The income tax return (ITR) filing season for the financial year 2024 is underway, with a deadline set for July 31, 2024. During this period, several changes have been made to tax regulations that taxpayers should be aware of. Neglecting these changes could impact your income tax refund, according to Vikas Dahiya, Director of All India ITR. He highlighted significant changes that could affect your returns.
Tax Slabs and Rates Change In 2024, the government introduced new tax slabs under the optional new tax regime, offering lower tax rates without any deductions or exemptions. Opting for the old tax regime allows claiming various deductions and exemptions. While the New Tax Regime simplifies the process, it ends many deductions. Calculations can determine which option is more beneficial for you.
Standard Deduction for Pensioners A standard deduction of ₹50,000 has been introduced for pensioners. This applies to pension income, similar to relief available to salaried individuals. Pensioners should ensure to claim this deduction to reduce their taxable income.
Changes in Section 80C and 80D Limits Investments in PPF, NSC, and life insurance premiums under Section 80C can now receive deductions up to ₹1.5 lakh. Additionally, there's an increased limit under Section 80D for medical insurance premiums, encouraging digital payments and savings in the health sector. Taxpayers can claim higher tax deductions for premiums paid for health insurance for their families and elderly parents.
Increased Deduction on Home Loan Interest Section 80EEA now offers an additional deduction of ₹1.5 lakh on home loan interest for first-time homebuyers. The aim is to provide adequate relief to taxpayers availing new home loans.
Updated TDS and TCS The scope of Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) has been expanded. New rates for non-salaried individuals and additional compliance requirements for e-commerce transactions have been included. Taxpayers should review their TDS certificates to ensure proper credit in their ITR.
Faceless Assessment and Appeals To reduce human interface and improve transparency, the mechanism for faceless assessment and appeals has been expanded. Taxpayers should be familiar with the process and ensure timely online responses to all notices.
Form Updates ITR forms have been revised to include additional disclosures, particularly regarding foreign assets and significant financial transactions. Taxpayers with foreign investments or substantial financial activities need to provide detailed information to avoid penalties.
Relief for Senior Citizens Senior citizens aged 75 years or more, whose only income is pension and interest, are exempted from filing ITR, provided the bank deducts the necessary taxes. This reduces compliance burden for senior citizens dependent solely on pension income.
These changes underscore the importance of staying updated with tax rules and regulations to maximize savings and comply with legal requirements effectively.
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