New Delhi: Under the new tax regime, there is no income tax on an individual’s annual income up to Rs.7 lakhs. It has been announced in the Union Budget that the income tax exemption ceiling is increased to Rs.3 lakh.
Union Finance Minister Nirmala Sitharaman presented the Union Budget for the year 2023-24 in the Lok Sabha yesterday. This budget has been prepared on the basis of 7 important aspects which are inclusive growth, government schemes reaching the poor people, infrastructure – increasing investment, resources – making full use of opportunities, green growth, youth power and financial services. Various schemes have been announced to benefit the poor and middle class. Specifically, after 8 years, the income tax exemption ceiling has been raised.
In this regard, Finance Minister Nirmala Sitharaman said in the budget speech:
Here are 5 major announcements in the budget regarding Personal Income Tax that everyone is eagerly waiting for. This will benefit the hard working middle class.
First Notice: There are 2 procedures in personal income tax assessment old system and new system. There is no income tax up to Rs 5 lakh in both the procedures. In this budget, the income tax exemption limit is raised to Rs 7 lakh in the new tax regime.
2nd Notice: There are 6 different tax rates in the new tax regime. It is now reduced to 5. Also, in the new tax regime, the personal income tax exemption ceiling is increased from Rs 2.5 lakh to Rs 3 lakh.
According to this, there is no tax up to Rs.3 lakh. Rs.3 Lakh to Rs.6 Lakh 5 percent, Rs.6 Lakh to Rs.9 Lakh 10 percent, Rs.9 Lakh to Rs.12 Lakh 15 percent, Rs.12 Lakh to Rs.15 Lakh 20 percent, 30 percent tax is payable above Rs.15 lakhs.
According to this, if a person earns an annual income of Rs.9 lakh, he will have to pay Rs.45,000 in tax. Earlier Rs.60,000 was taxable for the same income limit. Currently, the tax rate has been reduced by 25 percent. If a person earns more than Rs 15 lakh per annum then he has to pay income tax of Rs 1.5 lakh. Earlier the same income limit was taxed at Rs 1,87,500. Currently, the tax has been reduced by 20 percent.
3rd Notification: Basic exemption will be given to wage earners, pensioners, family pensioners in the new tax regime. According to this, wage earners earning Rs 15.5 lakh and above per annum can avail concession up to Rs 52,000.
4th Notice: Higher income earners are subject to 42.74 percent income tax. This is one of the highest income tax rates in the world. In view of this, in the new income tax, the surcharge rate for high income earners is reduced from 37 per cent to 25 per cent. This brings down the maximum tax rate from 42.74 percent to 39 percent.
5th Notification: Earned leave for retirement of non-government employees was fixed at Rs.3 lakhs in 2002. This limit is now raised to Rs 25 lakh.
We plan to follow the new tax regime as a mainstream practice. However, those who prefer the old system can pay tax through the same procedure.
Time to complete income tax return filing process will be reduced from 93 days to 16 days. Modern income tax return application forms will be introduced. Income Tax Grievance Procedures will be strengthened.
He said this.
The personal income tax exemption ceiling announced in the Union Budget is only applicable to the new tax regime. The tax exemption ceiling was not raised under the old taxation system.
When the senior auditors said, “When filing income tax, you must choose between the new procedure and the old procedure. Otherwise, the new taxation procedure will automatically be taken into account.
Major Schemes, Fund Allocations:
> Allocation of Rs 5.94 Lakh Crore to the Defense Department
> 2.7 lakh crore for the transport and highways department
> Allocation of Rs.2.41 Lakh Crore to Railway Department
> Allocation of Rs.1.25 lakh crore for the welfare of farmers
> Allocation of Rs.1.23 lakh crore for IT sector
> Target to disburse Rs.20 lakh crore agricultural credit
> India will emerge as a small grain production hub
> 157 Nursing Colleges near 157 Medical Colleges
> 10 lakh crore for capital expenditure to increase employment
> 50 new airports, helipads
> Free food and grain in ration for 80 crore families
> A National Digital Library will be set up
> E-Courts project at a cost of Rs.7,000 crore
> 100 laboratories will be set up for 5G service testing
> National Hydrogen Project at Rs.19,700 crore
> 10,000 laboratories to promote organic farming
> 50 years interest free loan to state governments