'Substantial changes' made in personal I-T in Budget 2023, says FM Sitharaman

Finance Minister Nirmala Sitharaman on Wednesday said the government has made the new income tax regime more attractive for taxpayers and has thus brought about substantial changes in its structure for the benefit of the middle classThe Budget 202324 has proposed changes in the optional tax regime which was introduced in 202021Speaking to reporters after presentation of the Budget Sitharaman said the country has been waiting for a direct tax regime which is simplified and easy in complianceThe personal income tax has had substantial changes in the Budget which will benefit the middle class The new taxation regime has now got greater traction and incentive so that people can now unhesitatingly move to the new regime from old the finance minister saidAs per the changes proposed in the Budget no tax would be levied on people with annual income of up to Rs 7 lakh under the new tax regime but it made no changes for those who continue in the old regime that provides for tax exemptions and deductions on investments and expenses such as HRAAlso Read First budget of amrit kaal lays foundation for developed India says PM ModiIn what is being seen as a push for the salaried class to switch to the new tax regime where no exemptions on investments are provided the finance minister in her Budget for 202324 allowed a standard deduction of Rs 50000 under the new regimeThe old tax regime provides for a similar deduction and no tax on income up to Rs 5 lakhSitharaman said the government wants to make the new tax regime attractive enough and compliance should not be burdensome on taxpayers However if someone feels the old regime is more beneficial heshe can continue in itThe ultimate interest is to make the simpler new regime more attractive Sitharaman saidRevenue Secretary Sanjay Malhotra said majority of individual taxpayers would find it more attractive to shift to the new regimeMalhotra however did not give details on the number of taxpayers who have migrated to new tax regime since 202021Under the revamped new tax regime no tax would be levied for income up to Rs 3 lakh Income between Rs 36 lakh would be taxed at 5 per cent Rs 69 lakh at 10 per cent Rs 912 lakh at 15 per cent Rs 1215 lakh at 20 per cent and income of Rs 15 lakh and above will be taxed at 30 per centI propose to extend the benefit of standard deduction to the new tax regime Each salaried person with an income of Rs 155 lakh or more will thus stand to benefit by Rs 52500 Sitharaman saidThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever