Income Tax Slab: In the new tax regime, the basic exemption limit has been increased to Rs 3 lakh, which was earlier Rs 2.5 lakh. Also, there is tax exemption on income up to Rs 7 lakh, which was earlier Rs 5 lakh under section 87A.
ITR Login: Filing of income tax return is necessary for people having taxable income. Whereas in India, taxes can be filed in two ways. Under this there is a new income tax regime and there is an old income tax regime. However, both the old and the new systems have different advantages and disadvantages.
In such a situation, it becomes cumbersome for taxpayers to choose the most suitable tax regime. However, there is definitely a good news for the people filing taxes that people can choose any tax regime according to their choice and according to their income.
Income Tax
Based on the amendments proposed in the Union Budget 2023, the new tax regime has been made the default tax regime and taxpayers will have to opt for it if they want to use it. At the same time, in order to promote the new income tax system and make it more pleasant for the common man of the middle class, the government has announced important changes in the new income tax system.
Income tax regime
In the new tax regime, the basic exemption limit has been increased to Rs 3 lakh, which was earlier Rs 2.5 lakh. Also, there is tax exemption on income up to Rs 7 lakh, which was earlier Rs 5 lakh under section 87A. It is to be noted here that in the old tax regime various allowances forming part of salary (like HRA, LTA, etc.) and Public Provident Fund (PPF), National Pension Scheme (NPS) repayment of housing loan, payment of tuition fee etc. There is ample room for claiming deduction against specified investments/expenses.
Tax Regime
On the other hand, the new tax regime has the benefit of standard deduction and full exemption has been provided to individuals earning up to Rs 7 lakh annually. Therefore, individuals earning annual income above Rs 7 lakh will have to choose judiciously between the new and old tax regimes. Since, in the old tax system, income up to Rs 5 lakh is exempted.
