The general budget for fiscal year 2023 will be the government’s final comprehensive budget before the 2024 Lok Sabha elections. As a result, the government is making an effort to please everyone, from the paid elite to the farmers.
The overall budget for fiscal year 2023 will be presented in about three weeks. Nirmala Sitharaman, the Finance Minister, will submit her fifth budget. This will be the government’s final comprehensive budget before the 2024 Lok Sabha elections. As a result, the government is making an effort to please everyone, from the paid elite to the farmers.
On the other hand, every sector has high aspirations for the Modi administration. The Modi government has made many budget modifications in recent years.
The government made a move while keeping the tax payers in mind. However, many individuals are still confused about the issue.
In the previous tax regime, you may seek tax exemption in 7-10 different ways. The government introduced a modification in the alternative income tax system in the General Budget 2020-21.
Finance Minister Nirmala Sitharaman launched the system of new and old tax regimes in 2020-21. Each tax duo must choose one of these two options.
Meanwhile, Finance Minister Nirmala Sitharaman stated on Friday that under the prior tax scheme, persons with modest incomes could seek tax exemption in 7-10 different ways.
The government implemented a new tax system in 2020. Actually, the 2020 ‘New Tax Regime’ differs from the existing tax structure (Old Tax Regime) that has been in place since independence.
In the previous tax regime, you could claim numerous sorts of deductions such as 80C, 80D, and HRA. However, no deductions may be claimed under the new tax bracket.
Finance Minister Nirmala Sitharaman also stated that the government will implement a new system with the previous tax regime in 2020. This has no exemptions, but it is easy and the tax is lower. The Finance Minister told me that I needed to create seven slabs so that low-income individuals might pay lower taxes.
Income up to Rs 2.5 lakh is exempt from tax.
Income up to Rs 2.5 lakh is tax-free under the new regime.
Following that, 5% on income between 2.5 lakh and 5 lakh rupees, 10% on revenue between 5 lakh and 7.5 lakh rupees, 15% on income between 7.5 lakh and 10 lakh rupees, and 15% on income between 10 lakh and 12.5 lakh rupees.
20% on income between Rs 12.5 lakh and Rs 15 lakh, 25% on income between Rs 12.5 lakh and Rs 15 lakh, and 30% on income beyond Rs 15 lakh.
It is also critical to comprehend this tax system. Similarly, income up to Rs 2.5 lakh was tax-free under the previous arrangement.
Following that, a 5% tax is paid on income between Rs 2.5 lakh and Rs 5 lakh. Income between Rs 5 lakh and Rs 10 lakh is taxed at 20%, while income exceeding Rs 10 lakh is taxed at 30%.
According to Sitharaman, the previous tax regime’s benefits have not been lost; rather, the new exemption-free tax regime is an alternate version of the income tax return system.
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