The Income tax department has continued to provide both the old and new tax regime for the 2024-25 assessment year. How to save taxes with the new regime and file your income tax returns
Income tax return – Save taxes and file return properly
As India is taking giant strides with her economy and aiming to become top economies in the nect few years, its evolving its tax structure as well.
- Indian tax system is evolving to suit the changing and growing economy
- Direct and Indirect taxes (GST) are increasing in their net
- Old and new regime continues in 2024-25
- Tax payers must choose right regime to save on max taxes
Areas to save taxes
Tax Benefits for Specially Abled Individuals:
- Claim transport allowances up to a specified limit for Specially Abled Individuals
- Section 80JJAA allows employers to claim a deduction of up to 190% of additional employee costs for hiring new, eligible employees.
- Gifts up to ₹50,000 in a financial year is exempt from tax.
- Expenses for official tours or transfers are tax-exempt.
- Covers ordinary daily expenses for employees on tour or transfer.
- Up to a ₹2 lakh deduction if the house is occupied by the owner or family or is vacant. The entire interest is deductible if rented out.
- Voluntary Retirement Scheme (VRS) provides exemption up to ₹5 lakhs under Section 10(10C).
- Gratuity Exemption up to ₹20 lakhs under Section 10(10).
- Leave Encashment exemption up to ₹3 lakhs for private employees; full amount for government employees.
- Exempt up to ₹1,600 per month or ₹19,200 per year under Section 10(14)(ii) in Conveyance Allowance:
- Standard Deduction:₹50,000 introduced in 2023 for the New Tax Regime.
- Family Pension Deduction under Section 57(iia) for family pension income
- Deduction under Section 80CCD (2) for employer contributions to an employee’s Tier-I NPS account—up to 10% of salary for private employees and 14% for government employees.
Keep in mind these points and file Income tax returns correctly and in time.
Disclaimer: This is not a legal advice. Please check the official website of Income Tax department and take advice of your CA.