Income Tax News: Saving Bonanza! Master the Art of Savings, Crucial IT Regulations for AY 2024–25 You Must Know

Income Tax News: As the financial year 2024–25 gets underway on April 1, 2024, salaried people should be aware of these seven important income tax regulations.

Choosing Between Previous and Current TDS Systems

Workers have to choose between the previous and current salary-based TDS tax systems. If this option is not disclosed to the employer, the new regime's default tax deduction will apply.

Divergent Basic Exemption Limits

The previous and new tax regimes have different basic exemption limits. All persons are currently exempt from paying taxes on income up to Rs 3 lakh under the new regime. The age of the person determines the limit under the previous system.

Tax Exemption under Section 87A

Under Section 87A of both tax regimes, there is no tax due if net taxable income falls below a predetermined threshold. In comparison to the previous system, the new one offers a larger tax refund.

Diverse Deductions and Exemptions under Previous Regime

Although there are deductions and exemptions under both regimes, there are more choices under the former, such as donations, Sections 80C, 80D, and 80CCD (1B), as well as interest on house and student loans. The basic deduction of Rs 50,000 and the Section 80CCD (2) deduction for NPS contributions are among the fewer deductions under the new regime.

Deadline for Choosing Previous Tax Regime

If you choose to file your income tax return under the previous tax regime, you must do so before the deadline of July 31. It is only feasible to choose the previous system if the ITR is submitted on time.

Surcharge Variation for High Earners

High earners who opt for the new regime would pay a 25% lower surcharge on revenues over Rs 5 crore. If you choose the previous system, there will be a 37% surcharge.

Availability of E-Filing Forms

The e-filing income tax portal now has the ITR-1, ITR-2, and ITR-4 forms for FY 2023–24 (AY 2024–25) available. ITR-1, ITR-2, and ITR-4 Excel utilities for AY 2024–2025 are available for filing. For the fiscal year 2024–2025, the offline utilities for ITR-1, ITR-2, ITR–4, and ITR–6 are accessible for filing. It is possible to file Income Tax Return Forms ITR-1, 2 and 4 online using prefilled information at the portal.