Last Updated: April 13, 2023, 08:38 IST
Income Tax Benefits For Salaried Employees Filing ITR: There are sure deductions that any salaried worker can avail of whereas submitting their revenue tax returns. There are sure deductions like commonplace deduction that are offered to staff in each the outdated and new tax regimes. But some tax advantages is not going to be accessible to staff choosing the brand new tax regime. Before you finalise your tax regime, check out which one is extra useful for you after which decide.
Here are some tax advantages which can be accessible to salaried staff:
Deduction u/s 80C, 80CCC and 80CCD (1):
Employees can get a mixed deduction of Rs 1.5 lakh beneath these sections for funds made in opposition to life insurance coverage premium, provident fund, pension scheme of the central authorities, or annuity plan of LIC or another insurer in the direction of the pension scheme. This deduction is on the market solely beneath the outdated tax regime.
Section 80CCD(2):
Both the outdated and new tax regime supply deduction in the direction of contribution made by an employer to central authorities’s pension scheme. If the employer is a public sector unit, state authorities or different organisation, the deduction restrict is 10 p.c of the wage. If the worker works for the central authorities, the deduction restrict is 14 p.c of the wage.
Home Rent Allowance:
The outdated tax regime additionally permits salaried taxpayers to assert deduction beneath Section 10 (13A) of the Income-tax Act, 1961. The HRA is calculated on the idea of wage, hire paid, metropolis of residence and HRA paid by employer.
Deduction u/s Section 24(b):
Those choosing the outdated tax regime can avail deduction u/s 24(b) for curiosity paid on dwelling loans for self-occupied property. Those selecting the brand new tax regime can avail deduction on curiosity on dwelling loans on rented property.
Standard deduction:
A flat deduction of Rs 50,000 is on the market beneath each tax regimes. Employees can avail the profit whatever the variety of jobs they’ve modified.
Rebate u/s 87A:
Both tax regimes supply rebate u/s 87A if their taxable revenue doesn’t exceed a selected quantity in a monetary 12 months. Under the outdated regime, it’s Rs 5 lakh, whereas it’s Rs 7 lakh within the new tax regime. Those choosing the outdated regime will get Rs 12,500 as rebate. To make the brand new tax regime extra engaging for taxpayers, the central authorities is providing a rebate of Rs 25,000 u/s 87A.
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