Actually, the new Income Tax Act will be introduced in the Parliament during the budget session. This will be a new law, not an amendment to the existing Act. Recently this draft was with the Law Ministry. The main objective of the new Income Tax Act is to make the existing Income Tax Act, 1961 easy, clear and understandable.

What changes are possible in the new Income Tax law?

– The law should be written in simple language so that common people can understand it easily.
– Unnecessary and obsolete provisions will be removed.
– Tax litigation will be reduced.
– Compliance will be made easy for taxpayers.
– For this, the Income Tax Department has received 6,500 suggestions from the public and industry for these reforms.

Let us tell you, earlier Finance Minister Nirmala Sitharaman had said that more than 65 percent of taxpayers in the country have adopted the New Tax Regime, that is, 2 out of every 3 people are filing income tax under the New Tax Regime. This data has changed a lot in the last one year, because when the government implemented the New Tax Regime in Budget 2020, people were reluctant to adopt it.

New tax regime

– ₹0-₹3 lakh: Nil
₹3-₹7 lakh: 5%
₹7-₹10 lakh: 10%
₹10-₹12 lakh: 15%
₹12-₹15 lakh: 20%
Above ₹15 lakh: 30%

Old Tax Regime

– Income from Rs 0 lakh to Rs 2.5 lakh: 0%
– Income from Rs 2.5 lakh to Rs 5 lakh: 5%
– Income from Rs 5 lakh to Rs 10 lakh: 20%
– Income above Rs 10 lakh: 30%

It is worth noting that at present, under the old tax regime, there is a provision of 30% income tax on income above Rs 10 lakh, while in the new tax regime, there is a provision of 30% income tax on income above Rs 15 lakh.

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Finance Minister Nirmala Sitharaman has made major changes in the new tax regime in this budget, after which taxpayers are getting the benefit of huge rebate while paying taxes. Today we will tell you how you can take advantage of more exemption while paying tax and which tax regime is best for you.

Which tax regime to choose?

At this time, you have the option to choose the tax regime, whether you select the new tax regime or choose the old tax regime. In the new tax regime, you will get the benefit of exemption up to 7 lakhs. The new tax regime was launched by the government in the year 2020 and in this year’s budget, the Finance Minister has defaulted this tax system, after which you will have to be very careful while paying taxes.

These people will not have to pay tax in the new tax regime

Talking about the new tax regime, there will be no tax on income up to Rs 3 lakh. Along with this, those earning up to 7 lakhs will get the benefit of tax rebate, after which even those people will not have to pay tax. Along with this, the tax slab has also been reduced.

How many slabs are there in the new tax regime?

0 to ₹3 lakh = 0
₹3 lakh to ₹6 lakh = 5 per cent
₹6 lakh to ₹9 lakh = 10 per cent
₹9 lakh to ₹12 lakh = 15%
₹12 lakh to ₹15 lakh = 20 per cent
Above ₹15 lakh = 30%

Old tax regime Apart from this, if we talk about the old tax system, then those with income up to 2.5 lakh get the benefit of exemption. Apart from this, those with income between 2.5 to 5 lakh have to pay 5% tax, but these people also get the benefit of exemption of up to Rs 12,500. In this, you have to pay tax up to 5%, 20% and 30%. Let us tell you that in the old tax regime, you get the benefit of exemption under section 80C, in which you can save tax.

Tax slabs of old tax regime-

Old tax regime (for individual taxpayers below 60 years)

0 to ₹2.5 lakh = 0
₹2.5 lakh to ₹5 lakh = 5 per cent
₹5 lakh to ₹10 lakh = 20 per cent
Above ₹10 lakh = 30%

Find out how much tax will have to be paid from the tax calculator

If you also want to know where you will have to pay less tax while choosing the tax regime, then for this you can take the help of tax calculator. Let us tell you that the Income Tax Department has made the new tax regime the default, after which a calculator has also been released, so that taxpayers do not face any problem in calculation. With this, you can find out that in which tax regime, how much tax you will have to pay. Let us tell you that you will also find this calculator on the official website of Income Tax.

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A major decision has been taken by the government on the demand of restoring the old pension scheme of government employees. The Finance Ministry has constituted a committee to review the Employees’ Pension System.

This committee has been constituted under the leadership of Finance Secretary TV Somanathan. This committee will suggest whether any changes are necessary in the existing structure of the National Pension System (NPS) applicable to government employees.

Formation of a committee headed by the Finance Secretary

The committee will give suggestions on revising it with a view to improve the pension benefits of the employees covered under NPS. The committee, headed by Somanathan, will have Secretary, Department of Personnel and Training (DOPT), Special Secretary, Department of Expenditure and Chairman, Pension Fund Regulatory and Development Authority (PFRDA) as members. Finance Minister Nirmala Sitharaman had said last month that a committee headed by the Finance Secretary would look into pension related issues under NPS for government employees.

Decision after implementation of old pension from the states

This announcement by Finance Minister Nirmala Sitharaman comes after non-BJP states reinstated the Old Pension Scheme (OPS) and employee organizations in some other states demanded it. The state governments of Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh have informed the Center about their decision to restore the old pension scheme (OPS).

These states have requested the central government to return the funds collected under NPS. The finance ministry told Parliament last year that it was not considering any proposal to restore OPS in respect of central government employees recruited after January 1, 2004.

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The government has given many facilities to senior citizens, at present the Modi government has now announced to give Rs 70,500 to senior citizens. Yes… If you also want to take advantage of this, then you have a good chance.

Finance Minister had announced in the budget

Many special announcements were made in the budget by Finance Minister Nirmala Sitharaman. Now you are going to get full benefit of Rs 70,500 every month from the government. Let us tell you that many schemes are being run by the government, in which you can become a millionaire by investing money. If the benefits of these schemes are added, then according to that you can earn well every month. Let us tell you how-

There are many types of government schemes

At present, many government schemes are being run like Senior Citizen Savings Scheme (SCSS), Post Office Monthly Income Scheme (POMIS), Mahila Samman Savings Certificate (MSSC) and Pradhan Mantri Vaya Vandana Yojana (PMVVY), in which You can earn good profits by investing.

Will get Rs 70,500 every month

If you invest Rs 1.1 crore in all these schemes, a senior citizen couple will earn a monthly income of around Rs 70,500 and these are assured returns.

You can invest up to 30 lakh

in SCSS, you can invest up to 30 lakh, that is, you can deposit up to 60 lakh in a joint account and you get the benefit of interest at the rate of 8 percent. Under POMIS, you can invest up to Rs 9 lakh. Interest is available at the rate of 7.1 percent on this.

You can invest a maximum of 2 lakhs in the MSSC scheme, although this scheme is only for women . Interest is being received on this at the rate of 7.5 percent. You can invest up to 30 lakhs in the joint account of PMVVY scheme and in this you will get interest at the rate of 7.4 percent.

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Finance Minister Nirmala Sitharaman has said that it is the clear vision of the Modi government to empower the people along with improving their lives by fulfilling their basic needs. Sitharaman said at a book release function on Friday that this government has a clear perception about ‘what is empowerment’ versus ‘what is entitlement’. If you are thinking of empowering people, then there is no need for entitlement. If you meet their basic needs then people find their way to make their life better.

Watch: Smt @nsitharaman‘s full address at the launch of the book titled ‘Reform Nation’ authored by Shri @gchikermane in New Delhi. @PIB_India @MIB_India @FinMinIndia https://t.co/F6dYqHIku6

— NSitharamanOffice (@nsitharamanoffc) January 7, 2023

Income Tax

In this function, Nirmala Sitharaman said that in order to ensure low rates for the people of low income group, an alternative income tax system with seven tax slabs has been brought through the government. He said that along with the old tax system, the government has come up with an alternative system in which there is no exemption, but it is simpler and has lower tax rates. He said that in the old tax regime, each taxpayer could claim around 7-10 exemptions and the income tax rates ranged between 10, 20 and 30 per cent depending on the income bracket.

Income tax slabs

Sitharaman said, “I had to make seven slabs so that there are lower rates for people in the lower income group.” In the general budget 2020-21, an alternative income tax regime was introduced, in which individuals and Hindu undivided families (HUFs) HUF) were taxed with lower rates. However, other tax exemptions like rent allowance, housing loan interest and investment under 80C are not given in this arrangement.

There’s a clear spirit in this govt about what is empowerment vs what is entitlement. If you’re looking at empowering people, there’s no entitlement. You give them fundamental requirements & people then find their own course to improve their living.

– Smt @nsitharaman. pic.twitter.com/Xtrj0rzjOF

— NSitharamanOffice (@nsitharamanoffc) January 7, 2023

Income tax slab rate

Under this, the total income up to Rs 2.5 lakh is tax free. After this, five per cent on total income from Rs 2.5 lakh to Rs five lakh, 10 per cent on total income from Rs five lakh to Rs 7.5 lakh, 15 per cent on income from Rs 7.5 lakh to Rs 10 lakh, from Rs 10 lakh Income up to Rs 12.5 lakh is taxed at 20 per cent, income from Rs 12.5 lakh to Rs 15 lakh is taxed at 25 per cent and income above Rs 15 lakh is taxed at 30 per cent.

Income tax return

Income up to Rs 2.5 lakh is tax free even under the old tax regime. After this, income between Rs 2.5 lakh and Rs 5 lakh is taxed at 5 per cent, while between Rs 5 lakh and Rs 10 lakh, 20 per cent tax is levied. After this, income above Rs 10 lakh is taxed at 30 per cent.

Tax on income Sitharaman said that the benefits of the old tax regime have not been removed, rather the new exemption-free tax regime is an alternative form of the income tax return system. He said that to end the harassment, the tax department has made arrangements for ‘faceless’ assessment of income tax returns.

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