FINANCE

In India, the New Tax Regime, introduced under Section 115BAC of the Income Tax Act, offers a simplified tax structure with lower tax rates but fewer deductions and exemptions compared to the Old Tax Regime. As of FY 2024-25 (AY 2025-26), applicable on March 19, 2025, the New Tax Regime is the default option, though taxpayers can opt for the Old Regime if it suits their financial situation better. Below are the key deductions available under the New Tax Regime: Deductions Allowed in the New Tax Regime Standard Deduction for Salaried Individuals and Pensioners Amount: ₹75,000 (increased from ₹50,000 in Budget 2024). Eligibility : Available to salaried employees and pensioners whose pension is taxed as salary income. Impact : This deduction reduces taxable income, effectively making income up to ₹7.75 lakh tax-free when combined with the ₹7 lakh rebate under Section 87A. Deduction for Family Pension Amount : ₹25,000 or one-third of the pension, whichever is lower (increased from ₹15,000 ...

Here’s a tailored March End Income Tax Checklist, highlighting key points to remember as of March 18, 2025, for the Financial Year (FY) 2024-25 (ending March 31, 2025). This is based on general practices under the Income Tax Act, 1961, and assumes the old tax regime unless specified, as it offers more deductions. Start early to avoid penalties or missed opportunities! 1) Furnishing of an updated return of income for the Assessment Year 2022-23: In Income tax, 31st March 2025 is the last date to file the updated return, if the taxpayer has made errors or omissions in their original or revised return for FY 21-22. 2) Investment for Deduction: If deduction u/s 80 ( for eg. 80C, 80G) is to be claimed in Income tax for FY 2024-25, then every taxpayer should verify the limits of Income tax and their tax liability and should invest, donate, etc. before 31st March 2025. 3) TDS on Salary: Salaried Employees should give the details of Investments and deductions tothe Employer to avoid excess TDS...