Good News: These people will get a tax exemption of Rs 5 lakh!
Not many days are left for the presentation of the country's general budget. Budget 2023 will be presented in the first week of February. The countrymen have high hopes for this budget. If you also pay tax, then great news can be announced for you in the budget.
Everyone has to pay taxes, as the income of the people increases, the amount of tax also increases, which has to be paid. Income tax slabs are different for different income groups. The Government of India has kept income tax slabs for people of different income groups. At the same time, preparations for the General Budget 2023-24 are going on in full swing. The government can give big relief to taxpayers in the budget to be presented in February next year. The countrymen have huge expectations from this general budget.
In fact, industry body Assocham has demanded the government double the income tax exemption limit in the next budget. Assocham has said that if the tax exemption limit is increased from the present Rs 2.5 lakh to Rs 5 lakh, then the demand will increase. Giving the reasoning behind this, Assocham said that if the government brings updates in the income tax slabs, then more income will remain in the hands of the consumers and consumption in the economy will get a boost.
Income of Rs 2.5 lakh will not be taxed, this exemption was already there. No changes have been made to it. Income from Rs 2.5 lakh to Rs 5 lakh will also attract 5% tax as before. People earning more than Rs 5 lakh have got a big relief
People can pay income tax according to two slabs. One of these includes the Old Tax Regime, while the other is the New Tax Regime. The new tax regime rates have not been differentiated on the basis of age. However, under the old tax regime, senior citizens whose age is between 60 and 80 years were. For such people, there is no tax on annual income of Rs 3 lakh. On the other hand, if very senior citizens whose age is more than 80 years. For them, no tax has to be paid on an annual income of Rs 5 lakh.
The new tax regime was introduced by the Union Finance Minister in Budget 2020, wherein there is an option for individuals and Hindu Undivided Families (HUFs) to pay tax at lower rates without claiming deductions under various sections. The tax rates are different in the old tax regime and the new tax regime. However, if the age of a taxpayer is less than 60 years, then he does not have to pay any tax on Rs 2.5 lakh annually.
This time the Finance Ministry has given a major relief to the middle-income group by making major changes in the income tax rates. However, it has to be kept in mind that you will get the benefit of the new income tax rates only when you do not take advantage of any kind of deduction or tax exemption. Those taxpayers who want the benefit of deduction and tax exemption can remain in the old system of tax i.e. old tax regime.