Finance Minister Nirmala Sitharaman presented the last complete budget of the second term of the Narendra Modi government in Parliament. Nirmala Sitharaman has said that this is the first budget of Amritkal. During the budget, the Finance Minister has made a big announcement regarding the tax slab. Income tax exemption has been increased from 5 lakh to 7 lakh. At the same time, according to the annual earnings, the tax rates have also been changed. However, this change has been made in the new tax system. That is, those who will opt for the new tax system, only they will get this exemption. Those who claim deduction under the old tax regime, they will not get the benefit of tax exemption on income up to 7 lakhs.
According to the new income tax rates, no tax will have to be paid on annual income up to three lakhs. On the other hand, 5% tax was levied on annual income of 3 to 6 lakhs, 10% on annual income of 6 to 9 lakhs, 15% on income of 9 to 12 lakhs, 20% on income of 12 to 15 lakhs and 30% on income of more than 15 lakhs. Will go.
It may be known that the new tax system was implemented by the central government on April 1, 2020. New tax slabs were created in the new tax system, but all the deductions and exemptions available in income tax were abolished.
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In the new tax system that the government brought in 2020, all tax exemptions like standard deduction, HRA and LTA were abolished. Apart from this, tax exemption available in EPF, LIP, school fees, PPF, home loan repayment, ELSS is also not available under 80C. According to experts, out of 7 crore taxpayers, only 5 lakh people had opted for the new tax regime. But now after the change in the tax slab, perhaps people’s interest in it will increase. The new tax system is also better for those who do not want to invest in schemes like PPF, NPS and do not want to claim all the deductions.
Seven income slabs were created in the new tax system that came in 2020. According to which, those whose annual income is up to 2.5 lakhs, they do not have to pay tax. Those whose income is 2.5 lakh to 5 lakh, they have to pay 5% tax and those whose annual income is 5 lakh to 7.5 lakh, they have to pay 10% tax. While 15% income tax has to be paid on the annual income of 7.5 to 10 lakhs. 20% tax has to be paid on annual income of 10 lakh to 12.5 lakh, 25% on annual income of 12.5 to 15 lakh and 30% on annual income of more than 15 lakh.
What did experts say on the new change
India Today Group Editorial Advisor Rohit Saran termed the Narendra Modi government’s announcement of change in tax slabs as beneficial. However, Rohit Saran said that this announcement is beneficial only for those people who are paying income tax through the new tax system. He told that in this new tax system, people have to pay less tax but for that they have to give up many other exemptions.
Rohit Saran said that it is a very confusing decision of the Central Government to continue the two tax system. Rohit Saran further said that the central government wants to stop the previous tax system and the special thing is that it wants to do this with the announcement of exemption in the new tax system. But its effect is not visible.
On the other hand, on this announcement of the Central Government, Dr. Ravi Kumar, CEO of Know The Pulse and Koobera Group, said that everyone was waiting for this change in the tax slab. The common man will be benefited by this. He further said that it is a good thing to have income tax free up to 7 lakhs. At the same time, there has been a change in most of the slabs, which is also a good news.
Such reaction is being received on social media
After the change in the income tax slab of the Narendra Modi government in Budget 2023, users are expressing happiness on social media. A user has said, “Increased income tax exemption from 5 lakh to 7 lakh. Modi ji has made the entire middle class happy.
— Santosh Mishra (@Mishra___S) February 1, 2023
At the same time, another user said that people earning up to seven lakhs annually will not have to pay income tax, but in the new tax system.
People earning up to ₹7L won’t have to pay any Personal Income Tax
But in the New Tax Regime
This is good!#BudgetWithKB
— CA Kanan Bahl (@BahlKanan) February 1, 2023
While giving information about the new tax slab, a user said that the one who is earning Rs 15 lakh annually, will have to pay Rs 1.5 lakh as income tax.
proposed personal #IncomeTax rebates upto 7 lakhs.
0-3 nil
3-6 5%
6-9 10%
9-12 15%
12-15 20%#if you earn 15lakhs; you pay 1.5 lakh tax. #middleclass #india #budget #UnionBudget2023 pic.twitter.com/peI89ZBUpY— Keval (@Keval5571) February 1, 2023
At the same time, a user says that the middle class will not get any benefit from this change in tax slab.
All in all, no benefit for salaried middle class. My gross salary income falls between 9-12 slab, just calculated with new regime rates and the tax liability actually increased by 7K as compared to old regime.
But IT cell propaganda will tell you otherwise.#UnionBudget2023 https://t.co/4Vrz2pe3Nx— ₳mit (@iamitsk) February 1, 2023
A user tweeted this while comparing the old tax rate to the new one.
Tax rates for New Tax regime (tax paid)
Before Now
07 Lakhs – 33,800 000
09 Lakhs – 62,400 46,400
10 Lakhs – 78,000 62,400
12 Lakhs – 1,19,600 93,200#BudgetSession2023
— Megh Updates 🚨™ (@MeghUpdates) February 1, 2023
See below some funny reactions of people
Me feeling happy with Rs 575- in my account, after Income tax- rebate extended on income from Rs 5 Lakhs to Rs 7 Lakhs.#Budget2023 pic.twitter.com/HSfudD9f7p
— Krishna (@Atheist_Krishna) February 1, 2023
Income upto ₹7 lacs exempt from income tax! #Budget2023#MiddleClass pic.twitter.com/gaZcN6sagV
— Kamal Vedā / Kamal Veda (@iKamalVeda) February 1,
#middleclass pic.twitter.com/htOOdnes8o
— Kadak (@kadak_chai2) February 1,
This user shared funny meme
General public after the news of deduction of tax on income of 7 lakhs instead of 5 lakhs
Dr. Vivek Bindra (@DrVivekBindra) February 1, 2023
A user wrote that if someone chooses the old tax system and claims all kinds of deductions, then he also gets a rebate of up to 7 lakhs.
— Ari (@wolfgang598) February 1, 2023