Income tax return filing for assessment year 23-24 has started. The last date is till 31st July. After that, penalty will be Rs 1,000 for those earning less than Rs 5 lakh and Rs 5,000 for those earning more than Rs 5 lakh.
Income Tax Return : Income tax return filing for assessment year 23-24 has started. The last date is till 31st July. After that, penalty will be Rs 1,000 for those earning less than Rs 5 lakh and Rs 5,000 for those earning more than Rs 5 lakh. At this time, those who file returns have to choose one from the old and new scheme. Both forms are available on the departmental site. In such a situation, which scheme would be beneficial for them. It is important to know this. Pradeep Kumar, income tax advocate and president of the Taxation Bar Association, has told that it is important to keep some things in mind before choosing the slab.
Understand tax slab
Estimate the correct income before choosing the new or old tax regime. If your annual income is up to Rs 15 lakh or less and if you have not made any kind of investment, then the new system will be good for that. Under the new tax regime, 20 per cent tax is levied, whereas under the old regime, 25 per cent has to be paid.
Important things for investors
If you are a taxpayer who has invested in various schemes like life insurance, health insurance, pension plan, as well as paying home loan or similar loan premium, then opt for the old tax regime. This is because under the new system, taxpayers will not be able to claim any deduction under Section 80C of the Income Tax Act. In such a situation, he will have to suffer a loss of Rs 1.50 lakh and will be able to get only a rebate of Rs 50,000 in the form of standard deduction.
Required for HRA and TLA
If the taxpayer lives in a rented house or his job is traveling, then because of this he gets rebates like House Rent Allowance and Leave Travel Allowance which are tax free. In such a situation, if this amount is more, then continue in the old tax system. This benefit will not be available in the new system.
Chance to change option
In the beginning, if you are not able to understand which system will be correct, then it is better to remain in the old one. After this, one can go to the new system in the subsequent financial year, but once the taxpayer has opted for the new tax system, then it is not possible to go back to the old tax scheme.
Compare both the systems
If you have prepared the details of income and expenditure, then in the end the right decision can be taken by comparing both the arrangements. Income tax calculator is provided in the Income Tax Department site, with the help of which the most suitable tax regime can be determined on the basis of income and deductions.
