NEW DELHI: The Ministry of Finance announced a significant development in personal income tax benefits through a post on X, indicating the fulfilment of promises made in the Finance Act, 2023.
The Ministry of Finance posted on X, “Benefits in Personal Income Tax! Vide Finance Act, 2023, Section 87A of the Income-tax Act, 1961 has been amended to allow rebate to tax resulting in no tax liability to persons having income up to Rs. 7 lakh. (1/5) #PromisesDelivered”
https://twitter.com/FinMinIndia/status/1746736491257376966?s=20
The amendment to Section 87A of the Income-tax Act, 1961, has been implemented to offer a rebate, ensuring no tax liability for individuals with income up to Rs. 7 lakh. This update aligns with the government’s commitment to easing the tax burden on the middle-income segment.
The Central Board of Direct Taxes (CBDT) has actively delivered on the budget promises for the fiscal year 2023-24, with a particular focus on personal income tax relief. The Finance Act of 2023 outlined key changes, including the amendment to Section 87A, which directly impacts the tax liability of individuals.
In the announcement, it was highlighted that the current provision exempts those with income up to Rs 5 lakh from paying income tax in both the old and new tax regimes. However, as part of the Finance Act 2023, the rebate limit has been increased to Rs 7 lakh for individuals in the new tax regime.
This implies that individuals falling within this income bracket under the new tax regime will now be exempt from paying any income tax. The move aims to provide relief to a broader segment of taxpayers and stimulate economic growth by increasing disposable income.
The announcement also emphasized the government’s commitment to delivering on promises and ensuring that citizens receive tangible benefits from the proposed changes. (ANI)