While revising the new tax regime in the budget, the Finance Ministry has changed the tax slabs and rates. Apart from this, taxpayers will also get the benefit of some deductions.
New Delhi. Finance Minister Nirmala Sitharaman presented the country’s general budget (Union Budget 2023) on 1 February. Many big announcements have been made in this budget. The Finance Minister gave great news to the taxpayers in the budget.
The government has taken several steps to make the new tax regime attractive. Income up to Rs 3 lakh was exempted and the rebate was extended up to Rs 7 lakh. At the same time, changes have also been made in income tax slabs and rates.
Apart from this, there are also some deductions which can be availed in the new tax regime. Taxpayers will be able to claim it from April 1, 2023.
Standard Deduction
Standard deduction is available to taxpayers having income from salary or having pension income. Salaried, pensioners and family pensioners can get the benefit of standard deduction.
These people can claim standard deduction of Rs 50,000. It can be claimed without giving any documents to the company. In the new tax regime, a deduction of Rs 15,000 has been proposed in the case of family pensioners.
NPS Contribution
If the company is contributing to the NPS account, then the salaried employees can claim the deduction. This deduction will be available on the contribution made from gross income. Private sector employees can claim a maximum deduction of up to 10 per cent of their salary and in the case of government employees up to 14 per cent of the salary.
Contribution to Agniveer Corpus Fund
It has been announced to make the amount received from the Corpus Fund tax free for the Agniveers. Income tax exemption will be available on the amount deposited in Agniveer Corpus Fund.
