New Delhi: The deadline for ITR filing 2024 is today, Wednesday, July 31, 2024. If you have still not filed your income tax return, don’t worry. There’s time until midnight and we have got you covered with respect to the details of the Income Tax filing and the difference between the old and new tax regime. Make it a point to file your ITR before midnight to avoid any late payment charges and penalties. To start with your income tax filing journey, you need to first choose between the old and new tax regime.
All about New Tax Regime
If you plan to file your ITR under the new tax regime for the assessment year 2024-25, then you will have to pay zero tax on income up to Rs 7 lakh!
New Tax Regime u/s 115BAC
Income Tax Slab
Income Tax Rate
Up to ₹ 3,00,000
Nil
₹ 3,00,001 – ₹ 6,00,000
5% above ₹ 3,00,000
₹ 6,00,001 – ₹ 9,00,000
₹ 15,000 + 10% above ₹ 6,00,000
₹ 9,00,001 – ₹ 12,00,000
₹ 45,000 + 15% above ₹ 9,00,000
₹ 12,00,001 – ₹ 15,00,000
₹ 90,000 + 20% above ₹ 12,00,000
Above ₹ 15,00,000
₹ 1,50,000 + 30% above ₹ 15,00,000
To be sure, this new tax regime will only be applicable for AY2024-25. Under the current new tax regime, a Rs 50,000 standard deduction is allowed apart from deductions for the employer’s contribution to NPS. Finance Minister Sitharaman announced in Budget 2023 that under the new tax regime, those earning up to Rs 7 lakh will not have to pay any tax. This takes the effective non-taxable income to 7.50 lakh.
Old Tax Regime income tax slabs
If you plan to file ITR under the old tax regime, the focus will be on savings and you will have ti furnish bills and receipts or proof of all investments and savings made under this regime.
Old Tax Regime
Income Tax Slab
Income Tax Rate
Up to ₹ 2,50,000
Nil
₹ 2,50,001 – ₹ 5,00,000
5% above ₹ 2,50,000
₹ 5,00,001 – ₹ 10,00,000
₹ 12,500 + 20% above ₹ 5,00,000
Above ₹ 10,00,000
₹ 1,12,500 + 30% above ₹ 10,00,000
Taxpayers under the old tax regime will receive a standard deduction of Rs 50,000. Under Section 87A of the I-T Act, income uo to RD 5 lakh is exempted from tax payments. Under this regime, you can claim tax deductions for:
HRA
Investment in government schemes
Interest paid on home loans
Donation to charities
Heath related expenses
With Wednesday, July 31, 2024, being the last day for income tax return filing, first-time taxpayers must know the details of the tax slabs under the old tax regime and the new tax regime of the Income Tax Act. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
