Major announcements on personal income tax
Finances 2023: Sitharaman announced that the new income tax regime will now be the default tax regime. However, citizens will hold to have the choice to avail the benefit of the old tax regime.
1)The first notion became related to the rebate on non-public profits tax. People with earnings up to ₹five lakh do not pay any income tax underneath both old and new tax regimes. Sitharaman proposed to elevate this rebate restriction to ₹7 lakh in the new tax regime. “for that reason, folks within the new tax regime, with profits up to ₹7 lakh will no longer need to pay any tax,” she stated.
2) Sitharaman had delivered in 2020, a new non-public tax regime with six earnings tax slabs starting from ₹2. 5 lakh. She has now proposed to reduce the wide variety of slabs to 5 and boom the tax exemption limit to ₹3 lakh.
3) The third proposal was for the salaried class and the pensioners including family pensioners. She proposed extending the standard deduction benefit to the new tax regime. “Each salaried person with an income of ₹15.5 lakh or more will thus stand to benefit by ₹52,500,” the minister said.
4) her fourth thought in personal profits tax changed into regarding the very best tax charge, which currently stands at forty-two. Seventy-four in step with cent. Sitharaman proposed to reduce the best surcharge charge from 37% to 25% in the new tax regime. She stated the proposed change could bring about a discount of the most tax charge to 39 percent.