The deadline for filing Income Tax Returns (ITR) for the financial year 2024 is 31st July. It’s crucial to be aware of the latest changes in tax rules to ensure you receive your tax refund.
Here are the seven updated rules related to ITR filing:
1. Zero Tax on Income up to Rs 7 Lakh
Under the new tax regime, income up to Rs 7 lakh is tax-free for the year 2024.
Taxpayers can choose between the new and old tax regimes, with the new tax regime being the default option and the old tax regime as an alternative.
2. Choosing the Right Tax Regime
If you opt for the New Tax Regime without any exemptions or deductions, you must select this option.
The Old Tax Regime allows for various tax deductions and exemptions, providing flexibility to taxpayers in managing their tax liabilities.
3. Standard Deduction for Salaried Class
A standard deduction of Rs 50,000 is now available for salaried individuals and pensioners, offering significant relief by reducing the taxable income.
This helps in lowering the tax burden for the salaried class.
4. Increased Section 80C Limit
The Section 80C deduction limit remains at Rs 1.5 lakh.
Investments in PPF, Sukanya Samriddhi Yojana, LIC premiums, and NSC qualify for deductions under 80C.
Additionally, Section 80D allows for a tax deduction on health insurance premiums up to Rs 75,000 for families and senior citizen parents.
Deductions can also be claimed for home loan principal payments and children’s education fees under 80C.
5. Home Loan Interest Deduction
Under Section 80EEA, an additional deduction of up to Rs 2 lakh is available on home loan interest.
This exemption aims to provide relief to taxpayers and encourage affordable housing.
6. Enhanced ITR Form Disclosures
The ITR form now requires more comprehensive disclosures, including details of foreign assets, income, and large financial transactions.
Taxpayers with foreign investments or significant transactions must provide detailed information to avoid penalties.
7. Exemption for Senior Citizens
Senior citizens aged 75 years or above, who derive income solely from pensions and interest, are exempt from filing ITR.
However, it is mandatory for banks to deduct the necessary tax from their pension and TDS from the interest income.
