Attention all taxpayers! In case you missed out, here is something you need to know.
Have you been contemplating selecting either the old or new tax regime, which was introduced in the 2023 Budget?
As per the Income Tax Update in Budget 2023, the Indian government has announced a big relief in income tax filing, which will benefit many. Starting from the new financial year, taxpayers have the liberty to claim a standard deduction of Rs 50,000 under Section 16(IA) of the Income Tax Act, 1961, irrespective of whether they choose to opt for the new tax regime.
Here are valuable insights into the latest updates and how you can claim this benefit.
The Choice Between Old and New Tax Regimes
When it comes to filing income tax returns, a key consideration is whether to opt for the old income tax regime or the newly revised one. In the 2023 budget, the government announced some new exemptions and benefits that may sway investors to one system or the other.
But remember, this benefit we are talking about here is not available for all.
An Advantage for Salaried and Pensioner Taxpayers.
Under the new tax system, the government has announced the benefit of the standard deduction for taxpayers who belong to the salaried class.
Additionally, the new tax regime will be the default option, streamlining the ITR filing process.
Those who choose to remain in the new tax regime for the financial year can benefit from the standard deduction of Rs. 50,000 under Section 16(IA) of the Income Tax Act, 1961.
Who can Claim this Benefit of ₹50000?
Salaried and Pensioner Taxpayers Receive Income Tax Benefits.
It is available to those taxpayers who draw income from salaries or receive a pension.
The government’s introduction of a standard deduction of Rs. 50,000 provides much-needed relief to salaried employees and pensioners.
This deduction can be claimed on gross salary or pension and is a flat deduction, which means taxpayers do not have to file a separate application or provide any additional documentation to claim it, streamlining the filing process for salaried employees and pensioners and allowing them to benefit from the latest income tax relief.
Conclusion
As taxpayers, it’s important to stay up-to-date with the latest tax updates and changes. This latest income tax relief, introduced in Budget 2023, is a significant benefit if you belong to the above-mentioned category and opt for the new tax regime. This new system is directed to simplify the tax planning strategy for investors and traders.
Stay up to date, and make sure to keep a close eye on the ITR filing process and tax updates. As for 2023, there are multiple new changes, regulations, and changes coming up by SEBI in the interest of taxpayers.
Sources: businessleague.in
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