ITR Exemption: Good news for taxpayers! 6 exemptions will be available on ITR from old tax regime, know details

ITR Filing: The Finance Minister had announced that the taxation system introduced by the government would be in default from the financial year 2023-24. Under the New Tax Regime, it has been said to give relief from income tax on income up to Rs 7 lakh annually.

Income Tax Return Last Date: Form 16 (Form-16) has been issued by the companies to the employees. Now it is your responsibility to file your income tax return on time. The last date for filing ITR from the Income Tax Department is 31 July. After this, you may have to pay a penalty for filing the return. If you also file income tax return every year, then this news will be useful for you.

Income tax free up to Rs 7 lakh

Finance Minister Nirmala Sitharaman had announced changes in personal income tax this year while presenting the Union Budget on February 1, 2023. The Finance Minister had announced that the taxation system introduced by the government would be in default from the financial year 2023-24. Under the New Tax Regime, it has been said to give relief from income tax on income up to Rs 7 lakh annually. Apart from this, those who select the new tax regime will also get the benefit of standard deduction of Rs 50,000.

There is no exemption on any kind of investment in the new tax regime. But if you want exemption on investment or any other type, then you should select old tax regime and file tax return accordingly. Let us know in detail about the six exemptions available in the old tax regime-

Exemption available under old tax regime

1. Rebate of Rs 50,000 for salaried employees under standard deduction.
2. Under section 80C, exemption of up to 1.5 lakh on investment in EPF and PPF, ELSS, life insurance premium, home loan repayment, SSY, NSC and SCSS.
3. Maximum exemption of Rs 10,000 on interest income from savings account of bank, co-operative society or post office under section 80TTA.
4. Section 80 CCD (1B): Income tax exemption on deposits up to Rs 50,000 in NPS.
5. Income tax exemption is also available on health insurance premium under section 80D.
6. Donations made to trusts and charitable institutions are eligible for deduction under section 80G.