lakh = 0 ₹3 lakh to ₹6 lakh = 5% ₹6 lakh to ₹9 lakh = 10% ₹9 lakh to ₹12 lakh = 15% ₹12 lakh to ₹15 lakh = 20% ₹15 lakh Above = 30%
Apart from this, if we talk about the old tax system, then those earning up to 2.5 lakhs get the benefit of exemption. Apart from this, those with income between 2.5 to 5 lakh have to pay 5% tax, but these people also get the benefit of exemption of up to Rs 12,500. In this, you have to pay tax up to 5%, 20% and 30%. Let us tell you that in the old tax system, you get the benefit of exemption under section 80C, in which you can save tax.
Tax slabs of old tax regime-
Old tax regime (for individual taxpayers below 60 years)
0 to ₹2.5 lakh = 0 ₹2.5 lakh to ₹5 lakh = 5% ₹5 lakh to ₹10 lakh = 20% Above ₹10 lakh = 30%
Find out how much tax you will have to pay with the tax calculator
If you also want to know where you will have to pay less tax while choosing the tax regime, then for this you can take the help of tax calculator. Let us tell you that the Income Tax Department has defaulted the new tax system, after which a calculator has also been issued, so that taxpayers do not face any problem in calculation. From this you can find out how much tax you will have to pay in which tax regime. Let us tell you that you will also find this calculator on the official website of Income Tax.
(PC rights of employees)
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