After all, we are all taxpayers. Doctors, engineers, businessmen all pay tax. But there was something different in the Finance Minister’s announcement of tax free up to 7 lakhs. Which is probably still nagging in some people’s mind. Today we are going to clear this confusion of yours as well.
It would be around 12 noon on 1st February, Wednesday. The budget session was going on in the Parliament. Finance Minister Nirmala Sitharaman announced that up to 7 lakh income tax tax free Has been done. Amazing enthusiasm was seen among the people across the country. From Parliament to offices, people expressed their happiness by clapping their hands on the desk. But no one’s attention went towards whether this exemption is for everyone or only for some people.
After all, we are all taxpayers. Doctors, engineers, businessmen all pay tax. But there was something different in the Finance Minister’s announcement of tax free up to 7 lakhs. Which is probably still nagging in some people’s mind. Today we are going to clear this confusion of yours as well. Read the full news to know who all are included in the Finance Minister’s tax-free announcement.
These people will not get benefit
Finance Minister Nirmala Sitharaman gave relief to the taxpayers, but to those who will choose the new income tax system in the financial year 2023-24. Tax payers taking the old tax system will continue to pay tax as before. Only the salaried class will get the provision of tax exemption in the budget. Suppose, if you are a doctor, lawyer, business man or different from non-salaried class, then you will not get this exemption. Standard deduction of Rs 50,000 has also been included in the tax system. That is, there will be no tax on salary up to Rs 7.5 lakh.
Think of it this way… on a salary of Rs 7.5 lakh, first deduct the standard deduction of Rs 50,000. The remaining 7 lakh rupees, as soon as 7 lakh rupees, you will come under the ambit of rebate and will get full tax exemption.
But if your income is not from salary then you will not get the benefit of standard deduction. That is, if your income exceeds Rs 7 lakh by even one rupee, you will have to pay tax.
Will have to pay zero tax
Let us tell you that the benefit of this standard deduction is not available for non-salaried individuals, that is, according to this, you can save tax on the entire income up to Rs 7,50,000 lakh, that is, you will have to pay zero tax.
This way you will get a discount of Rs 25,000
Apart from this Rs 7,50,000 lakh, the tax rebate limit has also been increased by the government. This limit has been increased under section 87A of Income Tax. Let us tell you that earlier in this, the benefit of tax exemption was available on taxable income of up to Rs 5 lakh. In this way you will get a discount of Rs 25,000.
: Language Inputs