New Tax System: Are you aware of the Income Tax Regime modifications that Finance Minister Nirmala Sitharaman has proposed for the fiscal years 2023 and 2024? In this way, one of the significant changes is the assessment discount for those with a yearly pay of up to Rs 7 lakh under the new expense system. This move aims to encourage salaried taxpayers to switch to a new tax system without investment exemptions.
Income up to Rs 3 lakh will not be taxed under the new tax system. There will be a 5% tax on income between Rs 3-6 lakh, 10% on income between Rs 6-9 lakh, 15% on income between Rs 9-12 lakh, 20% on income between Rs 12-15 lakh, and 30% on income above Rs 15 lakh. The new system will also permit a standard deduction of Rs 50,000.
Some deductions were also included in the budget for the new income tax brackets. Starting on April 1, 2023, qualified people might guarantee these allowances under the new duty system. For instance, salaried employees and pensioners can only deduct Rs 50,000 from their pay or pension income as a standard deduction. On the other hand, family pensioners are now eligible for a standard deduction of Rs. 15,000.
As a salaried employee, you are entitled to deduct contributions to your NPS account made by your employer from your gross income. This deduction can be claimed under Section 80CCD (2) of the Income Tax Act of 1961. The maximum amount that can be claimed under this clause is different for employees of the public and private sectors.
Did you had at least some idea that salaried individuals who lease their homes can take a 30 percent standard derivation from the yearly property estimation? The annual value of a property is estimated by subtracting its actual value from the amount paid in municipal taxes.
Last but not least, the government changed the Finance Bill 2023 to give “marginal relief” to taxpayers who make less than Rs 7 lakh a year. Even though the government has not established the income threshold that would qualify for marginal relief, tax experts claimed that individual taxpayers with incomes of Rs 7,27,777 or more would benefit from this relief.
The Agniveer may deduct from their income any amount paid or deposited to the Agniveer Corpus Fund in accordance with the recently proposed section 80CCH of the Income-tax Act, as stated in Budget 2023.
The funds they receive from the Agniveer Corpus Fund will not be subject to taxation for Agniveers registered in the Agnipath Scheme in 2022. The Agniveer’s commitment to their Seva Nidhi account, whether made by them or the Focal Government, is prescribed to be deducted while working out all out pay.
