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Finance Minister Nirmala Sitharaman clarified on Friday, July 14, 2023, that annual income up to Rs 7.27 lakh will not be taxed. This is because the basic exemption limit for the new income tax slabs is Rs 3 lakh, and taxpayers who opt for the new tax regime will also be eligible for a standard deduction of Rs 50,000. This means that the effective exemption limit for taxpayers who opt for the new tax regime is Rs 7.27 lakh. FM at an event in Udupi, Karnatakasaid that if your annual income
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FAQ :
Under the new tax regime, annual income up to Rs 7.27 lakh will not be taxed.
It's calculated by combining the basic exemption limit of Rs 3 lakh with a standard deduction of Rs 50,000, making the effective exemption limit Rs 7.27 lakh.
The standard deduction of Rs 50,000 is available to taxpayers who opt for the new tax regime.
Taxpayers opting for the new regime will start paying income tax on income above Rs 7.27 lakh.
If you opt for the new tax regime, you can claim the Rs 50,000 standard deduction. If you choose the old tax regime, you won't get this deduction and will pay tax on income above Rs 7.27 lakh.
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