Taxpayers anticipate earnings tax aid, know present slabs below new and previous tax regimes – India TV
Finances 2025: Because the funds approaches, taxpayers are eagerly awaiting a potential earnings tax notification, which is predicted to offer aid to people incomes as much as Rs 15 lakh every year. Here is a breakdown of the present tax bands below the brand new and previous tax techniques that will help you perceive what they imply.
New Tax Plan (FY 2024-25)
Launched in Finances 2020, the New Tax Regime affords decrease tax charges with fewer exemptions and deductions:
- As much as Rs 3,00,000: Nil
- Rs 3,00,001 – Rs 7,00,000: 5 per cent
- Rs 7,00,001 – Rs 10,00,000: 10 per cent
- Rs 10,00,001 – Rs 12,00,000: 15 per cent
- Rs 12,00,001 – Rs 15,00,000: 20 per cent
- Above Rs 15,00,000: 30 per cent
This regime is the present one. Nevertheless, taxpayers should waive the HRA, LTA, and Part 80C and 80D exemptions. Commonplace deduction advantages have been retained, with a cap of Rs 75,000 for salaried staff and Rs 25,000 for household pensioners.
Previous Tax Regime (Monetary 12 months 2024-25)
The previous tax system retains increased charges however permits for tax deductions and exemptions:
- As much as Rs 2,50,000: Nil
- Rs 2,50,001 – Rs 5,00,000: 5 per cent
- Rs 5,00,001 – Rs 10,00,000: 20 per cent
- Above Rs 10,00,000: 30 per cent
The restrict for senior residents (60-80 years) is Rs 3,00,000, whereas for tremendous senior residents (80+ years), it’s Rs 5,00,000.
Key deductions accessible below the previous tax regime:
- Part 80C: Tax saving as much as Rs 1.5 lakh by way of investments like PPF, ELSS, LIC Premium.
- Part 80D: Medical health insurance premium deduction.
- Part 24(b): Curiosity on house loans is diminished as much as Rs 2,00,000.
- HRA and LTA exemptions.
Which tax plan do you have to select?
Your monetary info determines the perfect regime. The brand new tax system fits low-income buyers, whereas the previous tax system advantages taxpayers leveraging deductions and exemptions.
With the funds announcement on February 1, 2025, all eyes are on Finance Minister Nirmala Sitharaman for potential tax reforms.
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