The Ministry of Finance has announced a significant development in personal income tax benefits, fulfilling promises made in the Finance Act, 2023. According to a tweet from the official Ministry of Finance account, Section 87A of the Income-tax Act, 1961, has been amended, allowing a rebate that eliminates tax liability for individuals with income up to Rs. 7 lakh.
This amendment aligns with the government’s commitment to reducing the tax burden on the middle-income segment. The Central Board of Direct Taxes (CBDT) has actively delivered on budget promises for the fiscal year 2023-24, focusing on personal income tax relief. The Finance Act, 2023, outlined key changes, including the amendment to Section 87A, directly impacting the tax liability of individuals.
Under the new tax regime, the rebate limit has been increased to Rs. 7 lakh, providing income tax exemption for individuals falling within this bracket. This move aims to offer relief to a broader segment of taxpayers and stimulate economic growth by increasing disposable income. The announcement underscores the government’s commitment to delivering on promises and ensuring tangible benefits for citizens from proposed changes in the tax structure.
