Income Tax Rules 2024-25

ANNEXURE-I

SALIENT FEATURES OF INCOME TAX RULES FOR THE FINANCIAL YEAR ENDING ON 31ST MARCH, 2024

STANDARD DEDUCTION U/S 16

As per the amended Section 16 of the Income–tax Act, 1961, a taxpayer having income chargeable under the head “Salaries” shall be allowed a deduction of Rs 50,000/- or the amount of salary, whichever is less, for computing his taxable income. The income chargeable under the head "Salaries" shall be computed after making a deduction of fifty thousand rupees or shall be computed on the amount of the salary of individual whichever is less.

DEDUCTION OF INTEREST ON HBL U/S 24

Income chargeable under the head "Income from house property" shall be computed after making the following deductions, namely:

• A sum equal to thirty per cent of the annual value;
• Where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:

Provided that in respect of property referred to in sub-section (2) of section 23, the amount of deduction shall not exceed thirty thousand rupees:

Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed within three years from the end of the financial year in which capital was borrowed, the amount of deduction under this clause shall not exceed Rs. 2,00,000 (Rupees two lakh).

DEDUCTION U/S 80C

Under section 80C deduction would be available from gross total income. The investment eligible under section 80C are given hereunder, these includes Life Insurance premium (paid for self, spouse and children), contribution to Provident Fund, purchase of Infrastructure Bond, payment of Tuition Fee for any two children, repayment of Principal Amount of Housing loan, contribution towards NSC (including accrued interest for first five years), specified bond of NABARD, specified plan of Mutual Fund etc.

Amount deductible under section 80C is equal to 100% of the qualifying investment or 1,50,000/- whichever is lower.

DEDUCTION U/S 80D

For Whose Benefit	Deductible Amount (Rs.)
Assessee, Spouse & Dependent Children	25,000
Assessee's Parents	25,000
Senior Citizen Parents	50,000
Preventive Health Check-up	5,000

INCOME TAX RATES

Total Income	Rate of Tax
Up to Rs. 3,00,000	Nil
Rs. 3,00,001 to Rs. 6,00,000	5%
Rs. 6,00,001 to Rs. 9,00,000	10%
Rs. 9,00,001 to Rs. 12,00,000	15%
Rs. 12,00,001 to Rs. 15,00,000	20%
Above Rs. 15,00,000	30%

Rebate Under Section 87A

After computing the tax on total income, rebate up to Rs. 12,500/- shall be allowed as per following rules.

An assessee, being an individual resident in India, whose total income does not exceed Rs. 5,00,000 shall be entitled to a deduction from the amount of income tax on his total income with which he is chargeable for any assessment year, of an amount equal to hundred percent of such income tax or an amount of twelve thousand five hundred rupees whichever is less.

Deposit of TDS to Government Account

It must be ensured that TDS deducted is deposited to the account of Central Government through e-payment mode by 7th day of the following (next) month. If Tax deducted is deposited belated (late) then interest @1.50% p.m. for every belated month or part of the month shall be charged by Income Tax Department.

For more details, refer to the official income tax notifications.