The Indian Income Tax Act, 1961 is the primary legislation governing taxation in India. It provides for all aspects of taxation, from levy and assessment to collection and recovery of taxes. Every financial year, changes in the Income Tax Act are notified and implemented by the government, for the purpose of making the tax system more efficient and equitable. The financial year of 2023–24 is no different. The government has made several changes to the Income Tax Act in order to reduce the tax burden on individuals and businesses. Here, we will discuss some of the key changes that have been made to the Income Tax Act in order to reduce your personal income tax in India A.Y. 2023–24.  With the A.Y. 2023–24 fast approaching, taxpayers are looking for ways to reduce their personal income tax burden and make the most of their hard–earned money. Here are some tips on how to reduce your personal income tax in India A.Y. 2023–24:

 1. Invest in tax-saving instruments: Tax-saving instruments such as Equity-Linked Savings Schemes (ELSS), National Pension System (NPS), Senior Citizen Savings Scheme (SCSS) and so on, can help you save tax. You can invest up to Rs 1.5 lakh in these instruments and avail tax deductions.

2. Make use of deductions available under the Income Tax Act: There are a number of deductions available under the Income Tax Act, 1961. These deductions help to reduce taxable income and thereby help in reducing tax liability. Some of the deductions available are tax deductions under Section 80C, Section 80D, Section 80E and Section 80G.

3. Opt for the new tax slab rates: Taxpayers can opt to pay taxes as per the new tax slabs introduced in the Union Budget 2020. This will help to reduce their tax liability.

4. Claim benefits under the House Rent Allowance (HRA): Taxpayers can claim deductions under the House Rent Allowance (HRA) provided they are paying rent for the accommodation they are living in.

 5. Take advantage of tax exemptions available to senior citizens: Senior citizens are eligible for certain tax exemptions. They can claim tax benefits on their income from interest, dividends and long term capital gains.

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8 months ago

It will be great support if new tax slabs is elaborated for better understanding of taxpayers.

CA Ankit Gulgulia (Jain)
Reply to  mltiwari

Hope this Helps