Income Tax Slab: Budget 2023 is to be presented in a few days. However, before this, Union Finance Minister Nirmala Sitharaman has listed the achievements of the Modi government and told what she has done regarding income tax in the budget during the tenure of the Modi government.
Finance Minister Nirmala Sitharaman has said that it is the clear vision of the Modi government to empower the people along with improving their lives by fulfilling their basic needs. Sitharaman said at a book release function on Friday that this government has a clear perception about ‘what is empowerment’ versus ‘what is entitlement’. If you are thinking of empowering people, then there is no need for entitlement. If you meet their basic needs then people find their way to make their life better.
Watch: Smt @nsitharaman‘s full address at the launch of the book titled ‘Reform Nation’ authored by Shri @gchikermane in New Delhi. @PIB_India @MIB_India @FinMinIndia https://t.co/F6dYqHIku6
— NSitharamanOffice (@nsitharamanoffc) January 7, 2023
Income Tax
In this function, Nirmala Sitharaman said that in order to ensure low rates for the people of low income group, an alternative income tax system with seven tax slabs has been brought through the government. He said that along with the old tax system, the government has come up with an alternative system in which there is no exemption, but it is simpler and has lower tax rates. He said that in the old tax regime, each taxpayer could claim around 7-10 exemptions and the income tax rates ranged between 10, 20 and 30 per cent depending on the income bracket.
Income tax slabs
Sitharaman said, “I had to make seven slabs so that there are lower rates for people in the lower income group.” In the general budget 2020-21, an alternative income tax regime was introduced, in which individuals and Hindu undivided families (HUFs) HUF) 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.
There’s a clear spirit in this govt about what is empowerment vs what is entitlement. If you’re looking at empowering people, there’s no entitlement. You give them fundamental requirements & people then find their own course to improve their living.
– Smt @nsitharaman. pic.twitter.com/Xtrj0rzjOF
— NSitharamanOffice (@nsitharamanoffc) January 7, 2023
Income tax slab rate
Under this, the total income up to Rs 2.5 lakh is tax free. After this, five per cent on total income from Rs 2.5 lakh to Rs five lakh, 10 per cent on total income from Rs five lakh to Rs 7.5 lakh, 15 per cent 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 per cent, income from Rs 12.5 lakh to Rs 15 lakh is taxed at 25 per cent and income above Rs 15 lakh is taxed at 30 per cent.
Income tax return
Income up to Rs 2.5 lakh is tax free even under the old tax regime. After this, income between Rs 2.5 lakh and Rs 5 lakh is taxed at 5 per cent, while between Rs 5 lakh and Rs 10 lakh, 20 per cent tax is levied. After this, income above Rs 10 lakh is taxed at 30 per cent.
Tax on income Sitharaman said that the benefits of the old tax regime have not been removed, rather the new exemption-free tax regime is an alternative form of the income tax return system. He said that to end the harassment, the tax department has made arrangements for ‘faceless’ assessment of income tax returns.
