ITR Filing: All You Need to Know About New Changes Under New Tax Regime

Outlook Money

All taxpayers have been impacted by significant changes to the income tax system for FY 2023–24 which aims to streamline filing procedures and modify tax obligations in light of new slabs and deductions

Default Regime

The new tax regime is the default now, thus simplifying tax calculations for employers who must use this unless taxpayers actively opt for the old regime.

Raising Taxable Income Limit

There is a rebate of Rs 25,000 for incomes up to Rs 7 lakh, thus making incomes up to this threshold tax-free, thereby easing the tax burden for middle-income earners, while promoting compliance.

Change In Tax Slabs

In order to provide equitable taxation across income groups and improve revenue production, the new regime contains six tax slabs, ranging from 0-30 per cent, for incomes below Rs 3 lakh to above Rs 15 lakh.

Standard Deduction Introduced

A standard deduction of Rs 50,000 is now available under the new tax regime, aimed at reducing taxable income directly, and simplifying tax planning for taxpayers.

Reduced Levy of Surcharge

The peak surcharge rate has been reduced from 37 per cent to 25 per cent, thus lowering the overall tax rate for high-income individuals to 39 per cent, thereby fostering investment and maintaining progressive taxation principles.

Compiled By Manas Malhotra