While passing the Finance Bill on Friday, Finance Minister Nirmala Sitharaman talked about imposing tax on debt funds as well as giving some relief to the general public in the announcements made in the budget. In fact, it was said in the budget that no tax will be levied on the income of 7 lakhs. The announcements made in the budget will come into effect from April 1 i.e. the new financial year.
While passing the Finance Bill on Friday, the government has increased the relief to the common people a little more on this front. While revising the Finance Bill, the Ministry of Finance has slightly increased the announcement of 7 lakhs made in the budget. Now no tax will have to be paid even on earning a little above 7 lakhs.
How much will not be taxed
Now you must be thinking that the amount up to 7 lakhs has already been made tax free. So now no tax will have to be paid up to what amount in the revision. Let’s clear you up. According to the announcement of the budget, no tax will have to be paid on income up to 7 lakhs. But above 7 lakhs i.e. 7.10 lakhs or 7.20 lakhs no tax will have to be paid. According to the Finance Ministry, tax will have to be paid only on additional income above 7 lakhs. Meaning if your income is Rs 7.10 lakh, then you will have to pay tax only on Rs 10,000. However, the government has not yet clarified how much this amount will be. The government will disclose this amount only after issuing the notification.
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game of marginal benefit
In the new tax regime, the benefit of this margin benefit will be available to all those people whose income is slightly above 7 lakhs. Now you must be wondering what is this marginal benefit. Actually margin benefit is such a benefit that is available on the additional amount after a fixed amount. For example, in this case, the tax free amount has been fixed at 7 lakhs by the government. Now, if someone’s income is a little more than this, then you will be able to get that margin profit.
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be a little more clear
Now understand the case of 7 lakhs with an example.. If your income is 7 lakh 100 rupees, then if your tax is being made at 25,010 rupees, then it is not right that you have to pay tax of 25000 rupees just because your income is more than 100 rupees. That’s why the government has given this special exemption to such people under the new regime.