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Q.1. What is 'New Regime'? Ans. New regime provides for concessional tax rates and liberal slabs. However, nodeductions are allowed in the new regime (other than those specified for e.g. 80JJAA, 80M,standard deduction). Q.2. What are the tax slabs in earlier new regime? Ans. The Finance (No.2)
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The new tax regime offers concessional tax rates and liberal slabs, with limited deductions allowed. It is the default regime for individual taxpayers.
In the proposed new tax regime, individual taxpayers can have a total income of up to Rs. 12 lakhs and still have a NIL tax liability, provided they file their return.
Marginal relief ensures that individuals with income just above Rs. 12 lakhs pay tax only on the amount exceeding Rs. 12 lakhs, preventing a sharp increase in tax liability.
Yes, a standard deduction of Rs. 75,000 is available for salaried taxpayers in the new regime. This means a salaried individual with an income up to Rs. 12,75,000 might not pay any tax.
The changes in tax slabs and rates in the new regime are beneficial for individuals, Hindu undivided families, associations of persons, bodies of individuals, and artificial juridical persons.
Rebate is a deduction from tax for incomes up to Rs. 12 lakhs in the new regime. Marginal relief is for those with incomes slightly above Rs. 12 lakhs, ensuring their tax payable is only the excess income over Rs. 12 lakhs.
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