Income Tax: The income tax return filing process has begun, and individuals are actively filing their returns. It is crucial for those whose income is taxable to file their income tax.
Furthermore, several changes have been introduced in income tax regulations starting from this financial year, and their impact will be noticeable on individuals. Additionally, the government has provided significant relief to the general public in tax matters.
The current income tax filing process in our country includes the New Tax Regime and the Old Tax Regime. Each regime has different tax slabs. However, significant tax relief has been provided to individuals under the new tax regime, resulting in many benefits for taxpayers. The government has also granted exemptions in tax filing, bringing relief to the taxpayers.
Income Tax Exemption details
During the presentation of Budget 2023, Finance Minister Nirmala Sitharaman announced that individuals with an annual income of up to Rs 7 lakh will not be required to pay taxes when filing income tax under the new tax regime. This means they will receive a tax discount. Additionally, under the new tax regime, there will be no tax on income up to Rs 3 lakh annually. This move aims to provide relief and benefits to individuals regarding their income tax liabilities.
New Tax Structure
Tax on up to Rs 3 lakh per annum income: 0%
Tax on up to Rs 3-6 lakh per annum income: 5%
Tax on up to Rs 6-9 lakh per annum income: 10%
Tax on up to Rs 9-12 lakh annual income: 15%
Tax on up to Rs 12-15 lakh annual income: 20
Tax on above Rs 15 lakh per annum income: 30%
Income Tax: Old Tax Regime
In addition to the new tax regime, the existing old tax regime remains unchanged. Under the old tax regime, individuals will still be exempt from paying taxes on an annual income of Rs 2.5 lakh. Moreover, people will receive tax exemptions for an annual income of up to Rs 5 lakh. These provisions in the old tax regime aim to provide relief and benefits to individuals based on their income levels.