Quick Summary
The government has provided additional relief to taxpayers under the new income tax regime by tweaking it so that those earning over the tax-free limit of Rs 7 lakh per annum do not end up paying tax in excess of their incremental income over the threshold. The decision is likely to further sweeten the new tax regime, particularly for small taxpayers. In the Union Budget for 2023-24, the government expanded the scope of full rebate on income tax under the new tax regime to an annual taxab
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 011-411-70713
FAQ :
The government has amended the Finance Bill so that taxpayers earning marginally over Rs 7 lakh per annum will not have to pay tax exceeding their incremental income above the Rs 7 lakh threshold.
Individual taxpayers whose annual taxable income is just over Rs 7 lakh will benefit from this additional relief under the new tax regime.
Before the amendment, if a taxpayer earned even slightly more than Rs 7 lakh, they were liable to pay tax on income slabs below Rs 7 lakh, meaning their total tax liability could exceed the amount they earned over the Rs 7 lakh threshold.
The scope of full rebate on income tax under the new tax regime was expanded to Rs 7 lakh annually in the Union Budget 2023-24, up from Rs 5 lakh previously. This amendment further refines the tax calculation for those just above this limit.
Yes, individuals with an annual income of over Rs 5 crore will see a reduction in the income tax surcharge to 25 percent from 37 percent under the new regime.
CAclubindia
