The Lok Sabha has approved the Finance Bill 2023. In this, through amendment, some relief has been given to the taxpayers under the new tax regime. The new tax regime will come into effect from April 1.

No tax up to Rs 7,00,000

Explaining the provision, the Finance Ministry said that under the new tax regime, if a taxpayer has an annual income of Rs 7,00,000, he does not have to pay any tax, but if the income is Rs 7,00,100, then 25,010 Have to pay tax of Rs. Due to this additional income of Rs 100, the taxpayers have to pay tax of Rs 25,010. Therefore, a marginal relief has been proposed, so that the tax payable by the person should not exceed the increased income from the tax free income of Rs.7,00,000. In the above case, the income in excess of Rs.7,00,000 is Rs.100, so the same amount should be charged to tax.

Finance Bill amended to provide relief to taxpayers

Sandeep Jhunjhunwala, partner at Nangia Andersen LLP, said the amendment in the Finance Bill has been made to provide some relief to individual taxpayers whose income is marginally higher than the tax free income. In the budget for the financial year 2023-24, it was announced that the taxpayers adopting the new tax regime, whose annual income is up to Rs 7,00,000, will not have to pay tax. Experts believe that this step was taken to motivate the salaried class taxpayers to adopt the new tax regime. No exemption is given on investment in the new tax regime.

Who will get relief

Now the government has made up its mind to give some more relief to these taxpayers through amendment in the Finance Bill. However, the government has not mentioned to what extent taxpayers having income above Rs 7,00,000 would be eligible for this relief. Tax experts have calculated that individual taxpayers whose income is up to Rs 7,27,777 can get the benefit of this provision.

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For this, amendments have been made in the Finance Bill. In the amendment, it has been provided that persons earning income slightly more than the tax free income of Rs 7 lakh will have to pay tax only on the additional income.

The Lok Sabha has approved the Finance Bill 2023. In this, some relief has been given to taxpayers under the new tax regime through amendment. The new tax regime will come into effect from 1 April.

These taxpayers will get relief

Explaining the provision, the Finance Ministry said that under the new tax regime, if a taxpayer has an annual income of Rs 7 lakh, then he would not have to pay any tax. But if the income is Rs 7,00,100, then tax of Rs 25,010 has to be paid on it. Due to this additional income of Rs 100, taxpayers have to pay tax of Rs 25,010.

That is why it has been proposed to give a minor relief so that the tax paid by the person should not exceed the increased income from tax free income of Rs 7 lakh. In this case, the income in excess of Rs 7 lakh is Rs 100, so tax should also be levied on the same amount.

Sandeep Jhunjhunwala, partner at Nangia Andersen LLP, said the amendment in the Finance Bill has been made to provide some relief to individual taxpayers whose income is marginally higher than the tax free income.

Income tax free up to Rs 7 lakh

In the budget for the financial year 2023-24, it was announced that taxpayers adopting the new tax regime, whose annual income is up to Rs 7 lakh, will not have to pay tax. Experts believe that this step was taken to motivate the taxpayers of the salaried category to adopt the new tax regime.

No exemption on investment in new tax regime

No exemption is given on investment in the new tax regime. Now the government has made up its mind to give some more relief to these taxpayers through amendment in the Finance Bill. However, the government has not mentioned how much taxpayers with income above Rs 7 lakh will be eligible for this relief. Tax experts have told according to the calculation that individual taxpayers whose income will be up to Rs 7,27,777 can get the benefit of this provision.

The post New Tax Regime Change: Big relief to taxpayers! These taxpayers will not be taxed on income above ₹ 7 lakh first appeared on Rightsofemployees.com.

There was a demand from the MPs of the opposition parties that a JPC should be constituted regarding this matter. The Finance Bill 2023 was passed amid much hue and cry. During this, Finance Minister Nirmala Sitharaman said that there is a need to improve the National Pension System implemented for government employees.

Will be formed under the leadership of the Finance

Secretary The Finance Minister said that I propose to constitute a committee to look into the matter related to the pension of government employees. This committee will be constituted under the leadership of the Finance Secretary. Earlier, he said that such representations have been received that there is a need for reform in the National Pension System (NPS) applicable to government employees. Apart from this, the Finance Minister said that credit card payments are not being accepted on foreign visits under the Liberalized Remittance Scheme (LRS). This should also be seen by RBI.

Finance Bill 2023 proposes to exempt from capital gains tax debt

mutual funds that invest less than 35 percent of their assets in equity, according to reports. It is proposed to keep such investors separate from long term capital gains tax. In this way only short term capital gain tax will be applicable on mutual funds. Holders of such mutual fund schemes, who invest 35 per cent of their assets in equity shares after getting the approval of the House, will be taxed as per the slab.

Demand to restore the old pension scheme

Let us tell you that there is a demand from the central and state government employees to restore the old pension scheme. The old pension (OPS) has been restored by the governments of Himachal Pradesh, Punjab, Chhattisgarh, Rajasthan and Jharkhand. Employees of some other states are planning to go on strike demanding restoration of old pension. Meanwhile, a strict warning has been issued by the Central Government for the employees. On behalf of the central government, a warning was given to protest or sack the employee who went on strike.

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