The Finance Minister Nirmala Sitahraman in the 2023 Budget has proposed huge changes in the Direct Tax. The tax benefit is mostly beneficial to the common people of the country. She introduced a common Income tax return form for easy and smooth income tax return filing. “
Further tax reduction at source Reduced from 30% to 20% and also provide relief to presumptive tax payers
The new tax rates are 0 to Rs 3 lakhs – nil, Rs 3 to 6 lakhs – 5%, Rs 6 to 9 Lakhs – 10%, Rs 9 to 12 Lakhs – 15%, Rs 12 to 15 Lakhs – 20% and above 15 Lakhs – 30%, ” says Union Finance Minister Nirmala Sitharaman and also says that Income up to 7 Lakhs will not attract Income Tax and the income tax rebate increased to 7 Lakhs from 5 lakh.
The new budget reduced the TDS rate from 30% to 20% and also provides relief to presumptive tax payers.
Extending benefits of standard deductions to new tax regime for salaried class and pensioners the new budget allowed standard deduction of 52,500 for Taxpayers having Income of Rs. 15.5 Lakhs.
Further section 271(1)(a) of Income Tax Act decriminalized another important benefit go taxpayers
To reduce the highest surcharge rate from 37% to 25% in the new tax regime.
Under the case of cooperatives a higher limit of 3 crore for TDS on Cash withdrawal for cooperative societies is allowed.
New start-ups also covered under the 2023 budget and moreover the budget proposed to admit commissioners for reducing small appeals under tax related cases.
The finance minister extended the 15% corporate tax benefit to new cooperatives commencing manufacturing till 31st march 2024.
When the budget is presented finance minister Nirmala sitharaman says that” New Regime to be the Default regime. Citizens will be able to continue in the old regime also.”
The budget 2023 increased the tax exemptions limit to 25 lakh on leave encashment on retirement for nongovernmental salaried employees.
Income of board authorities set up by statute of the union or state to be exempted from income tax in certain sectors.
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