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New Tax Regime: Finance Ministry will review exemption-free tax system, preparing to make it more attractive

Revenue Tax News: The Finance Ministry is planning to assessment the tax system free from exemptions or concessions. The ministry has proposed to assessment the exemption-free tax regime quickly, to make it extra engaging to particular person revenue tax payers. Sources stated the federal government intends to arrange a tax system that doesn’t have any concessions.

Together with this, the federal government desires to finish the difficult outdated tax system with exemptions and deductions. A brand new tax regime was launched within the General Price range 2020-21. On this, taxpayers got the choice to decide on between the outdated system with varied deductions and exemptions and the brand new system of decrease charges with out exemptions and deductions. The motive behind all this train was to present aid to the person revenue tax payers and to simplify the revenue tax legislation.

ITR Outdated Tax Submitting: Missed to file revenue tax? nonetheless have likelihood

When requested concerning the expertise of the brand new tax regime, the sources stated there are clear indications that those that have repaid their housing and training loans wish to transfer to the brand new tax regime as they now have some form of freedom or There isn’t any possibility to assert exemption. Sources stated that lowering taxes within the new system will make it extra engaging. An identical tax regime was launched for company taxpayers additionally in September 2019. On this tax charges have been decreased in addition to exemptions or concessions have been additionally abolished.

Within the new tax regime launched on February 1, 2020, for particular person revenue tax payers, individuals with an annual revenue of as much as Rs 2.5 lakh won’t should pay any tax. Revenue between Rs 2.5 lakh and Rs 5 lakh attracts a tax of 5 %. Equally, 10 per cent on revenue between Rs 5 lakh to 7.5 lakh, 15 per cent on Rs 7.5 lakh to Rs 10 lakh, 20 per cent on revenue between Rs 10 lakh and Rs 12.5 lakh, 25 per cent on revenue between Rs 12.5 and 15 lakh and Rs 15 lakh. 30 % tax is levied on revenue of greater than Rs.

ITR Update: It’s essential to e-verify revenue tax return in 30 days, in any other case you’ll not get refund, perceive the brand new rule right here

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