In a significant move, the Modi government has announced a major decision that will bring relief to income tax payers.
Finance Minister Nirmala Sitharaman, in the Budget 2023, has raised the income tax limit to Rs 7 lakh, effectively exempting millions of taxpayers from paying income tax.
Budget Announcement:
The Modi government presented the budget in February 2023, and Finance Minister Nirmala Sitharaman has now provided much-needed relief to tax filers under the New Tax Regime.
The revised income tax limit of Rs 7 lakh means that individuals earning up to this amount will no longer have to pay taxes.
Expansion of the Limit:
Previously, the income tax limit under the new tax regime was set at Rs 5 lakh.
However, the revised limit of Rs 7 lakh has now benefited high-income taxpayers.
Boost from Standard Deduction:
In addition to the increased income tax limit, the new tax regime also introduces a significant benefit in the form of standard deduction.
Salaried individuals and pensioners who file income tax will now enjoy an additional benefit of Rs 50,000.
Further Exemptions for New Taxpayers:
Under the new tax regime, individuals earning up to Rs 1 lakh annually will receive an extra exemption of Rs 50,000.
This development has brought great joy to those with an annual income of Rs 7 lakh, as they are now exempt from paying taxes,
a requirement that previously applied to those earning Rs 5 lakh annually.
