Four changes in tax rules, I-T slabs unchanged:FM offers new scheme for small taxpayers, extends belated ITR deadline to March 31

Finance Minister Nirmala Sitharaman did not make new announcements regarding income tax slabs, but she proposed to extend the revised ITR filing deadline to 31 March on payment of a nominal fee. Individuals with ITR 1 and ITR 2 returns will continue to file till 31 July, and non-audit business cases or trusts are proposed to be allowed time till 31 August. The government also proposed a reduction in the TCS rate for pursuing education and medical education under the liberalised remittance scheme from 5% to 2%. In the previous Budget, the government had raised the standard deduction from ₹50,000 to ₹75,000. 4 changes related to income tax or tax No change in income tax slabs There has been no change to the income tax slabs this time. If you choose the old tax regime, income up to ₹2.5 lakh remains tax-free. Under the new tax regime, as before, income up to ₹4 lakh is exempt from tax. With the benefit of Section 87A, salaried individuals can claim tax relief on income up to ₹12.75 lakh, while others can avail of an exemption on income up to ₹12 lakh. Why there is no change: According to tax expert Anand Jain, the government had already increased the tax-free limit under the new tax regime from ₹7 lakh to ₹12 lakh in last year’s Budget. Therefore, there was almost no possibility of any further change this year. Chartered Accountant Sunil Jain explains how much tax you need to pay under the new and old tax regimes… Let’s understand the New Tax Regime Let’s understand the Old Tax Regime If you choose the old tax regime, only income up to ₹2.5 lakh is tax-free. However, under Section 87A of the Income Tax Act, you will pay zero tax on income up to ₹5 lakh. Three key questions about the old and new tax regimes Question 1: What is the difference between the old and new tax regimes?
Answer: Under the new tax regime, income up to ₹4 lakh is tax-free, but tax deductions are not available. In contrast, if you choose the old tax regime, you can benefit from a wide range of tax deductions. Question 2: What tax benefits can you claim under the Old Tax Regime?
Answer: Investments in EPF, PPF and Equity Linked Savings Schemes (ELSS) are deducted from your total taxable income. In addition, spending on medical insurance, interest paid on home loans, and investments in the National Pension System (NPS) also reduce your taxable income. Question 3: Who should opt for the Old Tax Regime?
Answer: If you want to take advantage of investments and tax deductions, the old tax regime may be the better option for you. However, if you prefer lower tax rates and want to avoid the hassle of managing deductions, the new tax regime could be the right choice.