People are confused about whether or not to go for the brand new regime or not.
The new tax regime applies to all taxpayers, together with people, Hindu Undivided Families (HUFs) and Association of Persons (AOPs).
The Union Finance Minister Nirmala Sitaraman lately introduced the introduction of the brand new tax regime within the Interim Budget session. As per the announcement, the contemporary regime was slated to start from April 1.
It has been launched with altered tax slabs and concessional tax charges. The new tax regime applies to all taxpayers, together with people, Hindu Undivided Families (HUFs), and Association of Persons (AOPs).
Meanwhile, many individuals are present process a dilemma about whether or not they are going to profit by switching to the brand new tax regime or not. However, the brand new tax regime has its advantages and a set of tax deductions that may be opted by deciding on it. These deductions will profit the taxpayers by saving lakhs of rupees. Let us check out among the such tax exemptions below the brand new tax regime.
As per the brand new regime, there’s a provision for taxpayers who fall into the disabled class can take a separate exemption. If such taxpayers get any transport allowance, then they will declare earnings tax exemption on it. It applies to each personal and authorities sector workers.
Apart from that, workers who’ve been transferred or despatched on a tour at any firm’s expense can declare earnings tax exemptions. Additionally, the allowances and facility expenses offered by the corporate to its workers could be claimed by the taxpayer.
In the brand new tax regime, the earnings tax is not going to be charged on the quantity of gratuity and depart encashment below Section 10 (10C) of Income Tax. Although the tax exemption on residence loans was accessible within the previous regime, now with Section 24, the exemption could be availed. However, there are some phrases and situations to it.
Apart from this, the brand new regime additionally brings a shock deduction for the taxpayers which is on the presents acquired in anybody monetary yr. However, it requires a set quantity which is as much as Rs 50,000.
Another such exemption is for the taxpayers who earn via household pension. Under Section 57 of Income Tax, the quantity of such household pension is out of the scope of the taxation even within the new regime.
