New Income Tax Slabs for Financial Year 2024-25 – Check your slab now
In the recently presented Union Budget in the Parliament, most of the tax payers, especially the middle class earning population had high expectations from this budget. Better tax incentives, more relaxations and tax slabs that promote savings were some of the expectations pinned on this budget. The budget has been delivered on this by introducing new income tax slabs for taxpayers. As an earning person and tax payer, how has the budget benefited you?? Let’s take a look at the new tax slab that was introduced and see the overall benefits of that slab.
Income Tax Calculator: All employees, teachers and teachers receiving salaries for the financial year 2024-25 must submit their income tax statements on the first of February. Our Effort Income Tax Calculator Excel Tool for West Bengal Government Employees and Salaried Employees of All Levels.
You can easily calculate the salary statement and income tax for the financial year 2023-24 using this income tax calculator published by us. You will get both New Tax Regime and Old Tax Regime in this Excel tool. You can choose your option by comparing the two tax systems.
Difference between old system and new system:
There are major differences between the two tax systems. They are-
- The new tax system has more tax slabs with lower tax rates than the old tax system.
- The income tax slabs for the financial year 2022-23 fluctuate based on whether you go with the old regime or the new regime.
- The exemptions allowed under Chapter VI under the old tax system become fully effective under the introduction of the new tax rules.
- This means that the chances of you reducing your tax liability are reduced.
- Compared to the new system, there were up to 70 tax exemptions and exemptions which helped the tax payer to save a lot of tax.
- Despite the better slab rates, the absence of tax breaks and exemptions is a disadvantage.
Benefits of health insurance:
Under Section 80D of the Income Tax Act, you are eligible for tax deduction on premium payments made for health insurance. They are-
- If you, your partner and your children are under 60 years of age, you can get a discount of up to ₹25,000 on your premium for an offline or online health insurance policy.
- If your parents, under the age of 60, are also covered under the same policy, you can get an additional deduction of up to ₹25,000. This means the maximum deduction for persons below 60 years is ₹50,000
- If your parents are above 60 years of age, you can get a maximum deduction of ₹50,000 for them, in addition to a deduction of up to ₹25,000 that you can avail for yourself and your spouse. In this scenario, the maximum deduction is up to ₹75,000.
- If you, your spouse or your child, the beneficiary of the policy, is above 60 years of age, you can get a maximum deduction of ₹50,000.
- If your parents are above 60, you can get an additional deduction of up to ₹50,000. So, the deduction is up to a maximum of ₹1 lakh.
However, these benefits can be made available under the old system. Under the new system, these exemptions are not available.
If the free file option you used last year is no longer listed or you are no longer eligible, you can now e-file using any of the other options but you will need to create an account with the new software. Remember to have a copy of the last year’s return with you so that you have all the information you need to e-file easily!
Excel Tool Download:
This Excel tool provides salary statement and tax calculation output in the same page. And with this you can also choose detailed account if you need. You can download this calculator by clicking on the link below.
Frequently Asked Question (FAQs):
- New Income Tax Slabs for Financial Year 2023-24 – Check your slab now.
- Difference between old system and new system.
- Benefits of health insurance.
- Excel Tool Download.
