A good news to tax payers in India
In the Union Budget for 2023-24, the government enhanced the scope of full rebate on income tax under the new tax regime from the existing Rs 5 lakh income limit to an annual taxable income of Rs 7 lakh. But if the income is more than 7 lakhs, tax should be paid for the income over and above Rs.5 lakhs.But now the government has made an amendment to the above. As per this amendment, people who are getting above Rs. 7 lakhs have to pay tax on the excess amount over and above Rs.7 lakhs.
As per the original budget a person who is having an income of Rs.7,00,500/- has to pay tax on Rs.2,00,500/-. But as per the amendment, the taxpayer has to pay tax only on Rs.500/-. But this exception will be only to the taxpayers who are opting for the new tax regime.
This may make many taxpayers shift to the new tax regime and is beneficial especially to small taxpayers.