FINANCE

ITR Deductions Under New Tax Regime.  The new tax regime offers lower tax rates but fewer deductions as compared to the old regime. This has to be noted that, the new regime has now become the default option for all the taxpayers, meaning taxpayers who do not actively choose either regime will automatically be placed under the new one. Key Deductions & Allowance Under New Tax Regime 👇 1.  Standard deduction of Rs 50,000 can be claimed. 2.  Deductions on long-term capital gains from equity shares or mutual funds are capped at Rs 1 lakh. 3. Various exemptions apply to allowances such as transport, conveyance, travel, and employer contributions to employees' NPS accounts, among others. 👇 ▶️ Contributions your employer makes towards your National Pension System (NPS) account are exempt from tax. ▶️ If you are differently-abled, any transport allowance received from your employer is exempt from tax. ▶️ Retirement Benefits: Gratuity and leave encashment upon retirement ar...

As we approach the financial year end, it’s crucial to ensure that you complete all of your financial tasks before the deadline to avoid any fines or penalties.  Here’s a list of essential tasks which cover financial timelines that must be completed by March 31, 2024: Applicable for Individuals: Tax Saving Investments:  This is applicable to individuals opting for the old tax regime under income tax. March 31, 2024, is the cutoff date for making all your tax-saving investments such as LIC premium, Public Provident Fund, ELSS, National Pension Scheme, Donations, etc. for claiming Donations under section 80C, 80D, 80G, 80GGB, etc., for F.Y. 2023-24. Investment Declarations : March 2024, is the final month for submitting the Investments & Expenses proofs to the employer. Failure to do so will result in the deduction of higher TDS from Salary. Employers usually keep a deadline of February 15 or March 15 for submissions of investment declarations to consider while processing th...

A burning question that every individual taxpayer is confused about: Should we shift to the New tax regime or stay in the Old tax regime? As we move into the new year, this thread on new v/s old regime will help you make better tax planning decisions by March 31, 2024🧵👇 [ 1] Brief background An individual can opt to be taxed at beneficial rates under Section 115BAC, as per the slabs mentioned below! For FY24 onwards, the new tax regime shall be the default regime for all individuals and HUFs, unless opted otherwise. [2] Standard Deduction for salaried individuals A standard deduction of ₹50,000 is available to individuals under both the new and old regime. Unlike the new regime, which was applicable up to March 31, 2023. [3] Opting for the new tax regime! A number of exemptions/deductions are not available when the new tax regime is opted for. Here are some of them: 1. Section 80C 2. Section 80D 3. HRA/LTA 4. Interest on loan for self-occupied property 5. Any additional depreciation ...