Important news for taxpayers. Actually, if you also want to save your tax, then this news is for you. You can save tax money in the new income tax regime. Let’s know how…
n Budget 2023, the Finance Ministry has made several changes, giving relief to individual taxpayers, including revising the new tax regime and reducing the tax slab, as well as increasing the income limit from Rs 5 lakh to Rs 7 lakh.
is major. The Finance Ministry has kept the new tax regime as default. Taxpayers also get many such benefits in the new tax regime, which they are less aware of. Let us understand about these tax benefits.
Rebate of Rs 50000 as standard tax deduction-
The Income Tax Department has allowed taxpayers to avail Rs 50,000 as standard deduction. For this, there is no compulsion for taxpayers to choose new or old tax regime and there is no need to present any proof. The benefit of standard tax deduction is available to employed and pensioners and family pensioners.
Benefit on employer contribution in NPS-
If the employer contributes up to 10% of the employee’s basic salary and DA in the NPS of the employee, then deduction is available under section 80CCD(2). Experts say that the employer’s contribution does not come under the purview of tax. This benefit is applicable in both the new and old tax regime.
Exemption on employer’s contribution to employee’s EPF-
Other tax benefits in the new tax regime include employer contribution to EPF. The employer contributes 12 per cent of the employee’s basic salary to the EPF account. To get the tax benefit, the annual income of the employee should not exceed 7.5 lakhs.
Life insurance policy maturity amount out of tax net-
The amount received on maturity of life insurance policy is exempt from tax and it is applicable in both new and old tax regime. According to the new tax regime, the annual premium limit for a life insurance policy should not exceed Rs 5 lakh.
