New Income Tax Rules applicable from 1st April 2024

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1. New Tax Regime as Default Choice:

You will be taxed under the new regime unless you specify the old regime when filing. Previously, you had to choose the new tax regime.


2.  Tax Rate under the different tax regime for Individuals and HUF

 New Tax Regime

Annual Taxable Income

Tax Rate

0 - 3,00,000

0 %

3,00,001 - 6,00,000

5 %

6,00,001 - 9,00,000

10 %

9,00,001 - 12,00,000

15 %

12,00,001 - 15,00,000

20 %

Above 15,00,000

30 %


Old Tax Regime

Annual Taxable Income

Individuals (Other than Senior and Super Senior Citizens)

Resident Senior Citizen

Resident Super Senior Citizen

0 – 2,50,000

0 %

0 %

0 %

2,50,001 - 3,00,000

5 %

0 %

0 %

3,00,001 - 5,00,000

5 %

5 %

0 %

5,00,001 - 10,00,000

20 %

20 %

20 %

Above 15,00,000

30 %

30 %

30 %

 

3. Reduction in Surcharge

The highest rate of surcharge of 37% on income exceeding 5 Cr has been reduced to 25 % under new tax regime.






4. Introduction of Standard Deduction to new tax regime

Standard Deduction of Rs 50,000 is now been available for new tax regime

 

5.  Taxation on the Maturity of Life Insurance Policy

Maturity proceeds from life insurance policies, which are issued on or after 1 April 2023, where the total premium exceeds Rs 5,00,000, will be subject to taxation.

 

6. TDS on withdrawal of Employee Provident Fund (EPF)

The Tax Deducted at Source (TDS) rate on Employee Provident Fund (EPF) withdrawals has been reduced from 30% to 20%, easing the tax burden on EPF subscribers during withdrawal.

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