New income tax slabs and tax rates under the revised tax regime

Under the new tax regime for the FY 2023-24(AY 2024-25), the income tax slabs, as well as the rates, have been revised; let’s have a look at them.

• Up to ₹3,00,000: No tax
• ₹3,00,001 to ₹6,00,000: 5% tax
• ₹6,00,001 to ₹9,00,000: 10% tax
• ₹9,00,001 to ₹12,00,000: 15% tax
• ₹12,00,001 to ₹15,00,000: 20% tax
• ₹15,00,001 and above: 30% tax

Surcharge rate under the revised new tax regime

The rate of surcharge has been reduced from 37% to 25% for those who opt for the new tax regime and earn more than Rs. 5 crores. Therefore, the only people who will be affected by this increase in rates are those who choose to accept the new tax system and earn more than Rs. 5 crores in a year.

The concept of "5% on 3-6 Lakh, 10% on 6-9 Lakh, But No Tax on Income up to 7 Lakh" under new tax slabs

A tax rebate is similar to a reduction in your tax liability. But the catch is that this discount is only for residents or those who live in the country.

Tax slabs are the same set of parameters that all taxpayers, individuals, families, and businesses use to determine their tax liability. Whether or not you live in the country, these slabs determine how much tax you have to pay based on your income.

Hence, the first step in calculating your taxes is to determine how much taxes you owe by looking at these slab rates. The discount can then be deducted from that amount if you are an individual resident. This tax deduction reduces your final tax liability, even sometimes down to zero. However, you should note that this is only for resident individuals.

Deductions under the new tax regime

• If you're a salaried person, you can get a standard deduction of up to Rs 50,000.
• In addition, if you receive a pension, you can also get a standard deduction. It's either Rs 15,000 or one-third of your pension amount, whichever is less.
• If you have a home loan, you can deduct the interest you pay on the loan under section 24b. This applies if you've rented out the property.
• If your employer contributes to your NPS (National Pension Scheme), that contribution can also be deducted from your taxable income.
• Any contributions you make towards the Agniveer Corpus Fund, covered under section 80CCH, can also be deducted.

Changes in ITR Forms for AY 2024-25

1-Bank (For All ITR Form):

From now on, all of your bank account types must be mentioned on your tax forms.

2-Deductions (All ITR Forms): Section 80CCH now has a new section where deductions can be claimed. This deduction is only available to those who registered for the Agnipath Scheme after November 1, 2022.

3-Cash Receipts (ITR-3 & ITR-4) for 44AD:

The turnover limit for section 44AD is now Rs. 3 crores in ITR-3 and ITR-4 forms if your cash turnover is 5% or less. If not, it continues to stay at Rs.2 crores.

4- 44ADA (Cash Receipts; ITR-3 & ITR-4):

A new rule puts the turnover limit for section 44ADA in ITR-3 and ITR-4 forms at Rs. 75 lakhs if your cash turnover is 5% or less. If not, it will stay at Rs. 50 Lakhs.

5-Details of the CGAS Account (ITR-2 & ITR-3):

Long-term capital gains (LTCG) reinvestment has necessitated the submission of the "Date of deposit," "Account number," and "IFS Code" in addition to the amount deposited in a "capital gains accounting scheme" (CGAS) account.

6-E-Verification (ITR-2 & ITR-3): For individuals or HUFs going through a tax audit, the e-verification procedure has been simplified for the ease of Income tax E-filing in India. You can now utilize an electronic verification code (EVC) in addition to the Digital Signature Certificate (DSC). This is greatly helpful because individuals and HUFs will no longer have to buy DSC each year.

7-LEI Number (ITR-2 & ITR-3): LEI or Legal Entity Identifier is a unique 20-digit code used in global financial transactions.

The "LEI Number" and its "Valid UpTo Date" have been made mandatory for refund claims in ITR-2 and ITR-3, the amount of which is more than Rs. 50 crores.

8-Schedule VDA(ITR-2 & ITR-3):

From now on, every cryptocurrency sale needs to be recorded separately in Schedule VDA (ITR-2 & ITR-3).

9-Section 54GB (ITR-2 & ITR-3): Since section 54GB will expire on March 31, 2023, entrepreneurs will no longer be able to reinvest their long-term capital gains under this provision. Therefore, it is not listed on the FY 2024–2025 ITR forms.