Business News Desk,The country’s general budget – 2023 has been presented on 1 February 2023, where Finance Minister Nirmala Sitharaman presented it in the Parliament. At the same time, in the new tax system in the General Budget-2023, the tax limit has been increased, where now those with an annual income of 7 lakhs will not have to pay any kind of tax. At the same time, a lot of changes have been made in the basic tax exemption and tax system in this general budget.
Who can avail the benefits of section 87A
According to the income tax rules, the exemption under Section 87A is available only to Indians, that is, the original residents here, while NRIs, Hindu Undivided Families and other firms do not get the benefit. Explain that the benefit of exemption under section 87A is available in both the new and old tax regime, where it is going to remain the same in the financial year 2022-23.
This much is available under section 87A
Explain that if the annual income of those choosing the new tax option in the financial year 2022-23 does not exceed Rs 5 lakh, then they will get the benefit of tax exemption of Rs 12,500 through section 87A. Similarly, it is going to remain the same as in the old tax regime, while the eligible income is calculated only after claiming all the deductions and exemptions in the old tax regime, also the new tax does not allow common deductions and exemptions. In the General Budget- 2022, the basic exemption limit in the tax slab has been increased from Rs 2.5 lakh to Rs 3 lakh annually. Where if someone’s annual income is more than Rs 3 lakh, then he will come under the tax net, but he will not have to pay any kind of tax on annual income up to Rs 7 lakh.