FM Nirmala sitharaman update on Income Tax: Finance Minister Nirmala Sitharaman had given a very good news to the income tax payers in this budget. From now on, the new financial year has started and if you want to save your tax this year, then this news is for you. Let’s know about it in detail.
Finance Minister Nirmala Sitharaman had given a very good news to the income tax payers in this budget. From now on, the new financial year has started and if you want to save your tax this year, then this news is for you.
While announcing, Seetharaman had said that there will be no tax on income up to Rs 7 lakh. There has been a big change in the income tax rules by the government, which have been implemented in the new financial year, so now you also know which rules have changed-
Getting many tax benefits
Focusing on the new tax regime, the central government has made tax free up to Rs 7 lakh to the general public. Along with this, many types of tax benefits are also available. Let us tell you that from April 1, 2023, the new tax regime is the default tax regime. From now on, the entire format on the ITR portal will be according to the new tax regime system.
There was no change in the old tax regime
Let us tell you that if you have filed tax in the old tax regime, then you will have to select it separately. Along with this, you will have the option to file tax in the old tax regime as well. At present, no change has been made in the old tax regime with exemptions like investment and HRA.
Income up to 7 lakhs became tax free
Income up to Rs 7 lakh per annum has been made tax free in the new Income Tax Slab. Meaning if your annual income is Rs 7 lakh, then you will not need to pay any tax with the rebate.
Basic exemption has been raised to Rs 3 lakh
Let us tell you that in the new tax regime, the basic exemption limit (tax free limit) has been increased to Rs 3 lakh. Earlier there was no tax up to an income of Rs 2.5 lakh. At the same time, instead of 6 tax slabs, now there will be 5 tax slabs, in which income up to Rs 7 lakh will be tax free with rebate instead of Rs 5 lakh. Apart from this, those earning Rs 15.5 lakh in the new tax regime will also get the benefit of standard deduction, which will be Rs 52,500.
