Income tax returns for FY 2023-24: Remember these 8 tax law changes when filing your ITR this year
PTC News Desk: The government makes modifications every year to enhance compliance, streamline procedures, or deal with changes in the economy. It is essential to stay up to date on these changes in order to guarantee correct tax filings and take advantage of any possible advantages.
“While the core filing process might seem familiar, even minor adjustments in regulations can significantly impact your tax calculations, deductions, and potential refunds,” states Vikas Dahiya, Director of ALL India ITR. Additionally, he highlights a number of noteworthy modifications that may have an effect on the way you file your ITR in 2024.
Updated tax rates and slabs: The government has unveiled new tax slabs for the optional new tax regime this year, offering reduced tax rates without deductions or exemptions. The new regime, which streamlines the procedure but removes the majority of deductions, or the previous system, which offers a variety of deductions and exemptions, are the options available to you. It’s critical to weigh the two regimes in order to decide which is best for your financial circumstances.
Retirees’ Standard Deduction: A new standard deduction of Rs 50,000 has been made available to pensioners. This covers pension income and offers a similar level of relief to that which is given to people on salaries. In order to lower their taxable income, pensioners should make sure this deduction is taken.
Modifications to the Section 80C and 80D limitations: The Section 80C limits, which cover NSC, PPF, and life insurance premiums, stay at Rs 1.5 lakh. Nonetheless, there has been a drive to encourage digital savings and payments in the healthcare industry, as seen by the higher Section 80D medical insurance cap limitations. Higher tax deductions are now available to taxpayers for health insurance premiums paid for older parents, families, and themselves.
Increased home loan interest deduction: The Section 80EEA house loan interest deduction of Rs 1.5 lakh has been enhanced for first-time homebuyers. In addition to offering taxpayers with new home loans significant relief, this attempts to promote home ownership.
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Provisions pertaining to Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) have been updated: The provisions have been enlarged. increased TDS rates for professionals and non-salaried individuals, as well as increased compliance requirements for e-commerce transactions, are noteworthy modifications. It is the taxpayer’s responsibility to check their TDS certificates and make sure the right credits are included in their ITR.
Faceless evaluation and appeals: In an effort to decrease human interaction and increase openness, the government has broadened the faceless evaluation and appeal processes. It is recommended that taxpayers acquaint themselves with the procedures and guarantee that all submissions and notice responses are submitted electronically within the designated timeframes.
Increased reporting requirements: Significant transactions and overseas assets and income are among the new disclosures included in the redesigned ITR forms. In order to avoid fines, taxpayers who have substantial financial operations or investments abroad must submit comprehensive information.
Senior citizen relief: If the bank deducts the appropriate amount of tax, seniors 75 years of age and older who only receive pension and interest income are excused from submitting an ITR. For senior persons with simple sources of income, this simplification lessens the compliance load.
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