A Rewarding Boost: Additional Tax Relief for Annual Incomes over Rs 7 Lakhs
Tax News: In a bid to incentivize more taxpayers to switch to the new income tax regime, the Indian government has announced additional relief measures. Under the new regime, taxpayers with an annual taxable income of over Rs 7 lakh will now receive relief on their incremental income above the threshold.Expansion of Tax Rebate LimitIn the Union Budget for 2023-24, the government had already expanded the rebate on income tax under the new tax regime to an annual taxable income of Rs 7 lakh from the earlier
limit of Rs 5 lakh. This move was aimed at providing tax relief to a larger section of taxpayers.New Relief MeasuresThe latest announcement by the government provides further relief to those earning over Rs 7 lakh per annum. Earlier, such taxpayers were required to pay tax on sub-Rs 7 lakh slabs as well, even if their income was just marginally higher than the threshold. This will provide additional relief to small taxpayers who would otherwise have to bear a higher tax burden.Encouraging Taxpayers to Migrate to New
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government is making a concerted effort to encourage taxpayers to shift to the new income tax regime. In addition to the above measures, the government has also overhauled the tax slabs and offered additional incentives to both the lowest and highest earners.Impact on TaxpayersThe latest relief measures are expected to have a positive impact on taxpayers with an income above Rs 7 lakh per annum. They will now be able to save on taxes on their incremental income above the threshold, thereby reducing their overall tax liability.
move is expected to be particularly beneficial for small taxpayers who are struggling to make ends meet in the wake of the COVID-19 pandemic.The Indian government's latest announcement of additional relief measures under the new income tax regime is a welcome move for taxpayers. The move is expected to provide further relief to small taxpayers and encourage more people to shift to the new regime. The government's efforts to overhaul the tax slabs and incentivize taxpayers are expected to have a positive impact on the economy as well.