Fortunately, this new year brings along with it, a really good news which is relating to the income tax rate required to be paid. The good news is introduced by our Finance Minister Nirmala Sitharaman. Continue reading to know what good news is introduced.
1. Good News for All Income Tax Payers
On the first day of the new year, Finance Minister Nirmala Sitharaman gifted all the taxpayers with big news. So, if you pay income tax, then as per the income tax good news, you will be required to pay only 5% tax. It concludes that, whether an income taxpayer falls under the new or old tax regime, he or she shall be liable to pay only 5% tax amount.
To whom the income tax good news is applicable?
Where the taxpayer is having an income which is between Rs. 2.5 Lakh to Rs. 5 Lakhs then you will be required to pay tax at the rate of 5 percent. However, where a taxpayer is earning an income that is lower than Rs. 2.5 Lakh then, no tax shall be paid.
Moreover, the government can increase the scope of tax-free income. Many of them who have income limited to Rs. 2.5 Lakhs are presently enjoying the benefits. However, these income tax benefits may be further increased from 3 to 5 Lakhs. So, this can be a great benefit to many of the taxpayers in India.
If we talk about when was the last income tax benefit introduced? Then let me inform you, in the year 2014 there was an increment in the income tax limit. In the year 2014, the previously limit which was Rs. 2 Lakhs was further increased to Rs. 2.5 Lakhs.
2. GST Rate Change 2023
As announced by our Finance Minister in Budget 2022, the GST rate increase will be staggered over two steps, namely:-
- From 7% to 8% with effect from 1st Jan 2023; and
- From 8% to 9% with effect from 1st Jan 2024.
So, as we have entered in 2023, the rate change from 7% to 8% shall be applicable. It is applicable when you sell the old equipment via a trade-in on/after 1st Jan 2023, your supplier would have to charge 8% GST on the full price of the new equipment.
Conclusion
So, with this good news introduced by our Finance Minister Nirmala Sitharaman, no heavy amount will be required to be paid. As of now, this short update has appeared and is not mentioned in any government document. Stay tuned with us to know more of the latest updates from the Income Tax and GST department.
