Know About How To Save Taxes In New Tax Regime

New Tax Regime Deductions

If one earns income from salary or business, then it is time to get ready to file the income tax return (ITR Filing for FY23-24).

Features of New Tax Regime

One must be aware that the new tax regime has now become the default option after Budget 2023. Therefore, one must manually select the option to choose the old tax regime, then your ITR will be filed in the new tax regime only.

Exemptions in the New Tax Regime

While earlier there was no provision for standard deduction in the new tax regime, after Budget 2023, now a rebate of Rs 50,000 is available in this regime, no matter which tax slab the taxpayer comes under. 

Voluntary Retirement Scheme (VRS) -

In VRS, tax exemption is also available on gratuity and leave encashment with certain conditions.

New Tax Regime Income Tax Slabs

In the new tax regime, there is no tax on annual salary of Rs 0-3 lakh. After this, 5% tax is levied on income of Rs 3 to 6 lakh, 10% on income of Rs 6 to 9 lakh. 

Employed People 

Employed people also get exemptions on the perks or allowances they get for travel, transport, conveyance, and office work.

Compiled by Syed Muskan