Reuters has given this information on Tuesday quoting two government sources. The final decision will be taken by the PMO . On the other hand, till now no official statement has come out from the Finance Ministry in this matter.

Because of this, the new tax system is not liked

In fact, the new Optional Income Tax Scheme, in which tax rules were simplified and taxation relief was also given, could not attract most of the people. Explaining this, experts say that this taxation system does not give tax exemption on rental home and insurance, among other things. One of the government sources said, “The new income tax system allowing exemptions and tax deductions would complicate it and was not the intention of launching this scheme.”

How is the new tax slab

At present, taxpayers have the opportunity to choose between the old and the new tax system. The government has not made public the figures of the number of people who will take advantage of the new tax system. Income tax in the country is levied on a minimum annual income of Rs 500,000 per year.

Those earning between Rs 500,000-Rs 750,000 per annum have to pay 10 per cent tax under the new scheme as against 20 per cent applicable under the old rules, while annual income above Rs 15 lakh is taxed at 30 per cent tax is levied.

The post Income Tax Slab Change: New planning, Center government there may be a big change on the income tax slab first appeared on Rightsofemployees.com.

In such a situation, reports are coming that the government can revise the income tax slab in the coming budget on February 1. Before the budget, there is a constant discussion about whether the government will give any relief on tax or not. A report has come on this, which can give some hope to the taxpayers. In a Reuters report, quoting government sources, it has been told that the government can reduce the tax rate in its Voluntary Income Tax Framework and can also revise the tax slab. That is, to make the new tax regime more attractive, the government can amend the income tax slab. However, the Prime Minister’s Office is yet to take a decision on this.

Income Tax Slab 2023: Finance Minister has indicated relief

Finance Minister Nirmala Sitharaman just said on the question of giving relief to the middle class in a program on Sunday that “I also come from a middle class family, I can understand their pressure.” Since then there are speculations that the government can give some relief on the tax rate.

New vs Old Tax Regime: What are the tax slabs now?

The government had optionally introduced a new tax regime in the 2020 budget, in which six new slabs were introduced – 5%, 10%, 15%, 20%, 25%, and 30%. There are three slabs in the old slab 5%, 20% and 30%, with which all the benefits of tax deduction are available, which are not available in the new tax regime, so many people do not see the new tax regime as tax relief, And most people give preference to the old regime only.

Under the new tax regime,

• There is no tax on annual income of 2.5 lakhs. 
• At the same time, 5% tax is levied on income up to 2.5-5 lakhs. 
• 10% tax on annual income of 5-7.5 lakhs, 
• 15% on income between 7.5 lakh and 10 lakh
• 20% tax between 10 to 12 lakh income
• Between 12.5 Lakh to 15 Lakh 25%
• And income above 15 lakhs is taxed at 30% annually.

The government has left it up to the taxpayer that under which tax slab they file their returns. In such a situation, when Finance Minister Nirmala Sitharaman will be presenting the budget on February 1, all the hopes of the middle class will rest on the relief in tax cuts.

The post Income Tax Slab 2023: Big news for taxpayers, government may change income tax slab in Budget 2023, tax rate will be reduced! first appeared on Rightsofemployees.com.