At this time, everyone’s eyes are on any news related to the budget or the demand made by different sectors to the Finance Minister. From job professionals to farmers, everyone’s eyes are on the budget. Due to the last full budget of the government before the Lok Sabha elections, the general public has a lot of expectations from it.

Less tax for low income earners In this budget, along with increasing the income tax exemption limit, the standard deduction limit is also expected to be increased. At present, there are two regimes of income tax exemption. First new tax regime and second old tax regime. Finance Minister Nirmala Sitharaman recently said during a program that the optional income tax system with seven tax slabs was brought in so that low income earners have to pay minimum tax.

No exemption in the new tax regime

Sitharaman told that in the old tax regime, you can claim income tax exemption in different ways. In this, tax payers can claim exemption in 7-10 ways. In this, tax has to be paid at the rate of 10, 20 and 30 percent. Along with the old tax regime, the government has brought a new tax regime, there is no exemption from tax in this. But the tax rate is less in this.

4 slabs in Old Tax Regime The Finance Minister said that there are 7 tax slabs in the New Old Regime, while there are 4 slabs in the Old Tax Regime. Old tax regime is better for low income group people. In this, you can save tax in 7 ways including house rent allowance, home loan interest, 80C and medical insurance. The Finance Minister also said that he had to make seven slabs so that there would be lower rates for the low income group people. Let us know the rates of old tax regime-

Old Tax Regime-

Rs 0 – Rs 2,50,000 – Zero Tax Rs
2.5 Lakh to Rs 5 Lakh – 5 Percent Tax Rs 5 Lakh
to Rs 10 Lakh – 20 Percent Tax
Rs 10 Lakh to Rs 15 Lakh or above – 30 Percent Tax

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The Finance Ministry said in a statement that now the statement in Form No. 67 can be submitted on or before the end of the relevant assessment year. Taxpayers filing Income Tax Return (ITR) within the stipulated time can claim credit for tax paid outside India till the end of the assessment year.

The Income Tax Department also made a tweet about this. It added that the details to be furnished in Form No. 67 can now be furnished till the end of the relevant tax assessment year. Till now, credit of tax deposited abroad (FTC) could be taken only if Form-67 along with the required documents was submitted within the stipulated time.

Due to this provision, the ability to claim tax for tax paid outside India would have been limited. Keeping in mind the problem of when it will be implemented , the Central Board of Direct Taxes (CBDT) has now given relief to taxpayers by changing the provisions related to claiming for FTC.

The special thing is that the CBDT has decided to implement this amendment from the retrospective date i.e. April 1, 2022. Due to this, this facility can be availed on all FTC credit claims submitted in the current financial year.

That is, it will be applicable to all claims of foreign tax credit filed during the financial year 2022-23. The last date for filing Income Tax Return (ITR) has passed last month. More than 5 crore taxpayers have filed tax returns till the last date. After that 120 days have been given to verify the ITR.

Those who file ITR on or after August 1, will have to verify ITR within 30 days. If not verified, ITR will be considered invalid and refund money will not be received.

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