Key Changes in Income Tax Regime for FY 2024-25: Tax Options, Concessions, and Surcharge Reduction
Income taxpayers have the option to choose the tax payment system for filing their Income Tax returns for the financial year 2024-25. They can opt for either the Old Tax Regime or the New Tax Regime.
Accordingly:
- 5% Income Tax will be imposed on citizens with an annual income bracket of Rs. 3 Lakhs to Rs. 6 Lakhs.
- 10% Income Tax will be imposed on citizens with an annual income bracket from Rs. 6 Lakhs to Rs. 9 Lakhs.
- 15% Income Tax will be imposed on citizens with an annual income bracket from Rs. 9 Lakhs to Rs. 12 Lakhs.
- 20% Income Tax will be imposed on citizens with an annual income bracket from Rs. 12 Lakhs to Rs. 15 Lakhs.
- 30% Income Tax will be imposed on citizens with an annual income exceeding Rs. 14 Lakhs.
It has been announced that the Standard Concession of Rs. 50,000/- given for citizens who pay under the Old Tax Regime will also be applicable for citizens paying under the New Tax Regime. This allows taxpaying citizens to avail additional tax relief.
For citizens with an annual income exceeding Rs. 5 Crores, the surcharge, which was 37%, has now been reduced to 25%.
For Insurance Policies taken after the 1st of April 2024, if the matured amount value exceeds Rs. 5 Lakhs, Income Tax has to be paid.
The Leave Tax Concession given to non-government employees with the upper limit of Rs. 3 Lakhs has now been revised to Rs. 25 Lakhs!
