![]() Upon intimation, the employer will compute his total income, and deduct tax at source thereon according to the option exercised. The Revenue Department has clarified that the employer will seek information from each of its employees having salary income regarding their intended tax regime and each such employee will intimate the same to the employer. If the taxpayer has business income, the option, once exercised, will be mandatory for all subsequent financial years as well, with only a one-time change being permitted later. The NPTR option can be exercised for every financial year if the taxpayer has no business income. (This is not an exhaustive list and just an overview of certain deduction/ exemptions which are not allowed in the NPTR). except employer’s contribution to notified pension scheme, such as National Pension Scheme All Chapter VIA deductions of the Income-tax Act available for expenditure by way of employee’s contribution to provident fund, children tuition fees, insurance premium, donations, medical premium, etc.Deduction of interest payment on housing loans for self-occupied property and restrictions on set-off of loss from let out property.Exemption of free food and beverages through vouchers provided by the employer.Allowance under which incomes that do not form part of the total income of the Income-tax Act, except certain prescribed allowances.Under the NPTR, the taxpayer is not eligible to claim certain exemptions/ deductions/ set-off of losses/ carry forward of losses, such as: Personal income tax rates - new personal tax regimeĮffective 1 April 2023, the tax rates under the new personal tax regime (NTPR), devoid of any deductions or exemptions, have been revised as under: Taxable income (INR) RNOR and NR individuals are not subject to tax in respect to their income earned and received outside of India. NRs are subject to tax in India only in respect to income that accrues/arises or is deemed to accrue/arise, or is received or deemed to be received in India.RNORs are subject to tax in India only in respect to income that accrues/arises or is deemed to accrue/arise in India, or is received or deemed to be received in India, or is from a business controlled in or a profession set up in India.RORs are subject to tax in India on their worldwide income, wherever received.Under Indian tax laws, the scope of taxation differs as per the residential status of an individual: Resident but not ordinarily resident (RNOR).Resident and ordinarily resident (ROR).Resident in India, which is further divided into the following two categories:.The following types of residential status are envisaged for an individual: See the Residence section for more information. The residential status of individuals is determined independently for each tax year and is ascertained on the basis of their physical presence in India during the relevant tax year and past years. Taxation of individuals in India is primarily based on their residential status in the relevant tax year.
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