New Tax Regime मे मिलने वाले फायदे AY 2024-25 II New Tax Regime Benefits AY 2024-25 II

CA Ved Taya

21 Jun 202408:41

Summary

TLDRThe video script discusses the benefits of the new tax regime in India, explaining how filing ITR under the new regime by July 31, 2024, can be advantageous. It highlights increased basic exemption limits, reduced surcharge for high-income earners, and rebates under section 87A. The script also covers deductions for investments, family pension benefits, and marginal relief for those with income slightly over the limit. It emphasizes the tax benefits for salary earners and pensioners, as well as the importance of understanding the new tax regime's advantages before filing ITR for assessment year 2024-25.

Takeaways

😀 The new tax regime offers various benefits for individuals filing their ITR before July 31, 2024, for the assessment year 2024-25.
📈 Under the old tax regime, all types of benefits related to salary, HRA, LTA, and other sections like 80C, 80D, 80E, and 80G are available.
💼 The new tax regime increases the basic exemption limit from 2.5 lakhs to 3 lakhs, providing tax exemption up to this income without any tax liability.
🔑 The tax slab benefits in the new regime are wider, with no tax on income up to 3 lakhs and a 30% tax rate applicable only after crossing an income of 15 lakhs.
🚀 A significant benefit introduced in the new tax regime is the rebate under section 87A, which increases the rebate limit and provides a rebate on tax liability up to 25,000 for those with a total income of up to 7 lakhs.
🏠 Home loan interest benefits are available up to 2 lakhs under both old and new tax regimes, but the new regime specifies conditions for self-occupied properties.
👴 For senior citizens, the new tax regime provides additional benefits such as standard deduction and deductions for family pension, which were previously available only under the old tax regime.
🔥 A new section introduced for army personnel, allowing contributions to the Agniveer Corpus Fund under section 80CCC2 to be eligible for benefits.
👴👵 The new tax regime also provides a marginal relief benefit, which is applicable when the income crosses 7 lakhs, ensuring that the tax liability does not increase disproportionately.
💼 Employer's contribution to NPS under section 80CCD(2) is also a benefit in the new tax regime for those in an employer-employee relationship.
👉 It is crucial for taxpayers to understand the benefits available under the new tax regime before deciding to file their ITR under it, especially considering the changes in rebate and deduction limits.

Q & A

What are the benefits of the new tax regime introduced in India?
-The new tax regime in India offers benefits such as an increased basic exemption limit, a wider tax slab, reduced surcharge for high-income individuals, and rebate on tax payable under certain conditions.
What is the basic exemption limit under the old and new tax regime?
-Under the old tax regime, the basic exemption limit is up to 2.5 lakhs, whereas in the new tax regime, it has been increased to 3 lakhs.
How does the tax liability change under the new tax regime for individuals with income up to 15 lakhs?
-For individuals with income up to 15 lakhs, there is no tax liability under the new tax regime, as the basic exemption limit covers their income.
What is the tax rate for individuals whose income crosses 15 lakhs under the new tax regime?
-For individuals whose income crosses 15 lakhs, the tax rate is 30% under the new tax regime.
How has the surcharge been reduced for high-income individuals in the new tax regime?
-The surcharge for high-income individuals, previously applicable at 37% for income over 5 crores, has been reduced to 25% in the new tax regime.
What is the rebate under section 87A in the new tax regime for individuals with taxable income up to 7 lakhs?
-Under section 87A, individuals with taxable income up to 7 lakhs are eligible for a rebate on their tax liability, up to a maximum of 25,000 rupees in the new tax regime.
Are there any benefits for pensioners under the new tax regime?
-Yes, pensioners are eligible for benefits under the new tax regime, including standard deduction and rebate under section 87A, provided their total income is within the specified limits.
What is the benefit of filing ITR under the new tax regime for a salaried individual with pension, if their total income is up to 7.5 lakhs?
-A salaried individual with pension, filing ITR under the new tax regime and having a total income up to 7.5 lakhs, will not have to pay any tax due to the standard deduction and rebate under section 87A.
How does the new tax regime benefit individuals with family pension?
-The new tax regime provides benefits for individuals with family pension, allowing deductions on a portion of the pension amount, subject to certain conditions.
What is the benefit introduced for army personnel under the new tax regime?
-A new section has been introduced for army personnel, offering benefits on contributions made to the Agniveer corpus fund, which was not available under the old tax regime.
What is the marginal relief benefit introduced in the new tax regime?
-The marginal relief benefit, applicable only in the new tax regime, provides tax relief for individuals whose income marginally crosses certain thresholds, helping them save on tax payments.

Outlines

00:00

📊 New Tax Regime Benefits and Assessment Year 2022-2025

The speaker discusses the benefits of the new tax regime in India, which taxpayers can opt for while filing their Income Tax Returns (ITR) for the Assessment Year 2022-2025 by July 31, 2024. The new regime offers increased basic exemption limits, reduced tax liabilities for high-income individuals, and rebates under Section 87A. It also covers the benefits of deductions under various sections like 80C, 80D, 80E, and 80G for investments and donations. The speaker emphasizes that while the new tax regime has fewer benefits compared to the old one, it provides significant tax relief for those with income up to 7 lakhs, including standard deductions and relief for salary earners and pensioners.

05:01

🏠 Home Loan Interest Benefits and Marginal Relief in New Tax Regime

This paragraph delves into the specifics of the new tax regime, highlighting the benefits for home loan interest under Section 24, the changes in the marginal relief benefit, and the conditions under which these benefits apply. The speaker clarifies that the home loan interest benefit is available only for let-out properties and not for self-occupied ones unless they generate rental income. Additionally, the marginal relief benefit, which was previously not available in the old tax regime, is introduced in the new tax regime for those with income crossing 7 lakhs. The speaker also mentions the benefits for contributions to the National Pension Scheme (NPS) under Section 80CCD and the importance of understanding these benefits when filing ITR for the Assessment Year 2024-2025.

Mindmap

Keywords

💡New Tax Regime

The 'New Tax Regime' refers to the revised tax system introduced in India, which offers certain benefits and changes in tax computation for individuals. In the video's context, it is the system that taxpayers can opt for when filing their Income Tax Returns (ITR). The script mentions benefits like increased basic exemption limits and rebates under this regime.

💡Old Tax Regime

The 'Old Tax Regime' is the previous tax system in India, which is being compared with the New Tax Regime throughout the script. It is used to illustrate the differences in benefits and tax liabilities. For example, the script contrasts the benefits available under the old regime with those in the new regime, highlighting the changes.

💡Income Tax Return (ITR)

An 'Income Tax Return (ITR)' is the document that taxpayers file annually to report their income, deductions, tax credits, and the tax payable to the government for a financial year. The script discusses the process of filing ITRs under both the old and new tax regimes and the benefits of each.

💡Basic Exemption Limit

The 'Basic Exemption Limit' is the minimum amount of income that is not subject to tax. The script explains that this limit has been increased under the New Tax Regime, providing taxpayers with a higher threshold before they become liable for income tax.

💡Tax Liability

'Tax Liability' refers to the amount of tax that an individual or entity owes to the government based on their income and applicable tax laws. The video discusses how the New Tax Regime can potentially reduce an individual's tax liability by offering various benefits and deductions.

💡Section 80C

Section 80C of the Indian Income Tax Act allows individuals to claim deductions on investments and expenses that contribute to the country's social and economic development. The script mentions that under the old regime, taxpayers can claim benefits up to 1.5 lakh under this section.

💡Rebate

A 'Rebate' in the context of taxation is a reduction in the amount of tax payable. The script explains that under the New Tax Regime, the rebate limit under Section 87A has been increased, providing additional benefits to taxpayers with certain income levels.

💡Salary Income

'Salary Income' is the earnings received by an individual for their employment. The script discusses how salary income is treated under both tax regimes and the benefits that salaried individuals can avail, such as standard deduction and pension benefits.

💡Standard Deduction

The 'Standard Deduction' is a fixed amount that can be deducted from an individual's gross income to reduce their taxable income. The script highlights that the New Tax Regime offers a higher standard deduction, which can lower the tax liability for certain taxpayers.

💡Home Loan Interest

The 'Home Loan Interest' refers to the interest paid on a loan taken to purchase a home. The script explains that under the New Tax Regime, the benefits for home loan interest are available only in specific situations, unlike the Old Tax Regime where they were more broadly applicable.

💡Section 80 CCD(2)

Section 80 CCD(2) of the Indian Income Tax Act pertains to additional deductions available for contributions made to the National Pension System (NPS). The script mentions that the New Tax Regime provides benefits for contributions under this section, which can help in tax planning.

Highlights

Benefits of the new tax regime are discussed, including potential advantages for individuals filing their ITR by July 31, 2024.

Under the old tax regime, all types of benefits are available, including salary-related deductions like HRA, LTA, and other allowances.

Investment benefits under sections 80C, 80D, 80E, and 80G are highlighted, with deductions up to INR 1.5 lakhs.

In the new tax regime, not all benefits from the old tax regime are available, but some can still be beneficial.

The basic exemption limit is increased from INR 2.5 lakhs to INR 3 lakhs in the new tax regime.

Tax slab benefits are also higher in the new tax regime, with no tax on income up to INR 3 lakhs.

For individuals with income over INR 15 lakhs, a tax of 30% applies in the new tax regime.

Rebate under section 87A is increased in the new tax regime, offering benefits up to INR 25,000 in tax liability.

The rebate benefit is extended to those with a total income of up to INR 7 lakhs in the new tax regime.

Standard deduction benefit of INR 50,000 is now available to salaried individuals and pensioners under the new tax regime.

Family pension benefits are also provided in the new tax regime, with deductions on pension amounts.

A new section for army background individuals has been introduced, offering benefits under the Agniveer Corpus Fund.

Marginal relief benefit is a new addition in the new tax regime, applicable when income crosses INR 7 lakhs.

Home loan interest benefits are limited to let-out properties in the new tax regime, not applicable for self-occupied properties.

Employer's contribution to NPS under section 80CCD(2) is a benefit in the new tax regime for those in an employment relationship.

A detailed explanation of how to maximize tax savings under the new tax regime is provided.

The video offers guidance on which tax regime to choose based on individual income levels and benefits.

A playlist is created for ITR filing for financial year 2024-25, including videos on ITR filing for previous years.