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earn more sure amount of money They are required to file an income tax return annually. This tax is the source of Revenues for governments and this money It is used in finance public services and fulfillment government.
They are salaried employees one of major tax contributors in India. When it comes to budget, the one The thing these individuals are looking at forward To the greatest extent is the income tax deduction. Income tax slabs were not changed Since 2014 when it was basic It was the personal tax exemption limit last reviewer.
in budget 2020, presented by FM Sitharaman A new The tax system, however, it is remains my choice for taxpayers.
What are the old and new tax systems?
Common factors: Enter up Rs 2.5 lakh to Rs 2.5 lakh per annum is exempted from taxation under both schemes, while income between Rs 2.5 lakh to Rs 5 lakh per annum is taxed under rate of 5 percent.
Variations: Under new Slabs, personal income is taxed from Rs 5 lakh to Rs 7.5 lakh per annum at the rate of A rate of 10 per cent, while it is taxed at rate of 15 percent under the old system.
Income is taxed between Rs 7.5 lakh to Rs 10 lakh per annum at the rate of A rate of 15 percent under new regime. It is taxed on rate of 20 percent in Old system.
Under the old system, personal income above Rs 10 lakh per annum was taxed at the rate of A rate of 30 per cent.
However, there are three planks for Income above Rs 10 lakh in the new regime. Personal income between Rs 10 lakh and Rs 12.5 lakh is taxed in A rate of 20 per cent, between Rs 12.5 lakh to Rs 15 lakh at 25 per cent, and above Rs 15 lakh at rate of 30 per cent.
Anticipate the budget
The lowest tax one You must pay , more Income is used once one may possess. while taking advantage of Tax saving options availableand one It can save big amount of taxes.
More tax relief or rebate: In the 2023 budget, there is an expectation that government may be give Relieving individual taxpayers by raising tax credits or deduction limits. Under both the old and new tax regimes, if any total Salary of the individual below 5 lakh rupees in a yearThey are tax exempt.
However, it is a Section 87A deduction, not an exemption. If the salary exceeds Rs 5 lakh in a yearTax on All amount Except for the exemption limit of Rs 2.5 lakh will be applied. Now, there are demands for Raising the exemption limit to Rs 5 lakh.
Increasing the tax deduction limit: exist also Claims to raise the limit of deductions under Section 80c, compare with 1.5 lakh rupees currently.
Income tax deductions are linked to specific deductions for which the taxpayer is eligible for on the account of investments made (section 80c) or the amount expended (section 80d or section 80e).
the real Real estate sector also urged the government To provide a separate discount for Real estate purchases, except for section 80c. the current 80C was a limit fixed About a decade ago.
More Tax Incentives on Home Loans: the people also Expect a raise in Tax credits on home Loan principal and interest payments. Currently , maximum Tax deduction that can be claimed on a home The loan interest payment is Rs 2 lakh per financial year on Self busy property.
However, because rise in property Prices and inflation over years, there demand for tax saving cap of 2 lakh rupees on Home loans must be increased as per Section 24(b).
Long-term Capital Gains Tax Exemption (LTCG): exist also expectations that government will save long-term Capital Gains Tax Credit (LTCG) for individual mutual funds and equity investors in the market Through the 2023 budget.
work from-home Allowances and layoffs policy: In the 2023 budget experts also Hope it is government announcements It will bring some stability to the job market It was shaken by the covid-19 pandemic and the pressure was increased by inflation and fear of Recession. Industry Brothers also The center is expected to announce the regulations on Issues like Work from home allowance, notice periods, severance pay, job retention and supportand regulations for Layoffs.
In addition, the government can also issue A notice outlining the tax consequences of moon light.
more in Healthcare Expenses Deduction: Health care insurance coverage It has become essential, especially after the Covid-19 pandemic. However, the insurance costs were on the rise. with the budget 2023, common The man expects government You will consider increasing the Section 80D deduction limit, which allows for tax cuts on Health insurance premiums. more in This reduction would provide much needed relief support for individuals.
Currently, the maximum is Rs 25,000 for non-senior citizens and 50,000 rupees for senior Citizens.
Union budget 2023: date and time
Foreign Minister Sitharaman has presented the 2023-24 budget on February 1 at 11 am. This was the fifth Sitharaman in a row budget Minister of Finance for Finance year Starting April 1st. This is it also the last full budget of Central Prime Minister Narendra Modi led government Before of Lok Sabha polls for the year 2024 have been delivered in paperless forms, like the previous two.
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