Taxpayers in India got good news from Finance Minister Nirmala Sitharaman. FM announced a significant relief for taxpayers before the July 31 deadline. Individuals with an annual income of up to Rs 7.27 lakh will now be exempt from paying income tax. This move comes as a response to concerns raised amid introduction of the New Income Tax Regime. In this article, describe the finance minister's announcement's details and explain its calculation.
Income Tax News
The Union Budget for 2023-24 has introduced a new tax regime that grants income tax exemption to individuals earning up to Rs 7 lakh annually. However, there have been questions regarding the income of those who earn slightly more than 7 lakh rupees. To tackle these concerns, the government has broadened the range of tax exemptions within the new tax regime.
Relief for Middle-Class Taxpayers
Finance Minister Nirmala Sitharaman emphasized that the government aims to provide relief to the middle class through the new tax regime. By exempting individuals with an income of up to Rs 7.27 lakh from income tax, the government aims to ease the tax burden on the middle-income group.
Calculation of Exempted Income
After thorough deliberation, the decision was taken to provide an exemption for income up to Rs 7 lakh in the Union Budget. Sitharaman's team calculated and analyzed various factors before arriving at this decision. This calculation concluded that individuals with an income of 7.27 lakh rupees would be exempt from income tax. Hence, no tax will be levied on this income, while only incomes surpassing 7 lakh rupees will be subject to tax liability, with a break-even point set at 27,000 rupees.
Standard Deduction for Income Just Above 7 Lakh Rupees
To address concerns raised about the income just above 7 lakh rupees, Finance Minister Sitharaman assured taxpayers that the new tax system includes a standard deduction of 50,000 rupees. This deduction aims to provide convenience to taxpayers and tackle complaints about the lack of standard deductions in the previous tax regime.
Simplifying the Tax Structure
The government's decision to exempt individuals with an income of up to Rs 7.27 lakh from income tax reflects its efforts to provide relief to the middle class and simplify the tax structure.
The new tax regime aims to promote fairness in taxation and prevent individuals with lower incomes from shouldering unwarranted tax burdens. this tax scheme for both government jobs and private jobs holders.
Comments