Here is a piece of good news for the lakhs of taxpayers, if they fall in certain tax buckets and still have not filed your ITR yet then this news is definitely for them as they need not to pay any tax.
Yes, you read right! Now these people will not have to worry about the heavy tax burden as there will be no income tax applicable on their income.
No need to Pay Income Tax Under This Category
During the budget this year, the Finance Minister, Nirmala Sitharaman has made many big announcements regarding tax.
Let’s see how this is possible for you.
As we all know that the new financial year has already started from the month of April.
With this beginning, many rules related to tax were also changed.
If you are taking advantage of the new tax regime, then now you will definitely get the benefit of more exemptions.
Along with this, you can also get relief from paying tax.
The income up to Rs 7 lakh has been made tax free as per the new tax regime.
This simply means that if your earnings are equal or less than Rs 7 lakh annually then income tax is not applicable on your income, so you do not have to pay any tax.
Getting the Benefits From Standard Deduction
Earlier, the limit of the standard deduction of Rs 50,000 was available only under the old regime till FY 2022-23.
During the Budget 2023, Finance Minister Nirmala Sitharaman has come up with another important announcement regarding people not getting the benefit of standard deduction in the new tax regime.
According to this, Nirmala Sitharaman stated that from now on, even in the new tax regime, salaried and pensioners will get the benefit of standard deduction of Rs 50,000, while presenting the Budget 2023.
Other Major Announcement In New Tax Regime
It is noteworthy here that if your annual income in the financial year 2023-24 is Rs 7 lakh and if you choose the new tax regime, then you will not have to pay any tax.
This is due to the fact that under the new tax regime, the tax exemption available under Section 87A of the Income Tax Act has been increased from Rs 12,500 to Rs 25,000.
Besides this, the leave encashment exemption also increased for non-government employees.
It is now exempted up to a limit of Rs 25 lakh, a much bigger hike from the earlier Rs 3 lakh since 2002.