Income Tax Comparison: The new budget was presented on 1 February. In this, Finance Minister Nirmala Sitharaman had talked about making income up to Rs 7 lakh tax free, but till now people have not understood how it can be taken advantage of, so let us know in simple language how You can take advantage of this.
Income Tax Slabs: For the last few years, the government has implemented the new tax regime and the old tax regime. In such a situation, people find it very difficult to understand because on the one hand it is being said that interest will have to be paid at the rate of 5 per cent on income of Rs 3 lakh to Rs 6 lakh.
At the same time, it is also being said that no tax will have to be paid on the income of Rs 7 lakh. In such a situation, if you are also not able to understand this hassle of tax, then today we will tell you in very simple words, how the income of 7 lakh 50 thousand rupees can be made tax free.
No tax for salaried class up to Rs 7.50 lakh
Under the new tax regime, no tax is going to be levied on an annual income of ₹ 7.5 lakh. This claim has been made by Clear’s MD and CEO Archit Gupta. He says that those who are salaried can avail the standard deduction of ₹50,000. In this way, people having a total income of Rs 7 lakh 50 thousand will not have to pay any tax. Let us tell you that normal tax benefits like HRA, LTA etc. cannot be claimed in the new tax regime.
Exemption increased in new tax regime
For the financial year 2023-24, the government has increased the tax exemption available. Now in the new tax system, income up to Rs 7 lakh has been made tax free under section 87A, that is, now this exemption has been increased to Rs 25 thousand.
Advantage or disadvantage in the old tax system?
People who can invest and are spending in the form of insurance, school fees or home loan. The old tax regime can be beneficial for them. At the same time, both the tax systems have their own advantages and disadvantages. In such a situation, you should choose the new or old regime according to your need.
