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Income tax under new regime

04 March 2024

If one's taxable salary income comes around ₹ 692000/-after allowing Std.Dedn of ₹50000/-, is he liable to pay income tax as per the respective slabs under new tax regime, though his total income is below the limit of ₹700000/-. Please clarify. Thanks.

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12 Replies

Yasaswi Gomes new (Finance ) (4514 Points)
Replied 04 March 2024

Gross income/CTC=all allowances+Special allowance

Less standard deductions will give taxable income

if taxable income is below 3 lakhs then no tax liability. anything above it will be taxed like your pay.

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Yasaswi Gomes new (Finance ) (4514 Points)
Replied 04 March 2024

forgot to mention, TDS 192b is also applicable here

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 04 March 2024

@ Subbiah Mathurappan,

No Tax Liability arises..
You can declare the ITR without Tax liability...

Good LUCK...

sabyasachi mukherjee (27574 Points)
Replied 04 March 2024

Income tax under new tax regime

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 04 March 2024

Originally posted by : sabyasachi mukherjee
	Income tax under new tax regime

Kammanaatti...

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 05 March 2024

No tax liability is there as your income is below 7 lakhs. Standard Deduction of 50000/- is allowed in new regime also.

sabyasachi mukherjee (27574 Points)
Replied 05 March 2024

Has he opted for tge procedures laud diwn in Sec 115 BAC

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 05 March 2024

Can You give with Details MY DEAR GREAT MR SABYASACHI MUKHERJEE SAAAAREY...

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 05 March 2024

What is this??? @ sabyasachi mukherjee

Yasaswi Gomes new (Finance ) (4514 Points)
Replied 05 March 2024

Section 115BAC of the Income Tax Act introduces a new tax regime that allows individuals and Hindu Undivided Families (HUFs) to pay income tax at lower rates.

Certainly! Let’s compare the new tax regime introduced by Section 115BAC with the existing tax regime. Here’s a side-by-side comparison:

New Tax Regime (Section 115BAC):
- Default Option: The new regime is now the default choice for taxpayers.
- Tax Rebate: Income up to ₹7 lakhs is eligible for a tax rebate, meaning no tax is payable for this income range.
- Revised Tax Slabs:
  - Up to ₹3 lakh: Nil
  - ₹3 lakh to ₹6 lakh: 5%
  - ₹6 lakh to ₹9 lakh: 10%
  - ₹9 lakh to ₹12 lakh: 15%
  - ₹12 lakh to ₹15 lakh: 20%
  - Above ₹15 lakh: 30%
- Standard Deduction: The standard deduction of ₹50,000 applies.
- Fewer Deductions/Exemptions: The new regime does not allow 70+ deductions and exemptions.
- Reduced Surcharge: The highest surcharge rate has been reduced from 37% to 25% for taxpayers earning more than ₹5 crore.
Existing Tax Regime:
- Allows various deductions and exemptions.
- Tax rates are different, with higher rates for certain income brackets.
- Surcharge rates may vary based on income levels.

Considerations:

Choose Wisely: Taxpayers can opt for either regime based on their individual circumstances.
Evaluate Deductions: If you have significant deductions/exemptions, the existing regime might be more beneficial.
Simplicity vs. Savings: The new regime offers simplicity but may not always result in the lowest tax liability.

Remember to consult a tax professional or use online tax calculators to determine which regime suits you best based on your income, deductions, and financial goals. 📊💰

Thats why I said Tax principles written are skewed. But Tax Bracket calculations still exist and from

Total tax liability arisen-Tax rebate upto 7 lakhs.