Income Tax Slabs: Such people with income up to 7 lakhs will still not get the benefit of income tax exemption!

Income Tax Slabs. The country’s Finance Minister Nirmala Sitharaman presented the last complete budget of the second term of the Modi government. The Modi government has made major changes in the tax slab in the general budget 2023-24. Income tax exemption has now been increased from 5 lakhs to 7 lakhs. Now if your annual income is 7 lakh rupees, then you will not have to pay income tax, but the government has also stuck a screw with this exemption. Not everyone can take advantage of the exemption in this tax slab. This change has been made only in the new system. This means that those who will now opt for the tax regime, only they will get this benefit. Those who have been paying tax according to the old tax system, they will not get the benefit of income tax exemption up to 7 lakhs.

If we talk about income tax slab, then if you are earning up to Rs 3 lakh annually, then you will not have to pay tax. If you are earning 3 lakh to 6 lakh rupees annually, then you will have to pay 5 percent tax. If you are earning 6 to 9 lakh rupees annually then you will have to pay 10 percent tax and if you are earning 9 to 12 lakh rupees then you will have to pay 15 percent tax. At the same time, 20 percent tax will have to be paid on earning between Rs 12 lakh to 15 lakh and 30 percent tax on earning more than Rs 15 lakh.

Who will get the benefit of change in income tax slab?
Rahul Kumar, an expert in tax matters, says that after the year 2020, all kinds of concessions and exemptions have ended in the new system of the Modi government. Now the exemptions available in income tax returns for school fees, PPF, some categories of home loans, EPMF and LIP are also not available. However, out of 7 crore taxpayers in the country, only 5 lakh people had opted for the new system. After the change in income tax in this budget, perhaps the interest of the remaining people will also increase.

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However, under the new tax slab, now a person with an annual income of Rs 15 lakh will have to pay tax of Rs 1.5 lakh instead of Rs 1.87 lakh. That means there will be a saving of 37000. Similarly, a person with an annual income of Rs 9 lakh will now have to pay tax of Rs 45,000 only. The Modi government had implemented a new tax system in the Corona period i.e. from 1 April 2020. Under the new system, all kinds of concessions and exemptions available in income tax were abolished.

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Tags: Budget, Finance Minister Nirmala Sitharaman, income tax, Modi government