In a significant move, the Modi government has introduced a new provision that grants tax relief to a large number of taxpayers in the country.
This development comes as great news for individuals who pay income tax, providing them with much-needed respite.
Finance Minister Nirmala Sitharaman made a special announcement regarding this in the Budget 2023,
outlining the specific group of people who will be exempted from tax payments.
Budget announcement and increased exemption limit:
During the budget presentation in February, the government declared that individuals filing taxes under the new tax regime would be relieved from paying taxes.
As part of this initiative, the income tax exemption limit was raised to Rs 7 lakh.
Consequently, individuals with an annual income of up to Rs 7 lakh will no longer be required to file taxes.
Benefit for higher earners:
Previously, the exemption limit stood at Rs 5 lakh. However, the government decided to raise it to Rs 7 lakh, resulting in a significant advantage for those with higher salaries. This increase in tax exemption serves as a welcome relief for individuals falling within this income bracket.
Additional benefit of standard deduction:
Under the new tax regime, individuals who are salaried employees or pensioners will also benefit from the standard deduction.
Those who file taxes under this regime will receive an additional deduction of Rs 50,000.
Consequently, after earning an annual income of seven lakh rupees under the new tax regime, individuals will be eligible for a rebate of Rs 50,000 through the standard deduction.
This move by the government aims to ease the tax burden on individuals, particularly those with moderate incomes, and provide them with greater financial flexibility.
The increased exemption limit and additional deductions in the new tax regime contribute to a more taxpayer-friendly system and align with the government’s commitment to fostering economic growth and easing the financial burdens of the citizens.
