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Union Budget 2023: If your annual income is Rs 7.50 lakh, then Finance Minister Nirmala Sitharaman’s budget box has brought a gift for you. If you opt for the new income tax regime, then you will not have to pay any tax. So let us explain to you in detail.
No tax on income of Rs 7.50 lakh!
Under the new income tax regime, the Finance Minister has announced that those earning up to Rs 7 lakh will not have to pay any tax. Earlier, those earning up to Rs 5 lakh did not have to pay any tax. But according to the announcement made in Budget 2023, now no tax will have to be paid on income up to Rs 7 lakh. Earlier, Rs 12500 was taxed at the rate of 5% on income between Rs 2.50 lakh to Rs 5 lakh, on which the government used to give rebate under 87A. But now Rs 25,000 tax would be levied on an income of Rs 7 lakh, on which rebate would be given, that is, no tax would have to be paid.
Standard deduction also benefits
Apart from this, taxpayers will also get the benefit of standard deduction in the new tax regime. In Budget 2023, salaried and pensioners will get the benefit of standard deduction of Rs 50,000. That is, if someone’s income is Rs 7.50 lakh, then he will not have to pay any tax. But the taxpayers who are not salaried or pensioners will have to pay tax.
Taxpayers benefit without deduction
The purpose of changing the tax slab under the new income tax regime is that in the old income tax regime, taxpayers whose annual income is more than Rs 7.5 lakh, they can get a standard deduction of Rs 50,000, investment up to Rs 1.50 lakh under 80C, NPS I get the benefit of tax exemption from Rs 50,000 to Rs 1 lakh under 80CC1B and Rs 25,000 under 80D. Apart from this, taxpayers also get tax exemption on interest up to Rs 2 lakh on home loan. It is believed that without deduction and exemption, it will be easier to file tax return.
Trying to make the new tax regime attractive
When Finance Minister Nirmala Sitharaman was asked about the change in the tax slab of the new tax regime, she said that we want to make the new tax regime attractive. But if someone feels that the old tax regime is right for them, then they can adopt it.
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