Income Tax Slab: Important news for taxpayers. At present, taxpayers have the opportunity to choose between the old and the new tax system. The government has not made public the figures of the number of people who will take advantage of the new tax system.
The Government of India is considering reducing the rates under its Voluntary Income Tax Framework. Revised tax slab can be introduced in the upcoming Budget 2023 on February 1. Reuters has given this information on Tuesday quoting two government sources. The final decision will be taken by the PMO. On the other hand, till now no official statement has come out from the Finance Ministry in this matter.
Because of this, the new tax system is not liked
In fact, the new Optional Income Tax Scheme, in which tax rules were simplified and taxation relief was also given, could not attract most of the people. Explaining this, experts say that this taxation system does not give tax exemption on rental home and insurance, among other things. One of the government sources said, “The new income tax system allowing exemptions and tax deductions would complicate it and was not the intention of launching this scheme.”
How is the new tax slab
At present, taxpayers have the opportunity to choose between the old and the new tax system. The government has not made public the figures of the number of people who will take advantage of the new tax system. Income tax in the country is levied on a minimum annual income of Rs 500,000 per year.
Those earning between Rs 500,000-Rs 750,000 per annum have to pay 10 per cent tax under the new scheme as against 20 per cent rate applicable under the old rules, while annual income above Rs 15 lakh is taxed at 30 per cent tax is levied.
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