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Budget 2023: Govt Enhances Income Tax Exemption Limit Up To Rs. 7 Lakh Under New Tax Regime

Budget Tax

Presenting the Budget, Nirmala Sitharaman said, โ€œThe government has proposed to reduce the highest surcharge rate from 37% to 25% under new tax regimeโ€

Mumbai: Finance Minister Nirmala Sitharaman said that under the new tax regime, the government has enhanced the income tax exemption limit up to Rs 7 lakh.

Those individuals earning between โ‚น2.5 lakh and โ‚น5 lahks have to pay a 5 percent tax. Income between โ‚น5 and 7.5 lakh is taxed at 10 percent, while those between โ‚น7.5 and 10 lakh at 15 percent. Those earning between โ‚น10 and 12.5 lakh have to pay tax at the rate of 20 percent, while those between โ‚น12.5 and โ‚น15 lakh have to pay at the rate of 25 percent. Income above โ‚น15 lakh is taxed at 30 percent.

Presenting the Budget, Nirmala Sitharaman said, โ€œThe government has proposed to reduce the highest surcharge rate from 37% to 25% under new tax regime.โ€

The income tax returns processing period has been reduced by 16 days.

Nirmala Sitharaman said, โ€œThe government has introduced new Income Tax return (ITR) forms for easier filing of returns.โ€ She added, โ€œBenefit of lower tax rate of 15% to new cooperative societies.โ€

In the last Budget no changes were announced in income tax slabs.The salaried class is currently looking forward the income tax rebate because the present income slab and the tax rates under the regular tax system have not altered since FY 2017โ€“18.

Also Read: Why Indiaโ€™s Budget Is Called A Union Budget? Which Law Plays A Key Role In Government Expenses?

The Finance Minister had, last month, defended the new income tax regime. She had stated it had not reversed any gains from the old regimeโ€™s simplicity. โ€œIf indeed there were gains of simplicity (from the old income tax regime), I want to assure they have not been reversed,โ€ Sitharaman said in New Delhi. โ€œFor every tax assessee, it has 7, 8, 9, 10 exemptions. And with all that exemptions, the rate 10, 20, 30 per cent continues. It continues even today. We have not removed it. What we have done in the name of simplicity and to avoid harassmentโ€ฆ removing harassment was what was aimed at when we brought in faceless tax assessment,โ€ she added.

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Business & Finance National

Budget 2023: Capital Investment Outlay Increases For Third Year In A Row

Ashmita Chhabria
Budget

Mumbai: The Capital Investment Outlay for the third time in a row is being increased. Finance Minister Nirmala Sitharaman announcing the Budget said, โ€œCapital investment outlay is being increased steeply for the third year in a row to Rs 10 lakh crore. The increased capital outlay for infrastructure to crowd in private investment.โ€

Speaking of steps to enhance ease of doing business, Nirmala Sitharaman said, โ€œMore than 39,000 compliances have been reduced and more than 3,400 legal provisions have been de-criminalized to improve ease of doing business.โ€

โ€œNational Data Governance policy will be introduced which will enable access to anonymized data,โ€ Sitharaman added.

โ€œKYC process will be simplified,โ€ says Nirmala Sitharaman.

Speaking of Railways, Finance Minister said, โ€œGovernment will have Capital outlay of Rs 2.40 lakh crore for railways in next financial year. This figure is nine times higher than the 2013-14 Budget.โ€

Speaking of the Jandhan scheme, Sitharaman said, โ€œAs many as 47.8 crore Jan Dhan accounts have been opened so far, a scheme which was launched in 2014 as a national mission for financial inclusion. The Jan Dhan Yojana was announced by Prime Minister Narendra Modi in his Independence Day address in 2014, and it was launched on August 28 in the same year.โ€

Speaking of green growth Finance Minister said, โ€œTarget to reach green hydrogen production of 5 MMT by 2030. Rs 35,000 crore allocated towards achieving net zero goal & energy transition.โ€

Also Read: Why Indiaโ€™s Budget Is Called A Union Budget? Which Law Plays A Key Role In Government Expenses?

PAN will be used for common identifier for all digital systems of specified government agencies says Nirmala Sitharaman. She said, โ€œThere will be a one-stop solution for the reconciliation of IDs maintained by various government agencies, the minister said. PAN will be used as a common identifier for all digital systems of specified government agencies.โ€

Speaking of commercial disputes, Finance Minister said, โ€œThe government will bring another dispute resolution scheme under Vivad Se Vishwas-2 to settle commercial disputes.โ€

The middle class in India is naturally seeking some type of income tax reduction. The restriction under 80C, which covers investments in life insurance, fixed deposits, bonds, housing, and public provident funds, had been under consideration by the Finance Ministry. If this occurs, it will promote saving and aid those whose savings were depleted at the height of the COVID-19 pandemic in building rainy day money.

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