As per the new income tax regime for FY 2023-24 (AY 2024-25), the rebate under Section 87A has been increased from Rs. 5 lakhs to Rs. 7 lakhs. Thus, individuals with a net taxable income of up to Rs. 7 lakh can avail tax rebate u/s 87A under the new tax regime. Those who...
Thus Section 89 under the Income Tax Act has been incorporated by the Government which comes as a benefit in this context as this law permits thetax deductionfor the other tax burden on the employees obtaining the salary arrears. As per section 89(1), the tax deduction/relief has been furn...
Income: 50 Lakhs Conclusion on How Income Tax is Calculated on Salary Mastering the art of income tax calculation on salary is pivotal for financial planning. Income Tax Calculator acts as a guiding light through the intricate maze, empowering individuals to make informed decisions, optimize tax sa...
Tax on EPF, VPF Contribution above 2.5, 5 lakhs The interest on any contribution above Rs. 2.5 lakh by an employee to a recognized provident fund is taxable effective from 1st April 2021. This means that a person contributing up to Rs 20,833 a month to PF i.e has a basic salary of ...
Above Rs. 15 Lakhs 30% Deduction/Exemption Allowed Under Both Regimes If you have invested in saving schemes or incurred any expenses, they are eligible for deductions. So, before paying taxes, you can deduct these investments from your gross taxable income to reduce your tax liability. ...
Want to know your TDS and take home Salary.Try our calculator in Tools for accurate results. Rebate limit under the New Tax Regime increased to Rs. 7 lakhs w.e.f. FY 2023-24 28% GST is applicable on Online Gaming w.e.f 1st October 2023 ...
However, if the ITR is filed after the statutory deadline, an interest of 1% per month on unpaid tax will be liable. In case of late filing, according to section 234F of the Income Tax Act, a late fee of Rs.5000/—shall be charged if net taxable income exceeds Rs.5 lakhs for the...
For example, Shyam has a salary of 7.5 lakhs and he takes a deduction of 1.25 lakhs then using both old and new tax system tax is the same.But If Shyam claims tax deductions less than 1.25 lakh say 1 lakh. Then under the old regime, the tax is Rs 44,200 and the new regime is ...
Understanding which tax regime is beneficial for you depends on your income composition and other financial factors. People with net taxable incomes of less than or equal to Rs. 7 lakhs qualify for a tax rebate under Section 87A, meaning they have no tax obligations under the new tax regime...
Enhancement of standard deduction for the salaried class and tax exemption for all taxpayers deriving income upto INR 5 lakhs a year will provide some relief to the middle class. The budget also has a range of provisions that factor economic support for the small farmers/marginalised sections. ...