Relief for Taxpayers: Government Proposes Tax Exemption on SlightlyHigher Income
Image Source: Business League
The Modi government has offered further relief to taxpayers with an amendment in the Finance Bill 2023.
After the announcement of major changes in the income tax slab in Budget 2023, the Finance Ministry has proposed tax exemption on income slightly above the tax-free income of Rs 7 lakh. The taxpayers will only have to pay tax on the additional income earned above the threshold limit. Previously, if a taxpayer’s annual income was Rs 7 lakh, they were exempt from tax liability. However, if their income was Rs 7,00,100, they would have to pay a tax liability of Rs 25,010. The proposed amendment will offer minor relief to such taxpayers. For instance, individuals whose income is up to Rs 7,27,777 can benefit from this provision.
Under the new proposal, if an individual’s income is Rs 7,00,100, they will only have to pay tax on the additional Rs 100, and not the entire tax liability of Rs 25,010. The Finance Ministry has clarified that the amendment is intended to alleviate the problems of taxpayers with minor additional income. The new tax regime offers an additional benefit of Rs 2 lakh to individuals earning up to Rs 7 lakh, as announced by Finance Minister Nirmala Sitharaman in Budget 2023.
Re-Repoted from the story originally published in Business League
