Dear Sir,
Income tax rate under the new regime has been revised while presenting the budget for FY 2024-25. However, no correction has been issued for Section 87A.
If the total income does not exceed Rs 7 lakh in the new regime, as per the new rate proposed under the new regime as per Budget document, tax will not exceed Rs. 20,000/-.
A clarification is necessary in this regard
Thanks
K.SundaraRajan
After the passing of finance bill 2, 2024; the sec 87A will be amended by ITD to 20K for new regime.
Dear Sir,
This means that Income Tax rate amended in Budget 2024 is an eyewash. Budget proposal has tweaked the Income tax under New regime and 87A deduction amount will be reduced. This is taking the citizen under New regime for a ride.
The amendment will be to effect the reduction of tax rate due to new slab rate. Finally, the income upto 7 lakhs will be tax-free, no change in that.
CAclubindia
