Budget 2023: The job profession is expecting an increase in the income tax exemption limit this time. Meanwhile, Finance Minister Nirmala Seemaraman has given a big statement regarding tax exemption. Sitharaman said, I had to make seven slabs so that there would be lower rates for the people of low income group.
FM Nirmala Sitharaman: As the date of presentation of the budget of the year 2023 is coming closer, the movement of tax exemption is increasing. The job profession is expecting an increase in the income tax exemption limit this time. Meanwhile, Finance Minister Nirmala Seemaraman has given a big statement regarding tax exemption. He told that the optional income tax system with seven tax slabs was brought by the government so that people of low income group have to pay less tax. Sitharaman said that in the old tax regime, every taxpayer can claim exemption in about 7-10 ways.
No discount in the new system
In the old tax regime, the income tax rates ranged between 10, 20 and 30 percent depending on the income limit. The minister said that along with the old tax regime, the government has come up with another system, in which there is no exemption, but it is simple and the tax is less. Sitharaman said, ‘I had to make seven slabs so that there are lower rates for the people of low income group.’
Alternative income tax regime was introduced in the budget 2020-21
The Finance Minister was speaking on the occasion of the release of the book ‘Reform Nation’ by Gautam Chikramane, Vice President of Observer Research Foundation on Friday. During this, he said, the government had introduced an alternative income tax regime in the General Budget 2020-21, under which individuals and Hindu Undivided Families (HUFs) were taxed with lower rates. However, other tax exemptions like rent allowance, housing loan interest and investment under 80C are not given in this arrangement.
Let us tell you that tax payers have been demanding from the government for a long time to increase the income tax exemption limit from Rs 2.5 lakh to Rs 5 lakh. Along with this, there is also a demand to increase the investment limit under 80C. It will be a matter to be seen which demands are considered by the government and can be announced in the budget on 1st February.
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