Big relief to the people before the budget. Now these people will not have to pay even a single rupee tax. Let’s check the list in the news below and know the latest update from the government.
Budget 2023: Tax experts have said that in order to make the Optional Tax Regime attractive in the upcoming general budget, PPF and other tax savings schemes
will be included in it. The deduction should be allowed. Along with this, he has also demanded to increase the limit of maximum 30% tax slab to Rs 20 lakh.
Tax slabs in the new tax system
The government had introduced the Optional Tax Regime in the General Budget 2020-21 in which Individuals and Hindu Undivided Families (HUFs) were taxed at lower rates. However, other tax exemptions like house rent allowance (HRA), home loan interest and investments under 80C, 80D and 80CCD are not given in this regime. Under this, the total income up to Rs 2.5 lakh is tax free.
Thereafter 5% on total income from Rs 2.5 lakh to Rs 5 lakh, 10% on total income from Rs 5 lakh to Rs 7.5 lakh, 15% on income from Rs 7.5 lakh to Rs 10 lakh, from Rs 10 lakh Income up to Rs 12.5 lakh is taxed at 20%, income from Rs 12.5 lakh to Rs 15 lakh is taxed at 25% and income above Rs 15 lakh is taxed at 30%. However, this scheme did not attract much attention from the taxpayers, as in many cases taxpayers had to pay more tax on adopting it.
Deductions should be included in the optional tax regime
Experts believe that in order to make the Optional Tax Regime more attractive, Finance Minister Nirmala Sitharaman should increase the limit of tax-free income and peak tax rate in the upcoming budget, as well as some popular tax deductions. should be included.
Thereafter 5% on total income from Rs 2.5 lakh to Rs 5 lakh, 10% on total income from Rs 5 lakh to Rs 7.5 lakh, 15% on income from Rs 7.5 lakh to Rs 10 lakh, from Rs 10 lakh Income up to Rs 12.5 lakh is taxed at 20%, income from Rs 12.5 lakh to Rs 15 lakh is taxed at 25% and income above Rs 15 lakh is taxed at 30%. However, this scheme did not attract much attention from the taxpayers, as in many cases taxpayers had to pay more tax on adopting it.
Rakesh Nangia, chairman of Nangia Andersen India, said that the government should make tax rates more rational in the optional tax regime. He advocated to make it in line with the previous deductions or exemptions.
This deduction can be given
Expressing a similar view, Deloitte India partner Sudhakar Sethuraman said the government may consider allowing some deductions. He said that this should be done without complicating the process. He said that life insurance premium, home loan repayment and other deductions can also be given in this scheme.
This deduction can be given-
Expressing a similar view, Deloitte India partner Sudhakar Sethuraman said the government may consider allowing some deductions. He said that this should be done without complicating the process.
He said that life insurance premium, home loan repayment and other deductions can also be given in this scheme.
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