New Tax Regime: There is no provision for exemption on investment in the new tax regime like in the old tax regime. Regarding which the government is constantly being criticized that in the new tax regime, the government is not motivating people to invest and save for the future. When this question was asked to Finance Minister Nirmala Sitharaman, she said that the government should not underestimate the saving and consumption capacity of taxpayers. Taxpayers have been given more rights in the new tax regime and they will be able to decide what they want to do with the remaining money.
During a joint press conference with the RBI Governor after attending the meeting of the Central Board of Directors of RBI, the Finance Minister defended the new tax regime, saying that the new tax regime left more money in the hands of common people, taxpayers and households. Are. Therefore, the money that will be left in his hands after paying taxes, he has to decide what to do with the remaining money.
Nirmala Sitharaman said why should I affect the decision-making ability of a householder who is taking care of his family, taking care of their future interests. The Finance Minister said that the person who is earning money is intelligent and knows where to keep his money. He wants to save and wants to take insurance for himself and his family, so I have not stopped him from doing so.
Presenting the budget on February 1, 2023, the Finance Minister did not give any relief to the taxpayers in the old tax regime. But the tax exemption limit of the new tax regime has been increased to Rs 3 lakh annually. 5% tax slab on annual income of 3 to 6 lakhs, 10% on 6 to 9 lakhs, 15% on income of 9 to 12 lakhs, 20% on income of 12 to 15 lakhs and 30% on income above 15 lakhs. Also, while making changes in the new tax slab, those earning up to Rs 7 lakh annually were given the gift of tax exemption. The government has given a rebate of Rs 25,000 on tax.
