The Income Tax Department of India has announced an important update for taxpayers. The deadline for filing Income Tax Returns (ITR) for the financial year (FY) 2024-25 has been extended. The new deadline is September 15, 2025, giving taxpayers an additional 45 days to submit their returns. This extension was granted by the Central Board of Direct Taxes (CBDT) due to major changes in the ITR forms and the necessary time for system readiness.
Taxpayers have two regimes to choose from while filing their returns: the new tax regime and the old tax regime. The new tax regime is now the default option for most taxpayers. However, salaried individuals have the option to choose the old tax regime if they wish. Those who submit their returns after the deadline can only file under the new tax regime.
**Income Tax Slabs Under New Regime**
Under the new tax regime, the income tax slabs are structured as follows:
– Income from ₹0 to ₹3,00,000: 0%
– Income from ₹3,00,001 to ₹7,00,000: 5%
– Income from ₹7,00,001 to ₹10,00,000: 10%
– Income from ₹10,00,001 to ₹12,00,000: 15%
– Income from ₹12,00,001 to ₹15,00,000: 20%
– Income above ₹15,00,001: 30%
This structure aims to simplify tax calculations for individuals with varying income levels. The new regime also allows a standard deduction of ₹75,000 for salaried individuals and pensioners.
**Key Deductions and Rebates**
The new tax regime includes several key deductions and rebates:
1. **Standard Deduction**: Taxpayers can claim a standard deduction of ₹75,000.
2. **Section 87A Rebate**: Individuals with a net taxable income of up to ₹7 lakh are eligible for a rebate of ₹25,000. This means that if your taxable income does not exceed ₹7 lakh, you will not owe any tax.
3. **NPS Contribution**: Taxpayers can claim a deduction of up to 14% of their basic salary under Section 80CCD(2) if they opt for the new tax regime.
**No Tax for Income Up to ₹12 Lakh**
The government has announced that for the financial year 2025-26, there will be zero tax on incomes up to ₹12 lakh. However, this does not apply to the current ITR filing for FY 2024-25. This new rule will be effective for income earned between April 1, 2025, and March 31, 2026.
**Income Tax Slabs Under Old Tax Regime**
The old tax regime has not seen any changes in its income tax slabs. Taxpayers can choose between the two regimes while filing their returns. The slab rates are age-dependent, as follows:
– For individuals below 60 years:
– Income from ₹0 to ₹2,50,000: 0%
– Income from ₹2,50,001 to ₹5,00,000: 5%
– Income from ₹5,00,001 to ₹10,00,000: 20%
– Income above ₹10,00,001: 30%
– For senior citizens aged 60 to 80 years:
– Income from ₹0 to ₹3,00,000: 0%
– Income from ₹3,00,001 to ₹5,00,000: 5%
– Income from ₹5,00,001 to ₹10,00,000: 20%
– Income above ₹10,00,001: 30%
– For super senior citizens aged above 80 years:
– Income from ₹0 to ₹5,00,000: 0%
– Income from ₹5,00,001 to ₹10,00,000: 20%
– Income above ₹10,00,001: 30%
**Choosing Between the Two Regimes**
Taxpayers need to evaluate their income and deductions to decide which regime is better for them. The old tax regime allows for various deductions and exemptions, making it suitable for individuals with higher investments. On the other hand, the new regime offers lower tax rates but limits the available deductions.
In conclusion, taxpayers in Gujarat and across India should be aware of the extended deadline and the benefits of each tax regime. Understanding these changes will help individuals make informed decisions when filing their ITR.