Key Points
Some of the prominent changes made in the new tax regime were: Making tax liability zero for individuals with taxable income up to Rs 7 lakh; Increasing the basic tax exemption limit; And making the new regime the default regime..
These are: (i) Standard deduction of Rs 50,000 from salary/pension;(ii) A deduction under Section 80CCD (2) of the Income-tax Act, 1961, for investment made in the National Pension System (NPS) by the individual's employer...
An employer will automatically subtract standard deduction of Rs 50,000 from gross salary income while calculating the net taxable salary/pension income on which tax has to be deducted..
According to income tax laws, if the total contribution made by an employer in a financial year to EPF, NPS and Superannuation fund exceeds Rs 7.5 lakh, the excess amount will be taxed in the employee's hands..
Particulars Amount (In Rs) Gross taxable salary 8,00,000 Less: Standard deduction 50,000 Net taxable salary 7,50,000 Less: Deduction under Section 80CCD (2) Less: Rs 50,000 Net taxable income 7,00,000..
You might be interested in
Budget 2024: Will new income tax regime get standard deduction boost?
26, Jun, 24Budget 2024: Currently, a standard deduction of Rs 50,000 is applicable under both the old and new income tax regime.
How to save income tax in new tax regime? Two deductions that salaried can claim
11, Jan, 24If you are planning to opt for new tax regime in current financial year, then there are two deductions that are allowed under the new tax regime. These deductions are available to salaried individuals. Read on to know more about these two deductions and how it can be claimed while filing income tax return.