Basic Exemption Limit News Today

The online ITR forms were made available from April 1, 2024. Taxpayers eligible to file their tax returns can now login and fill their ITRs for FY 2023-24 using these ITR forms. The last date to file income tax returns for FY 2023-24 (AY 2024-25) is July 31, 2024.

Stay updated on the latest income tax rules effective from April 1, 2024. Discover insights into the new tax regime, its implications, and why it's set to become the default option for taxpayers.

Heres a look at some of the changes in tax rules that will be effective from April 1

New Tax Regime vs Old Tax Regime: An important aspect of opting into the new regime was that once opted in, persons having business/professional income could only opt out of the regime once and thereafter, would be prevented from opting back in.

Old Tax Regime vs New Tax regime: The Union government in Budget 2023 made the New Tax Regime a default choice. If a taxpayer does not choose between the old and new tax regimes, then their taxes will be automatically calculated under the new regime.

Personal Taxation Announcements in Interim Budget 2024: Though the government refrained from announcing any major populist measure, the finance minister provided some relief to individuals as well as startups

Unlike the tax rebate (available on incomes up to Rs 5 lakh and Rs 7 lakh, respectively, under the old and new tax regimes), a hike in the basic exemption limit will reduce the tax liability across income slabs

The Budget is crucial this year as it is the election year and the government holds the key. All eyes are on Finance Minister Nirmala Sitharaman on how the NDA government would balance the fiscal goals and electoral appeal.

Finance Minister Nirmala Sitharaman is scheduled to present the Interim Budget 2024 on February 1. It is speculated that as a pre-election gift, the Modi government may increase the income tax exemptions.

Concerns over claiming tax treaty benefits and simplification of withholding tax guidelines.