Things to be Remembered for New Tax Regime
Are you prepared for the upcoming changes in the tax regime starting from Assessment Year (AY) 2024-25? It’s essential to stay informed about the latest updates and ensure you comply with all the regulations to avoid any penalties or surprises. Discuss with our Professionals to get filed your ITR under correct tax regime.
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Things to be Remembered for New Tax Regime from AY 2024-25 Onwards
Are you prepared for the upcoming changes in the tax regime starting from Assessment Year (AY) 2024-25? It’s essential to stay informed about the latest updates and ensure you comply with all the regulations to avoid any penalties or surprises. In this article, we will discuss some key things that you need to remember for the tax regime from AY 2024-25 onwards.
Introduction of New Tax Regime
With every new financial year, the government introduces new tax deductions to encourage savings and investments. Keep an eye out for any new deductions that may be announced for AY 2024-25. These deductions can help you reduce your taxable income and save on taxes.
Key Things to be remembered for Tax Regime from AY 2024-25
Things to be remembered for Tax Regime from AY 2024-25
- Default Tax Regime is New Tax Regime u/s 115BAC, it means if you want to opt for Old Tax Regime then you have to select it specially in ITR Form
- If you are filing ITR 1 or ITR 2 then you can select any regime Old or New while filing ITR and No need to file Form 10IEA for opting old tax regime for AY 24-25 and opting out of old tax regime from AY 25-26
- If you are filing ITR 3 or ITR 4 then you can select old tax regime by Filing Form 10IEA for AY 24-25 and later on if you want to opt out of old tax regime from AY 25-26 onwards then again filing of Form 10IEA is mandatory and after that you can’t opt for old tax regime again
- For opt in or opt out of old tax regime you have to excercise option on or before due date u/s 139(1)
- In Old Regime Tax Rebate u/s 87A is Rs.12,500/- subject to total income of Rs.5 Lakh and in New Regine Tax Rebates u/s 87A is Rs.25,000/- subject to total income of Rs.7 Lakh
- If you have a deduction u/s 80C only or No Any Deductions then Never go for the old regime, the new regime is always beneficial & If you have claimed deductions for home loan interest, section 80C and section 80D then Never go for the new regime, the old regime is always beneficial
- Whatever you have opted till AY 23-24 have no impact on regime selection option from AY 24-25 (AY 24-25 is the first year for filing form 10IEA for opting old tax regime for ITR 3 or ITR 4)
In conclusion, staying informed and proactive is key to navigating the tax regime from AY 2024-25 onwards. Keep track of the latest updates, comply with tax laws, and engage in tax planning to ensure a smooth tax filing experience. By following these tips, you can effectively manage your tax liabilities and secure your financial future.
