Quick Summary
India introduced a new income tax regime in the Union Budget 2023. The new income tax regime in India is basically a simplified tax system.The new income tax regime, made the default from FY 2023-24 onwards, continues for FY 2024-25 (AY 2025-26). While it offers lower tax rates, it allows only a lim
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The new income tax regime is the default option for all taxpayers from FY 2023-24 onwards and continues for FY 2024-25 (AY 2025-26). Taxpayers not actively choosing a regime will automatically be placed under the new one.
A standard deduction of Rs 50,000 is available for both salaried taxpayers and pensioners under the new tax regime from AY 2024-25 onwards.
Yes, for FY 2024-25 (AY 2025-26), LTCG from listed equity shares, equity-oriented funds, and business trusts are exempt up to Rs 1.25 lakh. Gains exceeding this limit are taxed at 12.5% without indexation, applicable for transfers made on or after July 23, 2024.
Generally, most deductions under Chapter VI-A are not allowed. However, exceptions include employer contributions to NPS (Section 80CCD(2)), contributions to the Agniveer Corpus Fund (Section 80CCH), and deductions for employee costs for eligible businesses (Section 80JJAA).
For resident individuals with a total income up to Rs 7,00,000, a tax rebate is available, making the tax liability zero. The rebate is the lower of the total tax payable or Rs 25,000.
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