Nirmala Sitharaman: The Modi government has made many changes regarding the budget in the last few years. A change in that was made by the government keeping in mind the tax payers. But even today the situation regarding it is not clear among many people.
Union Budget Changes: About three weeks are left for the presentation of the general budget for the financial year 2023. This will be the fifth budget to be presented by Finance Minister Nirmala Sitharaman. This will be the last full budget of the government before the 2024 Lok Sabha elections. That’s why the government’s effort is also to please everyone from the salaried class to the farmers. On the other hand, every section is pinning a lot of hopes on the Modi government. In the last few years, the Modi government has made many changes regarding the budget. A change in that was made by the government keeping in mind the tax payers. But even today the situation regarding it is not clear among many people.
7-10 ways to claim tax exemption in old tax regime
This was a change in the alternative income tax regime introduced by the government in the General Budget 2020-21. The system of new tax regime and old tax regime was started in 2020-21 by Finance Minister Nirmala Sitharaman. Tax pair has to select any one of these two. Meanwhile, Finance Minister Nirmala Sitharaman said on Friday that people of low income group can claim tax exemption in 7-10 ways in the old tax regime.
Government brought second tax system in 2020
Actually, the ‘New Tax Regime’ introduced in 2020 is different from the traditional tax regime since independence. In the old tax regime, you can claim various types of deductions including 80C, 80D, HRA. But you cannot claim any kind of deduction in the new tax slab. Finance Minister Nirmala Sitharaman also said that in 2020, the government brought another system with the old tax regime. There is no exemption in this, but it is simple and the tax is less. The Finance Minister said that I had to make seven slabs so that there are low rates for the people of low income group.
Income tax free up to Rs 2.5 lakh
In the new tax regime, income up to Rs 2.5 lakh is tax free. After this, 5 percent on income from 2.5 lakh to 5 lakh rupees, 10 percent on income from 5 lakh to 7.5 lakh rupees, 15 percent on income from 7.5 lakh to 10 lakh rupees, on income from 10 lakh to 12.5 lakh rupees. 20 per cent, 25 per cent on income between Rs 12.5 lakh to Rs 15 lakh and 30 per cent on income above Rs 15 lakh.
It is also important to understand the tax system
Similarly, under the old tax regime, income up to Rs 2.5 lakh is tax free. After this, 5 percent tax is levied on income between Rs 2.5 lakh and Rs 5 lakh. Income between Rs 5 lakh and Rs 10 lakh is taxed at 20 per cent and income above Rs 10 lakh and above is taxed at 30 per cent. 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.
old tax regime
Income up to 2.5 lakhs—-0% tax
Income from Rs 2,50,001 to Rs 5 lakh —- 5% tax
Income from Rs 5,00,001 to Rs 7.5 lakh —- 20% tax
Income from Rs 7,50,001 to Rs 10 lakh —- 20% tax
Income from Rs 10,00,001 to Rs 12.5 lakh —- 30% tax
Rs 12,50,001 to Rs 15 lakh —- 30% tax
30% tax on income above Rs 15 lakh
new tax regime
Income up to 2.5 lakhs—-0% tax
Income from Rs 2,50,001 to Rs 5 lakh —- 5% tax
Income from Rs 5,00,001 to Rs 7.5 lakh —- 10% tax
Income from Rs 7,50,001 to Rs 10 lakh —- 15% tax
Income from Rs 10,00,001 to Rs 12.5 lakh —- 20% tax
12,50,001 to Rs 15 lakh —- 25% tax
30% tax on income above Rs 15 lakh
