Finance Minister Nirmala Sitharaman recently made an important announcement regarding income tax regulations in India. According to her statement individuals earning up to Rs 7.27 lakh annually will now be exempt from paying income tax. This measure was introduced to address concerns raised during the implementation of the New Income Tax Regime. The clarification comes just before the approaching deadline of July 31 for filing Income Tax Returns (ITR). Sitharaman emphasized that the government has taken steps to provide relief to the middle-class segment of society through the new tax regime. Read More Business News on our website.

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Major Relief For Indian Taxpayers Before ITR Deadline July 31!

The Union Budget for the fiscal year 2023-24 has granted income tax exemption to individuals earning up to Rs 7 lakh per year. However questions have arisen regarding the tax treatment of those earning slightly above Rs 7 lakh. To address these concerns, the government has expanded the scope of tax exemptions under the new tax regime. Sitharaman clarified that taking into account these concerns, individuals with an income of up to Rs 7.27 lakh will now be exempt from income tax.

The Finance Minister further explained that the decision to exempt income up to Rs 7 lakh in the Union Budget was based on a thorough analysis of various factors. Through careful calculations and assessment, it was determined that individuals with an income of Rs 7.27 lakh would be eligible for income tax exemption. Therefore, no tax will be imposed on this income. Only incomes exceeding Rs 7 lakh will be subject to tax liability with a break-even point set at Rs 27,000.

Responding to concerns raised about incomes just above Rs 7 lakh, Sitharaman assured taxpayers that the new tax system includes a standard deduction of Rs 50k for their convenience. The Finance Minister emphasized that the new tax regime aims to address complaints regarding the absence of standard deductions in the previous system.

The decision to grant income tax exemption to individuals earning up to Rs 7.27 lakh reflects the government’s commitment to easing the tax burden on the middle class and streamlining the tax system. The objective is to promote fairness in taxation and ensure that individuals with lower incomes are not burdened with unnecessary taxes.

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