Interest on Electric vehicle loan – 80EEBĭonation to Political party/trust etc – 80G Interest on Home Loan u/s 24b on let-out propertyĭeduction u/s 80C (EPF|LIC|ELSS|PPF|FD|Children’s tuition fee etc) Interest on Home Loan u/s 24b on slef-occupied or vacant property Other allowances including food allowance of Rs 50/meal subject to 2 meals a dayĮntertainment Allowance Deduction and Professional Tax In all there are 70 deductions & exemptions that are not allowed, out of which the most commonly used are listed below: Particulars The taxpayer opting for concessional rates in the New Tax regime will have to forgo certain exemptions and deductions available in the existing old tax regime. Additional Health and Education cess at the rate of 4% will be added to the income tax liability + surcharge in all cases.The surcharge rate for an Association of Persons (AOP) consisting entirely of companies will also be limited to 15%. From Assessment Year 2023-24, the maximum surcharge rate on tax payable for dividend income or capital gain mentioned in Section 112 will be 15%.Therefore, the highest surcharge rate on the tax payable for such incomes will be 15%. Surcharge rates of 25% or 37%, will not be applicable to the income which is taxable under sections 111A (Short Term Capital Gain on Shares), 112A (Long Term Capital Gain on Shares), and 115AD (Tax on income of Foreign Institutional Investors).* In Budget 2023, the highest surcharge rate of 37% has been reduced to 25% under the new tax regime. 37% of Income tax if total income > Rs.5 crore.25% of Income tax if total income > Rs.2 crore.15% of Income tax if total income > Rs.1 crore.10% of Income tax if total income > Rs.50 lakh.Surcharge: In case the income exceeds a certain threshold, surcharge will be applicable.*In Budget 2023, rebate under new regime has been increased and therefore, income upto Rs 7 lakh will be tax-free from FY 2023-24. tax liability will be NIL in both – New and old/existing tax regimes. Individuals with Net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A i.e.Individuals, Senior citizens and Super senior citizens. Please note that the tax rates in the New tax regime is the same for all categories of Individuals, i.e.Important points to note if you select the new tax regime: senior citizens and super senior citizens, the Income tax limit for availing the exemption would be Rs 3,00,000 & Rs 5,00,000 respectively. *Please note that Rohit is an individual taxpayer assessee having an income tax exemption of Rs 2,50,000. Rohit wants to know his tax dues for FY 2022-23 (AY 2023-2024). Deductions under section 80 have also been reduced. This income has been calculated by including income from all sources such as salary, rental income, and interest income. Rohit has a total taxable income of Rs 8,00,000. How to Calculate Income Tax from Income Tax Slabs? Revised Income Tax Slab Rate FY 2023-24 (AY 2024-25) – For New Regime Income Slabs Section 80G - Donations Eligible Under Section 80G and 80GGA - 80G Exemption ListĬomparison of tax rates under New tax regime & Old tax regime for FY 2022-23 (AY 2023-24).Budget 2023 Expectations For Income Tax: 80C & 80D Limit Increase, Tax Slab Changes For Salaried Employees.ITR U – What is ITR-U Form and How to File ITR-U.Income Tax Raid, Search and Seizure – What, When, How.
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