Finance Minister Nirmala Sitharaman has unveiled significant tax reforms and benefits aimed at providing relief and simplifying the income tax structure for Indian taxpayers. These measures, introduced under the new income tax regime, aim to enhance the ease of compliance and improve the financial well-being of individuals.
Increased Income Tax Exemption and Standard Deduction:
One of the key highlights of the new regime is the elimination of income tax for individuals earning up to Rs 7 lakh annually. With the inclusion of marginal relief provisions, this exemption effectively increases to Rs 7.27 lakh. Additionally, a standard deduction of Rs 50,000 has been introduced, offering further relief to taxpayers.
Streamlined Processing and Faster ITRs:
The Finance Minister emphasized the government’s commitment to streamlining the income tax filing process. She highlighted a remarkable 100% increase in the total percentage of Income Tax Returns (ITRs) processed within one day of their filing, compared to the previous year. This improvement signifies the government’s efforts to expedite the processing of ITRs and provide a more efficient tax filing experience.
Enhanced Exemptions and Benefits:
To support the healthcare needs of senior citizens, the exemption on medical expenditure has been raised from Rs 30,000 to Rs 50,000. This revision aims to alleviate the financial burden on senior citizens and facilitate access to necessary medical treatments.
Furthermore, in a significant move towards ensuring affordable healthcare, life-saving drugs and cancer medicines have been exempted from the Goods and Services Tax (GST). This exemption aims to make critical medicines more accessible and affordable for patients in need.
