I have to send money to my daughter's family in USA every month. I am paying Tax Collected at source. Is there any change in the new budget?

Ans: Hi
The difference between the old and new tax regime is that many deductions and exemptions are not available if an individual opts for the new tax regime.

Standard deduction, PT deduction, Mediclaim, Life Insurance, PF, NPS, Donations etc., are some of the common deductions that would not have been available to an individual opting for the new tax regime. The benefit that the individual would get by opting the new tax regime is that she / he would get lower rates of tax slab as compared to an individual opting for old tax regime.

With the new budget proposals, the FM intends to extend atleast 3 distinct benefits to individuals opting for the new tax regime.

1. Standard deduction would be available to be claimed
2. Slab rates of tax has been rationalized (improved) to give better tax relief to the individual
3. Individuals opting for new tax regime have got enhanced Nil tax window of Rs. 7 Lakhs as compared to old tax regime limit of Rs. 5 Lakhs. As your income even after the standard deduction would be above Rs. 7 Lakhs, this benefit is not really applicable to you.

If we look at an income of Rs. 10 Lakhs with standard deduction of Rs. 50000; you would pay Rs. 52,500 under the new tax regime (current budget proposal) as compared to Rs. 67,500 under the new tax regime (last year budget). So effectively comparing apple to apple, you have an additional saving of Rs. 15,000 in taxes

Ans: For senior citizen specifically no new benefits are announced. However, Senior citizen can take benefit of revised rate of tax under new tax regime and if income is upto 7 lacs, senior citizen can also take benefit of 100% rebate of tax.

Ans: No change made in Budget 2024 for personal income tax.

Ans: As per RBI regulations, an Indian person can only take USD 2,50,000 per financial year out of India. Further, a refundable tax to the extent of 20% (considering its not for your daughter's health and education) needs to be paid at the time of remittance which can be claimed in your income tax return as a refund.

Ans: As per proposal of Finance (No.2) Bill 2024, standard deduction has been proposed to increase it to Rs.75,000 for person having income from salary