Quote on Major changes for Individual taxpayers by Preeti Sharma, Partner, Tax & Regulatory Services, BDO India
Below the Quote on Major changes for Individual taxpayers by Preeti Sharma, Partner, Tax & Regulatory Services, BDO India
1. Increase in the amount of rebate available under New Tax Regime for Individuals having taxable income up to INR 12 lakhs. Such taxpayer group is not required to pay any taxes and hence this will lead to tax saving of INR 80,000. If you are salaried individual with total income of INR 12.75 lakhs, due to availability of standard deduction of INR 75,000, you are not required to pay any taxes.
2. Change in tax slab rates under New Tax Regime which will clearly bring tax saving to all class of taxpayers as limit for minimum income subject to tax has been increased from INR 3 lakhs to INR 4 lakhs. Further, 30% tax rate will now trigger at income of above INR 24 lakhs instead of INR 15 lakhs.
There is no change in Old Tax Regime which clearly indicates Government’s agenda to reduce the number of takers of Old Regime. The fine print of New Income-Tax Bill is not yet issued but it indicates the Government intention to follow a single regime of taxation for Individuals aligned with framework of New Regime of taxation.
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