Page 31 - NIS English 16-31 February,2023

COVER STORY

First General Budget of Amrit Kaal

The changes made in personal income tax
are based on the principle of reducing the
compliance burden, promoting entrepreneurial n Income taxpayers of 'Profits from business and
profession' can change the old regime only once,
spirit, and giving tax relief to the citizens. These after which the new tax regime will be applicable to
5 announcements will become the basis of the them. Others can choose the old system each year.
country's aspirations and progress.
n Due to these exemptions and changes in the system
1. Under the new tax system, the number of of income tax, 38 thousand crore rupees will be saved
tax slabs has been reduced from 6 to 5. by the people while in some cases 3000 crore rupees
No changes have been made to the old tax will come extra to the government.
system. The exemption limit for computing n The central government brought an alternative new
income tax for income above Rs 7 lakh has tax regime in the year 2020-21.
been increased from Rs 2.5 lakh to Rs 3 lakh.
2. The benefit of the standard deduction will also
taxpayers in the new tax regime. A standard TAX BENEFITS UP TO 20-25%
be given to salaried and pensioner category

exemption of Rs 50,000 will be given to the In the new tax regime, a person with an annual
salaried and Rs 15,000 to the pensioner. Till income of up to Rs 9 lakh will have to pay only
now it was applicable only in the old system. Rs 45,000 and Rs 1.50 lakh in the case of Rs 15
Salaried employees earning Rs 15.5 lakh or lakh, which is only 5% and 10% of his income,
more will get a benefit of Rs 52,500. respectively. This income group will get the benefit
3. The Current tax rate in the country is of up to 20-25% in taxes.
42.74%, among the highest in the world.
The Budget has now reduced the highest
surcharge (on income above Rs 5 crore)
rate from 37% to 25% in the new Tax
regime. This will result in the reduction of
the maximum tax rate to 39%."
4. Tax exemption on payment received in lieu
of leave on retirement to a non-government
salaried employee has been increased from
Rs 3 lakh to Rs 25 lakh. For the first time in
20 years, the amount of this exemption was
changed.
5. The new tax regime will be kept in default
in ITR from the financial year 2023-24. The
option of availing the benefits of the old tax
regime has also been continued. In order to empower the middle class, our
government has taken many decisions in
the past years and has ensured ease of
living. We have reduced the tax rate, as well
as made the process easy, transparent, and
fast. Our government, which has always
stood with the middle class, has given huge
tax relief to the middle class.

– NARENDRA MODI, PRIME MINISTER

New India Samachar February 16-28, 2023 29