Nirmala Sitharaman said, “The personal income tax has had substantial changes (in the Budget) which will benefit the middle class”
Mumbai: Union Finance Minister Nirmala Sitharaman today announced the Union Budget for fiscal year 2023-24. New taxation regime was announced in the Budget. New one has received greater incentives so that people can unhesitatingly move from the old taxation regime. At media briefing after announcing the Budget, Finance Minister stressed that the government is not compelling anyone to move to the new taxation regime. Those who want to remain with old taxation regime can stay with it she added.
Addressing the reporters present at media briefing, Sitharaman said, “The personal income tax has had substantial changes (in the Budget) which will benefit the middle class. The new taxation regime has now got greater traction and incentive so that people can now unhesitatingly move to the new regime from old.”
“We are not compelling anybody. Those who want to remain in the old (taxation regime) can still remain there. But the new one is attractive because it gives a greater rebate. It also provides for simplified and smaller slabs, smaller lower rates of taxation and also slabs which are nicely broken down,” she added.
Also Read: Budget 2023: Govt Enhances Income Tax Exemption Limit Up To Rs. 7 Lakh Under New Tax Regime
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 ₹2.5 lakh and ₹5 lahks have to pay a 5 percent tax. Income between ₹5 and 7.5 lakh is taxed at 10 percent, while those between ₹7.5 and 10 lakh at 15 percent. Those earning between ₹10 and 12.5 lakh have to pay tax at the rate of 20 percent, while those between ₹12.5 and ₹15 lakh have to pay at the rate of 25 percent. Income above ₹15 lakh is taxed at 30 percent.
Presenting the Budget, Nirmala Sitharaman said, “The government has proposed to reduce the highest surcharge rate from 37% to 25% under new tax regime.”
The income tax returns processing period has been reduced by 16 days.
Nirmala Sitharaman said, “The government has introduced new Income Tax return (ITR) forms for easier filing of returns.” She added, “Benefit of lower tax rate of 15% to new cooperative societies.”
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