Download Income Tax Preparation Software in Excel All in One for the Government & Non-
Government Employees for the Assessment Year 2024-25 | To appeal to the country's growing middle
class, the Finance Minister announced changes to the deduction, the current tax structure and the
extension of standard deduction benefits, among other things.
Union Finance and Corporate Affairs Minister Nirmala Sitharaman in her Union Budget speech shared a number of key announcements that will bring huge benefits to the country's salaried taxpayers. To appeal to the growing segment of the middle class, the Finance Minister announced changes to refunds, the existing tax structure, and an extension of standard deduction benefits, among other things. The recent Union budget also announced many technological measures to facilitate the process of paying taxes for the salary category. Let's take a look at the top seven 2023 budget updates that salaried taxpayers need to know about:
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A) The Finance Minister has proposed to increase the deduction limit to Rs 7 lakh in the new tax system which was previously Rs 5 lakh. This means that with the new tax system in place, people with an income of Rs 7 lakh will not have to pay any tax. At present, people with incomes up to Rs 5,000 do not pay income tax under either the old or the new tax regime.
B) The Minister of Finance announced more tax measures for middle-class people and proposed to change the tax structure in the new personal income tax system by reducing the number of panels to five and increasing the tax exemption limit to 3,000 rupees. This means that a person with an annual income of Rs 9,000 will now have to pay only Rs 45,000, which is only 5% of her income.
This represents a 25% reduction from the amount now required to be paid, which is Rs 60,000. Similarly, a person with an income of Rs 15,000 will need to pay only Rs 1.5,000 or 10% of their income, compared to the previous payment of Rs 1, 87,500.” This is a 20% reduction of the current liability.
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Form 16 Part A&B]
C) Another important exemption intended both for the salary category and for pensioners including family retirees, is the proposal to extend the scope of application of the standard deduction to the new tax regime. "Every salaried person with an income of Rs 15.5 lakhs or more will benefit from Rs 52,500/-. Currently, a standard deduction of Rs 50,000/- for salaried persons and a family pension deduction up to Rs 15,000/ - is currently not allowed. Except under the old regime."
D) The personal income tax space will see another major development with the proposal to reduce the top surcharge rate from 37% to 25% in the new tax regime for those earning more than Rs 2 crore. It is important to note that this would result in a reduction of the top tax rate to 39% from the current 42.74%, which by the way, is among the highest in the world.
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E) The budget has also proposed to extend the tax exemption limit on leave disbursement to Rs 25,000 on the retirement of salaried non-government employees, which is in line with the government salary grade. Currently, the maximum amount that can be exempted is Rs 3 lakh. While the budget proposed making the new income tax system the default tax system, according to the announcement, taxpayers were allowed to continue "enjoying the option to benefit from the old tax system."
F) To further improve services for taxpayers, the Minister of Finance announced the introduction of the next generation of the Common Income Tax Return form. “We introduced the next generation of the IT common filing model and improved the mechanism of complaint remediation to further improve taxpayer services.
G) The Finance Minister announced the simplification of the Know Your Customer (KYC) process, suggesting that the KYC process would be streamlined by taking a "risk-based" approach rather than a "one size fits all" approach while noting an extension of the “range of documents available DigiLocker for Individuals.
Feature of this Excel Utility:-
1) This
Excel utility prepares and calculates your income tax as per the New Section
115 BAC (New and Old Tax Regime as per Budget 2023)
2) This
Excel Utility has an option where you can choose your option as a New or Old Tax
Regime
3) This
Excel Utility has a unique Salary Structure for Government and Non-Government
Employees Salary Structure.
4) Automated
Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01
to F.Y.2023-24 (Update Version)
5) Automated
Income Tax Revised Form 16 Part A&B for the F.Y.2023-24
6) Automated
Income Tax Revised Form 16 Part B for the F.Y.2023-24
