Sitharaman Announces Income Tax Exemption for Individuals Earning up to Rs 7.27 Lakh
The Finance Minister, Nirmala Sitharaman, has announced that individuals with an annual income of up to Rs 7.27 lakh will not be required to pay income tax. This move comes as a relief to the middle class and is part of the new income tax regime introduced in the Union Budget for 2023-24.
Addressing concerns raised about the income just above Rs 7 lakh, Sitharaman clarified that the decision to exempt income up to Rs 7 lakh was made after careful consideration of various factors. In order to mitigate any tax burden on those earning slightly more than 7 lakh, the government has expanded the scope of tax exemptions under the new tax regime.
Under this new system, individuals with an income of up to Rs 7.27 lakh will receive an exemption from income tax. Only incomes exceeding Rs 7 lakh will incur a tax liability, with a break-even point set at Rs 27,000. To further assist taxpayers, the new tax system also includes a standard deduction of Rs 50,000.
The government’s decision to exempt individuals with an income of up to Rs 7.27 lakh from income tax reflects its commitment to provide relief to the middle class and simplify the tax structure. This move aims to make taxation more equitable and ensure that individuals with lower incomes do not bear unnecessary tax burdens.
It is important to note that this announcement comes ahead of the July 31 deadline for filing Income Tax Return (ITR). This allows individuals to plan their tax payments and submit their returns accordingly.
Overall, the introduction of the new income tax regime, with its expanded exemptions and standard deductions, demonstrates the government’s efforts to address the concerns of the middle class and create a more taxpayer-friendly system. By providing relief to individuals with lower incomes, the government aims to make taxation fairer and more accessible for all.