Income Tax Slab: The government on Friday gave some relief to the taxpayers who opted for the new tax system. Amending the Finance Bill, it has been arranged that only extra income can be given to people earning a little more than the tax free income of Rs 7 lakh. But only tax has to be paid.
Rebate on Income Tax: There is big news for taxpayers. The Lok Sabha on Friday passed the Finance Bill 2023 with 64 official amendments. In the amendments that have been approved, relief has been given to taxpayers adopting the new tax system. Apart from this, the formation of GST Appellate Tribunal, withdrawal of long-term tax benefits from certain categories of mutual funds investing in bonds is included.
The government on Friday gave some relief to taxpayers opting for the new tax system. Amending the Finance Bill, it has been provided that people earning income slightly above the tax-free income of Rs 7 lakh will have to pay tax only on the extra income. Will happen.
Taxpayers got this relief
The Finance Ministry said that the new tax system will be implemented from April 1. Explaining the provision, the Finance Ministry said that under the new tax system, if a taxpayer’s annual income is Rs 7 lakh, then he will not have to pay any tax. But if the income is Rs 7,00,100, then tax of Rs 25,010 has to be paid on it. Due to this extra income of Rs 100, taxpayers have to pay tax of Rs 25,010.
That’s why an attempt has been made to give relief to taxpayers through amendment. So that the tax paid by the person should not exceed the income increased from the tax free income of seven lakhs. In this case, the income above seven lakhs is Rs 100, so tax should also be levied on the same amount.
What did tax experts say
According to tax experts, individual taxpayers whose income will be up to Rs 7,27,777 can get the benefit of this provision. Other amendments include increasing the tax rate on royalties and fees for technical services from 10 per cent to 20 per cent.
All 64 amendments to the Finance Bill were passed by voice vote. It will take the form of law after it is passed in the Rajya Sabha and approved by the President. Under the amendments made in the Finance Bill, from April 1, short-term capital gains tax will be levied on mutual funds investing in bonds or fixed income products. Till now investors used to get long term tax benefits on this and due to this this investment was popular.
Currently, investors investing in mutual funds linked to bonds or fixed income products pay tax on capital gains for three years. After three years, these funds pay 20 per cent without the effect of inflation or 10 per cent with the effect of inflation. In 2014, the government had changed the tax system on mutual funds investing in bonds. The time limit for short term gains was increased to three years and the tax rate was increased to 20 percent.
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