The national budget was released, and the central government stated that it included significant relief from income tax. By the new tax law, income between Rs 3 lakh and Rs 7 lakh—previously up to Rs 6 lakh—must now be subject to 5% tax. Changes have also been made in the second slab of the new tax regime. These two modifications will benefit taxpayers to the tune of up to Rs 17,500 during ITR filing. However, no changes have been made to the old tax regime, that is, only those who adopt the new tax regime will benefit during ITR filing.
The previous tax system has not been altered,
so the only people who will profit from the new tax system are those who embrace it. Finance Minister: Direct benefit to taxpayers up to Rs 17,500. For a very long period, tax relief was demanded; this time the expectations were a bit higher. The Finance Minister did not disappoint because the new tax slab will provide some relief, even if it is small. This is a relief for those whose income is up to Rs 7 lakh. In the post-budget press conference, Finance Minister Nirmala Sitharaman said, “This change will benefit taxpayers by up to Rs 17,500.”
2020 saw the initial introduction of the new tax slab.
The majority of taxpayers did not approve of the new tax slab that the Indian government initially imposed in 2020. In 2023, that is, it was modified the previous year. There were five tax slabs instead of the previous six. Only roughly 25% of income filers had shifted to the new tax band even after that. It has changed now once more. The basic exemption ceiling has been raised to Rs 3 lakh under the new tax structure. In addition, even though it was anticipated to rise to Rs. 75 thousand, the standard deduction was raised from Rs. 50 thousand to Rs 1 lakh. The salaried class will benefit from this. Apart from this, the Finance Minister has also increased the deduction on family pension, increasing it from Rs 15 thousand to Rs 25 thousand. This will benefit 4 crore salaried employees and pensioners. The government has given the figure of giving benefits to 4 crore salaried people on family pension deduction in the budget.
The new tax slab is a new boundary that the government has drawn.
In general, there appears to have been some tax relief, albeit less than anticipated. With the new tax slab, the government has established a boundary between hope and hopelessness. By raising the standard deduction, the new tax system has provided relief to those who have embraced it, whereas the previous tax regime has left them without any money in the budget.
Read More: Do this work to know about your Income Tax Refund, check online status
|
|
  Facebook Page |
         Click Here |
|  Twitter       |
          Click Here |
| Â Instagram |
         Click Here |
