The Ministry of Finance recently fulfilled promises outlined in the Finance Act, 2023, announcing significant developments in personal income tax benefits via a post on X.
Benefits in Personal Income Tax!
— Ministry of Finance (@FinMinIndia) January 15, 2024
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 pic.twitter.com/RvoKHnYynh
According to the announcement, Section 87A of the Income-tax Act, 1961, has been amended to provide a rebate, resulting in no tax liability for individuals with income up to Rs. 7 lakh. This amendment 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 implemented budget promises for the fiscal year 2023-24, focusing on personal income tax relief. The Finance Act of 2023 introduced key changes, particularly the amendment to Section 87A, directly impacting the tax liability of individuals.
The update highlighted that the previous provision exempted those with income up to Rs. 5 lakh from paying income tax in both old and new tax regimes. However, under 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 within this income bracket under the new tax regime will now be exempt from paying any income tax.
The objective of this move is to provide relief to a broader segment of taxpayers, stimulating economic growth by increasing disposable income. The announcement underscores the government’s commitment to delivering on promises and ensuring citizens receive tangible benefits from the proposed changes.
