Income Tax New Update 2023: As soon as the budget season comes, once again the discussion of Income Tax Return has started! If media reports are to be believed then Tax Payers can get to hear good news after nine years! That is, Finance Minister Nirmala Sitharaman can increase the income tax (ITR) exemption limit on February 1! At present no tax is to be paid on annual income up to Rs.2.5 lakhs! Whether the Finance Minister will give relief to taxpayers or not, it will be known on February 1, but even in the current system, you can save 100% tax on annual income up to Rs 10.5 lakh! That means you will not have to pay any tax! Let’s know!
Income Tax New Update 2023
If your annual income is between Rs 10 lakh to Rs 20 lakh, then you come in the 30 percent tax (Income Tax Return) slab! If your annual income is Rs 10 lakh 50 thousand, then you get a standard deduction of Rs 50,000! In such a situation, your taxable income (Tax Slab Income) remains only 10 lakh rupees! Standard deduction is the amount that is directly deducted from your income. Income tax is calculated on the rest of the income according to the tax slab. This reduces your total tax payable! If media reports are to be believed then it can be increased up to 70 thousand rupees.
advantage of 80c
Under Section 80C of the Income Tax Return Act 1961, the taxpayer can avail tax exemption on investment up to Rs 1.5 lakh in a financial year! In this you can claim PPF (PPF), LIC (LIC), children’s tuition fees, EPF (EPF) and mutual funds (ELSS)! Also, if there is a home loan running, you can claim it on the interest paid on the principal as well! In this way, now you will have to pay tax on an income of 8 lakh 50 thousand rupees.
Benefit from NPS: Income Tax New Update 2023
Under Section 80CCD of the Income Tax Return Act 1961, provision for tax deduction has been made on NPS. If you want that there is no income tax on the income of 8 lakh 50 thousand rupees, then for this you have to invest in NPS under this section! In this you will have to invest 50 thousand rupees. Means now your taxable income (Income Tax Slab) has reduced to Rs.8 lakhs! You can even reduce it!
home loan interest
Income tax exemption is available on both the interest and principal amount paid on the home loan to buy a house! You can avail interest deduction of up to Rs 2 lakh under Section 24B of the Income Tax Return Act! However, you will get this exemption only if you have spent this much amount on home loan interest payment! Now your taxable income (Income Tax Slab) is only 6 lakh rupees left! There is a way to reduce it too!
medical health insurance
You can claim 75 thousand rupees by using section 80D of Income Tax Return! Under this, you can buy medical health insurance for your family for Rs 25,000! Its premium can be claimed! Not only this, you can claim health insurance premium of Rs 50,000 separately for your parents! In this way, you can claim a total of 75 thousand rupees in the name of health insurance premium! Now your taxable income (Income Tax Slab) is only 5 lakh 25 thousand rupees left!
Donation will save tax
If you do not want to pay Income Tax Return, then you will have to donate Rs 25,000 to any institution or trust! You can claim it under section 80G of Income Tax! In this way your taxable income (Income Tax Slab) will be 5 lakh rupees! You will not have to pay any tax on this! 2!100% tax is levied on income from Rs.5 lakh to Rs.5 lakh! But the government has given exemption to deposit this amount.
Elections will be held after 13 months
The Modi government will present the full budget of its second term in 2023 (Budget 2023)! Next year general elections will be held about 13 months after the budget. It is believed in this way! That this time the government is preparing to give big relief to the ITR (Income Tax Return) payer! General public !
Finance Minister Sitharaman asked for suggestions: Income Tax New Update 2023
According to information received from sources, Finance Minister Nirmala Sitharaman had asked for suggestions regarding tax (ITR)! How much scope is there for improvement in the new tax system. Discussion is going on about this too! In such a situation, it is believed that the government can make changes in both the new and old tax systems. Right now there is no benefit of any kind in the new Income Tax Return system!