In the General Budget 2023-24, a change in the new alternative tax regime has been proposed, in which it is planned not to tax annual income up to Rs 7 lakhs. The modified scheme has also allowed taxpayers to claim a standard deduction of Rs 50,000.
The government expects an overwhelming response to the revised income tax regime and believes that its benefits will reach all sectors of the taxpayer. A senior Income Tax official raised this possibility on Friday. In the General Budget 2023-24, a change in the new alternative tax regime has been proposed, in which it is planned not to tax annual income up to Rs 7 lakhs. The modified scheme has also allowed taxpayers to claim a standard deduction of Rs 50,000.
It is believed that through this initiative, the government is courting the salaried class to adopt the new tax regime. However, no tax exemption is granted on investment in it. Central Board of Direct Tax (CBDT) Chairman Nitin Gupta said: “The benefit is trickling down to all sections of taxpayers… Since the standard deduction will be given to salaried taxpayers in the new regime, effectively salaried people earn up to Rs 7.50 lakh.employee will not be required to pay any tax.
In addition to expanding the standard deduction, the budget exemption limit has also been increased. Under the new tax regime, no tax will be charged on income up to Rs 3 lakh. Income between Rs 3 lakh and Rs 6 lakh will be taxed at 5 per cent. Rs 6 to 9 lakh will be taxed at 10 per cent, Rs 9 to 12 lakh at 15 per cent, Rs 12 to 15 lakh at 20 per cent and income above Rs 15 lakh at 30 per cent.
After these modifications, the new tax regime will be more beneficial for a person who does not have a sufficient investment to claim the income tax deduction. “We have tried to make the scheme as attractive as possible, as there are no problems with it,” Gupta said. For this, taxpayers do not even need to submit any documents. Furthermore, it is easy for the tax administration to operate this scheme. “We are hopeful that the proposed new (personal income tax) scheme will get a great response,” Gupta told an event organized by industry body Assocham.
Disclaimer:Prabhasakshi has not edited this news. This news has been published from PTI-language feed.