Finance minister Nirmala Sitharaman tabled Union Budget 2022-23 in Parliament on February 1. The finance minister didn’t announce any change in private earnings tax slabs and charges in Budget 2022. Thus, with no change within the earnings tax charges and slabs, a person taxpayer will proceed to pay the identical fee of tax relying on the tax regime chosen for FY 2022-23.
Current Income Tax slabs for Individual (resident or non-resident), 60 years or extra however lower than 80 years of age anytime in the course of the earlier yr:
Current Income Tax Slabs for Individual (resident or non-resident) 80 Years of Age or More Anytime During the Previous Year:
Effective from April 1, 2020, a person salaried taxpayer has been given the choice to proceed with the outdated tax regime and avail deductions/tax exemptions such part 80C, 80D deductions, HRA, LTA tax exemptions and so on. or to decide for the brand new tax regime and forgoing roughly 70 deductions and tax exemptions. The new tax regime affords decrease tax charges as in contrast to the outdated tax regime.
Under each earnings tax regimes, a tax rebate of up to Rs 12,500 is on the market to a person taxpayer beneath part 87A of the Income-tax Act, 1961. This would successfully imply that people having internet taxable earnings of up to Rs 5 lakh wouldn’t pay any earnings tax regardless of the tax regime chosen by them.
Another factor to bear in mind is that beneath the outdated tax regime, the fundamental tax exemption restrict for a person taxpayer will depend on their age and residential standing. However, within the new tax regime, the fundamental exemption restrict is Rs 2.5 lakh in a monetary yr.
There are two essential factors to be famous as per the Income Tax Department’s web site:
-The charges of surcharge and well being and schooling cess are identical beneath each the tax regimes (outdated and new).
-Rebate u/s 87 – A Resident Individual whose Total Income is just not greater than Rs 5,00,000 can be eligible for a Rebate of up to 100 per cent of earnings tax or Rs 12,500, whichever is much less. This Rebate is on the market in each tax regimes.
In the Union Budget 2021, the finance minister Nirmala Sitharaman introduced that senior residents above the age of 75 years, who solely have pension and curiosity as a supply of earnings can be exempted from submitting the earnings tax returns. During her price range speech, Sitharaman stated, “In the seventy fifth yr of Independence of our nation, the federal government shall scale back compliance burden on senior residents who’re 75 years of age and above.”
It must be noted that the senior citizens who are above 75 years age, are not exempted from paying tax but only from filing income tax return (ITR) if they are eligible to certain conditions. The exemption from filing income tax returns would be available only in case where the interest income is earned in the same bank where pension is deposited.
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