Finance Minister Nirmala Sitharaman will present the interim budget on February 1. Taxpayers may get good news in this. Under the new tax regime, the tax rebate limit can be increased. Currently no tax has to be paid on annual income up to Rs 7 lakh.
New Delhi: Finance Minister Nirmala Sitharaman will present the interim budget on February 1. In this, taxpayers can get good news in the election year. According to media reports, under the new income tax regime, the exemption limit can be increased from Rs 7 lakh to Rs 7.5 lakh. If this happens then no tax will have to be paid on income up to Rs 8 lakh. This also includes a standard deduction of Rs 50,000. For this, changes can be made in the finance bill. In last year’s budget, the exemption limit under the new tax regime was increased from Rs 5 lakh to Rs 7 lakh. Besides, the number of income tax slabs was also reduced from seven to six.
Quoting sources in the business newspaper Mint, it has been claimed that relief can be given to taxpayers in the interim budget. A source said, ‘Its purpose is to give tax benefits to hard-working middle class people. Some changes may be made in the full budget to be presented after the elections. A finance bill for this proposal can be brought in the interim budget to be presented on February 1. Along with increasing the scope of tax receipts, the central government is working to reduce the tax burden on taxpayers. A record 8.18 crore people filed ITR in the assessment year 2023-24, which is nine percent more than last year.
Old vs new tax regime
The new tax regime was first announced in Budget 2020. The Finance Ministry has implemented both the New Tax Regime and the Old Tax Regime for the financial year 2023-24. Taxpayers can choose either of the two options to file ITR and avail tax exemption. However, the new tax regime has been kept the default. If you want to avail the benefits of the old tax regime then it is important to choose it. So, if you have not informed your company about your preference, you will now be taxed under the new tax regime.
