Finance Minister Nirmala Sitharaman on made a number of announcements while presenting the Budget statement for fiscal 2023-24. Some of the top announcement being the new tax regime is now the default tax regime, income tax rebate for individuals.
Here are six money-related changes proposed by FM Sitharaman that may impact your finances.
New Tax Regime, Now the Default Tax Regime
Finance Minister Nirmala Sitharaman on Wednesday said that the new tax regime is now the default tax regime. While presenting the Budget statement for fiscal 2023-24, Sitharaman told Parliament that the government will be adopting a number of measures to make the voluntary tax regime more attractive and will forego revenue in the process.
Income Tax Rebate
Nirmala Sitharaman has announced a big change in the existing income tax structure for salaried employees. She has proposed to increase the income tax rebate to income tax Rs 7 lakh from Rs 5 lakh for those opting for the new tax regime.
?The new tax rates are Rs 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
Standard Deduction Limit Increased
A standard deduction of Rs 45,000 has now been extended to the new tax regime for the salaried class and pensioners. An individual with Rs 9 lakh annual income will now pay Rs 45,000 tax which is 5 per cent of the salary ? a reduction of Rs 15,000 from the present Rs 60,000.
Senior Citizens Saving Scheme (SCSS)
Finance Minister Nirmala today extended the maximum deposit for the senior citizens saving scheme. “The senior citizens saving scheme will be extended for a deposit account of Rs 30 lakh from Rs 15 lakh, announces Finance Minister Nirmala Sitharaman,? she announced.
Govt increases limit for Post Office Monthly Income Scheme
Finance Minister Nirmala today increased the limit on the small savings scheme Post Office Monthly Income Scheme(POMIS). The new limit will be Rs 9 lakh from Rs 4.5 lakh for asingle accounts and Rs 15 lakh from Rs 9 lakh for joint account holders.
MSMEs and Professionals
FM said, MSMEs are growth engines of our economy. Micro enterprises with turnover up to Rs 2 crore and certain professionals with a turnover of up to Rs 50 lakh can avail the benefit of presumptive taxation. I propose to provide enhanced limits of Rs 3 crore and Rs 75 lakh respectively, to the tax payers whose cash receipts are no more than 5 per cent.?
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