The Ministry of Finance announced a major development in personal income tax benefits through a post on X, indicating the fulfilment of promises made in the Finance Act, 2023. As per the latest amendment to Section 87A of the Income-tax Act, 1961, individuals with income up to Rs. 7 lakh now enjoy a tax rebate, ensuring they face no tax liability.
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) #Promises Delivered”
The Central Board of Direct Taxes (CBDT) has actively fulfilled the budget promises for the fiscal year 2023-24, with a particular focus on providing relief in personal income tax. The Finance Act of 2023 introduced crucial changes, including the amendment to Section 87A, directly impacting the tax liability of individuals.
The announcement highlighted that the previous provision exempted 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.
(Inputs from ANI)
