Budget 2023: In a big relief for the common man, the Modi government on Wednesday increased the personal income tax rebate to Rs 7 lakh per annum. The income tax rebate is one of the 5 major announcements made by Finance Minister Nirmala Sitharaman in the first budget of 'Amrit Kaal'. Sitharaman tweaked the slabs to provide some relief to the middle class by announcing that no tax would be levied on annual income of up to Rs 7 lakh under the new tax regime. She also allowed a Rs 50,000 standard deduction to taxpayers under the new regime, where assessees cannot claim deductions or exemptions on their investments. The union minister also tweaked the concessional tax regime, which was originally introduced in 2020-21, by hiking the tax exemption limit by Rs 50,000 to Rs 3 lakh and reducing the number of slabs to five. With effect from April 1, these slabs will be modified as per the Budget announcement. FULL COVERAGE
5 major announcements by Nirmala Sitharaman on Income Tax in Budget 2023:
1) New personal Income Tax slabs:
- 0 to Rs 3 lakhs - Nil
- Rs 3 to 6 lakhs - 5%
- Rs 6 to 9 Lakhs - 10%
- Rs 9 to 12 Lakhs - 15%
- Rs 12 to 15 Lakhs - 20%
- Above 15 Lakhs - 30%
2) An individual with an income of Rs 15 lakh will have to pay Rs 1.5 lakh tax down from Rs 1.87 lakh under the new tax structure.
3) The government has proposed to reduce the highest surcharge rate from 37 per cent to 25 per cent in the new tax regime.
4) The government has also proposed to reduce highest surcharge rate from 37 per cent to 25 per cent in the new tax regime.
5) The Modi government has made the new tax structure a default tax scheme.
The Finance Minister said the Budget for 2023-24 hopes to build on the foundation of the previous budget and blueprint for India@100. This is the first Budget in Amrit Kaal, she said.
This is the last full Budget of the second term of the BJP-led NDA government ahead of the general elections in 2024.
Reacting to the Modi government's budget, Congress MP Karti Chidambaram said, "I am a believer in a low tax regime. So, any tax cuts are welcome because giving more money into the hands of the people is the best way to boost the economy."
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