More Than 7 Lakh Rupees income become tax free with small margin: Making a big announcement on Friday, the Finance Ministry has said that in the new tax regime some people with income above Rs 7 lakh will also be able to take advantage of zero tax. This benefit will be given to those people whose income will be a little more than Rs 7 lakh. This means that people whose income is slightly more than Rs 7 lakh i.e. up to Rs 100, 1000, 2500, will not have to pay any tax. In this regard, the Finance Bill has been passed in the Lok Sabha on Friday with necessary amendments.
Calculation will be like this
Explaining the provision, the Finance Ministry has said that under the new tax regime, if a taxpayer has an annual income of Rs 7 lakh, he will not have to pay any income tax. But if the income of a person becomes Rs 7,00,100, then the tax liability on him becomes Rs 25,010. That is, due to additional income of only Rs 100, taxpayers have to pay tax of Rs 25,010.
But now minor relief has been given through amendment. So that those taxpayers who will not get the benefit of zero tax by a small margin, can also get its benefit.
According to the news agency language, with this initiative of the Ministry of Finance, tax experts believe that individual taxpayers whose income is up to Rs 7,27,777 can get the benefit of its provision.
In this way, the small taxpayer was being harmed by a small margin.
| Gross Salary Income (Rs.) | 7,00,000 | 7,02,000 |
| standard deduction | , | , |
| 80C, home loan and other exemptions | will not get benefit | will not get benefit |
| net income | 7,00,000 | 7,02,000 |
| Taxes (after rebate) | 0 | 25,200 |
Income up to 7 lakhs was tax free in the budget
Earlier, Finance Minister Nirmala Sitharaman had announced in the budget presented on February 1 that now those earning up to Rs 7 lakh will not have to pay any tax. According to the Finance Minister, according to the new tax slab, people will not have to pay any income tax up to Rs 7 lakh with rebate for the financial year 2023-24. Earlier, after adopting the tax exemption options, no tax had to be paid up to 5 lakhs. But the new tax regime will give an additional benefit of Rs 2 lakh. However, those adopting the old tax regime will not get the benefit of this exemption.
This is the new tax slab
| new tax slab | new tax rate |
| up to 3 lakh | 0% |
| 3-6 lakhs | 5% |
| 6-9 lakhs | 10 % |
| 9-12 lakhs | 15% |
| 12-15 lakhs | 20% |
| more than 15 lakh | 30% |
