Finance Minister Nirmala Sitharaman recently discussed the measures taken by the Central Government over the past nine years to benefit middle-class taxpayers. One of the key announcements made in Budget 2023 was the increase in the tax-free income limit under the New Tax Scheme to Rs 7.27 lakh. Initially, there were concerns about what would happen to individuals earning slightly above Rs 7 lakh. Addressing these concerns, FM Sitharaman stated that the government had taken them into consideration and introduced marginal relief provisions. As a result, income up to Rs 7.27 lakh now falls within the tax free bracket under the New Tax Regime. Read More Business News on our website.
To make the new regime more appealing, the Budget 2023 also introduced a standard deduction of Rs 50,000. This deduction is applicable to salaried employees and helps to offset the absence of various deductions allowed under the old scheme.
FM Sitharaman emphasized that no section of society had been neglected by the government during the past nine years. Additionally, she highlighted the tax-filing reforms that have significantly improved the speed of processing income tax returns. Notably, there has been a 100% increase in the percentage of ITRs processed within one day of filing compared to the previous year.
Furthermore, the Budget 2023 raised the exemption limit on medical expenditure for senior citizens from Rs 30,000 to Rs 50,000. Additionally, life-saving drugs and cancer medicines are now exempted from the Goods and Services Tax (GST). These measures aim to provide relief and support to middle-class taxpayers and address their healthcare needs.