The Central Government has amended the Finance Bill-2023 passed by the Lok Sabha on Friday, giving relief to those earning a little more than seven lakh rupees annually.
After this amendment, now even those earning a little more than Rs 7 lakh per annum will be able to get tax exemption. In the new tax system, those earning up to seven lakh rupees annually will not have to pay any tax.
Instead of paying tax on the entire income, those earning more than Rs 7 lakh will now have to pay tax only on the amount that exceeds Rs 7 lakh.
Explaining the latest relief, the Finance Ministry said that suppose someone’s income during the financial year 2023-24 is seven lakh rupees, then no tax has to be paid. But if someone’s income is Rs 7,00,100, then according to the earlier proposal, the taxpayer would have to pay tax of Rs 25,010.
This means that for earning Rs 100 more, the taxpayer would have to pay tax of Rs 25,100. In such a situation, the ministry has announced that those earning more than seven lakhs will not have to pay tax in excess of their income.
Before this announcement, the Finance Bill, 2023 was passed in the Lok Sabha without any debate.
The finance bill was passed amid sloganeering by opposition members demanding a Joint Parliamentary Committee probe into the allegations against the Adani Group. With this, the way has been cleared for the implementation of new tax proposals for the next financial year.
This Finance Bill has been passed with some amendment proposals placed by the ruling party. More than 20 sections have been added to the Finance Bill. With this, the proceedings of the Lok Sabha have been adjourned till Monday.