Income tax act salary deductions

Disclaimer: The content on this page is only to give an overview and general guidance and is not exhaustive. For complete details and guidelines please refer Income Tax Act, Rules and Notifications.

This return is applicable for a Resident (other than Not Ordinarily Resident) Individual having Total Income from any of the following sources up to ₹ 50 lakh

Note: ITR-1 cannot be used by a person who:
(a) is a Director in a company
(b) has held any unlisted equity shares at any time during the previous year
(c) has any asset (including financial interest in any entity) located outside India
(d) has signing authority in any account located outside India
(e) has income from any source outside India
(f) is a person in whose case tax has been deducted u/s 194N
(g) is a person in whose case payment or deduction of tax has been deferred on ESOP
(h) has any brought forward loss or loss to be carried forward under any head of income (i) has total income exceeding Rs. 50 lakhs.

This return is applicable for Individual and Hindu Undivided Family (HUF)

This return is applicable for Individual and Hindu Undivided Family (HUF)

This return is applicable for an Individual or Hindu Undivided Family (HUF), who is Resident other than Not Ordinarily Resident or a Firm (other than LLP) which is a Resident having Total Income up to ₹ 50 lakh and having income from Business or Profession which is computed on a presumptive basis (u/s 44AD / 44ADA / 44AE) and income from any of the following sources:

Agricultural Income up to ₹ 5,000

Note:

ITR-4 cannot be used by a person who:
(a) is a Director in a company
(b) has held any unlisted equity shares at any time during the previous year
(c) has any asset (including financial interest in any entity) located outside India
(d) has signing authority in any account located outside India
(e) has income from any source outside India
(f) is a person in whose case payment or deduction of tax has been deferred on ESOP
(g) who has any brought forward loss or loss to be carried forward under any head of income (h)has total income exceeding Rs. 50 lakhs.

Please note that ITR-4 (Sugam) is not mandatory. It is a simplified return form to be used by an Assessee, at his option, if he is eligible to declare Profits and Gains from Business or Profession on presumptive basis u/s 44AD, 44ADA or 44AE.

Forms Applicable

Income Tax Department (It is available on e-Filing Portal:

Login > e-File > Income Tax Return > View Form 26AS)

Note : Information regarding (Advance Tax/SAT, Details of refund, SFT Transaction, TDS u/s 194 IA,194 IB,194M, TDS defaults) which were available in 26AS will now be available in AIS mentioned below.

Income Tax Department (It can be accessed after logging on to Income Tax e-Filing portal)

Path to access AIS: Go to e-filing
portal > login > AIS

• Tax Deducted / Collected at Source
• SFT Information
• Payment of taxes
• Demand / Refund
• Other information (like Pending/Completed proceedings, GST Information, Information received from foreign government etc)

Tax Slabs for AY 2024-25

The Finance Act 2023 has amended the provisions of Section 115BAC w.e.f AY 2024-25 to
make new tax regime the default tax regime for the assessee being an Individual, HUF, AOP
(not being co-operative societies), BOI and Artificial Juridical Person. However, the eligible taxpayers have the option to opt out of new tax regime and choose to be taxed under old tax regime. The old tax regime refers to the system of income tax
calculation and slabs that existed before the introduction of the new tax regime. In the old tax
regime, taxpayers have the option to claim various tax deductions and exemptions.

In case of "non-business cases", option to choose the regime can be exercised every year
directly in the ITR to be filed on or before the due date specified under section 139(1).

I n case of eligible taxpayers having income from business and profession and wants to opt out of new tax regime, the assessee would be required to furnish Form-10-IEA on or before the due date u/s 139(1) for furnishing the return of income. Also, for the purpose of withdrawal of such option i.e. opting out of old tax regime shall also be done by way of furnishing Form No.10-IEA.

However, i n case of eligible taxpayers having income from business and profession option to switch to old tax regime and withdraw the option in any subsequent AY is available only once in lifetime.

Tax rates for Individual (resident or non-resident) less than 60 years of age anytime during the previous year are as under:

Tax rates for Individual (resident or non-resident), 60 years or more but less than 80 years of age anytime during the previous year are as under:

Tax rates for Individual (resident or non-resident) 80 years of age or more anytime during the previous year are as under:

Note:

1. The rates of Surcharge under the tax regimes are as under:

Note: The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112, 112A and Dividend Income. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%, except when the income is taxable under section 115A, 115AB, 115AC, 115ACA and 115E.

2. Rebate u/s 87A: Resident Individuals are also eligible for a Rebate of up to 100% of income tax subject to a maximum limit depending on tax regimes as under:

Tax rebate up to Rs.12,500 is applicable for resident individuals if the total income does not exceed Rs 5,00,000 (not applicable for NRIs

Tax rebate up to Rs.25,000 is applicable for resident individuals if the total income does not exceed Rs 7,00,000 (not applicable for NRIs

3. The rate of Health & Education cess remains same in both the regimes.

Surcharge, Marginal Relief and Health & Education Cess

Surcharge is an additional charge levied for persons earning Income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates. For rates of surcharge, refer table above.

Does not exceed (Rs.)

Investments / Payments / Incomes on which I can get tax benefit

Section 24(b) – Deduction from Income from House Property on interest paid on housing loan & housing improvement loan. In case of self- occupied property, the upper limit for deduction of interest paid on housing loan is ₹ 2 lakh. However, this deduction is not available for person opting for New Tax Regime.

Interest on loan u/s 24(b) allowable is tabulated below:

Construction or purchase of house property

Tax deductions specified under Chapter VIA of the Income Tax Act

These deductions will not be available to a taxpayer opting for the New Tax Regime u/s 115BAC, except for deduction u/s 80CCD (2), 80CCH which will be applicable for New Tax Regime as well.

Deduction towards payments made to

• Life Insurance Premium
• Provident Fund
• Subscription to certain equity shares
• Tuition Fees
• National Savings Certificate
• Housing Loan Principal
• Other various items

Annuity plan of LIC or other insurer towards Pension Scheme