FAQs: Authorities Solutions Your Questions On New Earnings Tax Regime
New Delhi:
The federal government immediately lower private revenue tax charges for some sections of taxpayers in a bid to spice up consumption. At the moment, underneath the system launched in 2020, annual revenue of as much as Rs 15 lakh is taxed at a fee between 5 per 20 per cent, whereas revenue of greater than Rs 15 lakh is taxed at 30 per cent.
Below the brand new revenue tax slabs, Finance Minister Nirmala Sitharaman introduced that annual revenue as much as Rs 12 lakh will not be taxed.
Listed here are the often requested questions (FAQs) launched by the federal government:
What’s the new regime?
New regime offers for concessional tax charges and liberal slabs. Nonetheless, no deductions are allowed within the new regime (apart from these specified for e.g. 80JJAA, 80M, customary deduction).
What are the tax slabs within the earlier new regime?
As much as Rs 3 lakh – no tax
Rs 3-7 lakh – 5 per cent
Rs 7-10 lakh – 10 per cent
Rs 10-12 lakh – 15 per cent
Rs 12-15 lakh – 20 per cent
Above Rs 15 lakh – 30 per cent
What are the brand new slabs within the proposed new regime launched by Finance Invoice, 2025?
As much as Rs 4 lakh – 0 per cent
Rs 4-8 lakh – 5 per cent
Rs 8 12 lakh – 10 per cent
Rs 12-16 lakh – 15 per cent
Rs 16-20 lakh – 20 per cent
Rs 20-24 lakh – 25 per cent
Above Rs 24 lakh – 30 per cent
What’s the tax profit for various class of taxpayers (0-Rs 24 lakh)
What’s the most complete revenue for which tax legal responsibility for particular person taxpayers is NIL?
Within the proposed new tax regime, the utmost complete revenue for which tax legal responsibility for particular person taxpayers is NIL is Rs 12 lakh.
To say advantage of NIL tax legal responsibility, what are the steps required to be taken?
The advantage of no tax legal responsibility is offered solely within the new tax regime. This new tax regime is the default regime. To avail the advantage of rebate allowable underneath the proposed provisions of the brand new tax regime, solely return is to be filed in any other case no different step is required to be taken.
How will an individual who has an revenue Rs 12 lakh profit from new charges?
Any particular person earlier was required to pay a tax of Rs 80,000 for an revenue of Rs 12 lakh. Now no tax will probably be charged.
Whether or not the restrict of complete revenue for NIL tax funds has elevated on this funds?
Sure, the restrict of complete revenue for no tax funds within the new tax regime has been elevated to Rs 12 lakh on this funds, supplied taxpayers file ITR to avail the rebate.
Is the usual deduction on wage obtainable within the new regime?
Sure, a regular deduction of Rs 75,000 is offered to taxpayers within the new regime. So, a salaried taxpayer won’t be required to pay any tax the place his or her revenue earlier than customary deduction is lower than or equal to Rs 12.75 lakh.
Whether or not customary deduction is offered within the outdated regime?
Customary deduction of Rs. 50,000 is offered within the outdated regime.
What number of taxpayers will profit from the brand new charges and slabs?
Presently, for 2024-25, about 8.75 crore individuals have filed their revenue tax returns. All such individuals who had been paying tax within the new tax regime will profit from the change in charges and slabs.
