ITR Filing Last Date: The term standard deduction refers to that part of income which is not subject to tax which can be used to reduce your tax. Now income taxpayers can get the benefit of standard deduction on filing tax even after filing ITR from the new tax regime.
Income Tax Return Filing: The last date for filing Income Tax Return is getting closer. In such a situation, those people who have not yet filed their personal income tax return, they will have to file ITR by 31 July 2023 for the income of the financial year 2022-23. At the same time, for filing ITR, people will have the option of filing ITR from the new tax regime and the old tax regime.
Income tax return
While presenting the Budget 2023, many new announcements were also made by the Modi government. During this, a big announcement related to standard deduction for taxpayers was also made by Finance Minister Nirmala Sitharaman. Actually, earlier the benefit of standard deduction was not available in the new tax regime, but it was announced in the budget 2023 that now the benefit of standard deduction can also be obtained from the new tax regime.
Standard deduction
The term standard deduction refers to the portion of income that is not subject to tax that can be used to reduce your tax. Now income taxpayers can get the benefit of standard deduction on filing tax even after filing ITR from the new tax regime.
Standard deduction under the new tax regime
The benefit of standard deduction available to salary earners and pensioners (including family pensioners) has been introduced under the new tax regime. A person opting for the new tax regime for the financial year 2023-24 will be eligible to claim standard deduction of Rs 50,000. Family pensioners opting for the new tax regime will be eligible to claim standard deduction of Rs 15,000.
Zero tax on income up to Rs 7 lakh
A person opting for the new tax regime for the financial year 2023-24 will have to pay zero tax if the taxable income does not exceed Rs 7 lakh in a financial year. In addition, a person with a taxable income of up to Rs 7.5 lakh can claim the benefit of standard deduction of Rs 50,000. This will reduce the taxable income to Rs 7 lakh and thus he will get zero tax liability.
