Budget 2023: Big Tax Relief Coming For All Indians; Voluntary Income Tax Slabs Can Be Lowered?


Radhika Kajarekar

Radhika Kajarekar

Jan 22, 2023


Government sources have confirmed that the rates under the involuntary income tax framework might be reduced. 

Budget 2023: Big Tax Relief Coming For All Indians; Voluntary Income Tax Slabs Can Be Lowered?

There also is news that the slabs might be revised in the federal budget on February 1. 

Read on to find out all the details!

Government Might Reduce Voluntary Income Tax Rates

The government of India is thinking about reducing its voluntary income tax rates, and the upcoming federal budget, which is due on February 1, may include new slabs.

The Prime Minister’s Office would make the final decision, according to both sources, who wished to remain anonymous because the discussions were private.

Although the new optional income tax plan, which was announced in 2020 to simplify tax compliance, offers lower headline tax rates on annual income, experts say it is unattractive to many because it does not permit exemptions on things like housing rentals and insurance.

As per the source, “Allowing exemptions and tax deductions in the new income tax regime would make it complex and this wasn’t the intention while introducing the scheme.”

People Taking Advantage Of New Tax System

Currently, people are free to choose which set of tax rates they want to be subjected to. The number of people taking advantage of the new tax system has not been made public by the government.

The minimum annual income required to be taxed in the nation is 500,000 rupees for an individual.

In comparison to the previous set of rules, that earning between 500,000 and 750,000 rupees ($6,135.72 and $9,203.58) per year pay a 10% tax under the new scheme, while those earning over 1.5 million rupees are subject to a 30% tax rate.

In the Budget 2022, it was announced that 400 new Vande Bharat trains, and 100 Gati Shakti Cargo terminals will be developed in the next 3 years.

Chemical-free farming will be encouraged, and special subsidies to be provided, especially within the 5 kms-corridor of the Ganges

It was also announced that taxpayers can file updated returns within 2 years of assessment year


Radhika Kajarekar
Radhika Kajarekar
  • 555 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online