New tax regime: A salaried taxpayer can claim a maximum of  ₹50,000 standard deduction in one financial year.

New income tax regime: How ₹7.50 lakh annual income is non-taxable — explained

New tax regime: In the Union Budget 2023, Finance Minister Nirmala Sitharaman made some changes to the new income tax regime to make it more attractive for a taxpayer who will file an income tax return (ITR) during the year. 2023-24 financial year. Effective April 1, 2023, the benefit of Section 87A has been extended to the new tax regime and taxpayers opting into the new tax regime in FY24 will be able to claim a tax refund of up to 12,500 in a fiscal year or assessment year. However, those opting for a new tax regime will have to leave various refunds such as HRA, LTA, Section 80C, Section 80CCD, etc. However, if the taxpayer is an employee, then in this case the taxpayer can claim a standard deduction. until 50,000. therefore, in this case, for a salaried person, an annual income of up to 7.50 lakh is not taxable and should be kept while depositing the ITR.

Speaking on the new income tax regime, Pankaj Mathpal, MD and CEO of Optima Money Managers, said: “The benefit of Section 87A was previously limited to old tax system only, but from next fiscal year this benefit will also be available for the new tax regime. Therefore, until An annual income of 7 lakh in a single financial year will also be non-taxable under the new tax regime.”

However, in the case of a salaried taxpayer, there is an additional standard deduction of up to 50,000 per year available. Thus, if the taxpayer is an employee and his annual income is 7.5 lakh or less, he or she can claim a standard deduction of up to 50,000 and avoid any outflow of income tax.

About how we are Annual income of 7.5 lakh is not taxable under the new tax regime, said Archit Gupta, MD and CEO of Clear, “Those WHO are employees, can claim a flat-rate deduction of 50,000. Consequently, salaried persons whose total income does not exceed 7.50,000 will pay zero tax by opting for the new regime. These taxpayers will then not be able to claim the usual tax benefits such as HRA, LTA, etc.

“Income tax payers may claim exemptions in accordance with Article 10(15), including exemption up to 3,500 and 7,000 for interest received from the Postal Savings Account, in the case of individual and joint accounts. They can also avail themselves of other u/s 10(15) exemptions like interest received on certificates of deposit issued under the Gold Monetization Program, 2015,” said Vivek Jalan, Partner at Tax Connect Advisory.

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