There will be no tax on annual income up to Rs 7 lakh for individual taxpayers filing their returns under the New Tax Regime from Assessment Year 2024-25. In Budget 2023, Finance Minister Nirmala Sitharaman increased the basic exemption limit under New Regime to Rs 3 lakh and the tax rebate from Rs 5 lakh to Rs 7 lakh.
Along with the introduction of a standard deduction of Rs 50,000 in the New Regime for individuals in the salaried and pensioner categories, the tax liability of such individuals earning up to Rs 7.5 lakh in FY 2023-24 will become zero from AY 2024-25. But how many individuals will benefit from the tax relief measures announced by the Narendra Modi Government in Budget 2023? Let’s have a look at what the official data shows.
As per the data shared by the Government in Lok Sabha on February 13, there were over 4.1 crore individual taxpayers who reported an income of up to Rs 5 lakh in AY 2021-22. There were also 1.4 crore taxpayers who reported incomes between Rs 5 to Rs 10 lakh while the total returns filed in AY 2021-22 was over 6.3 crore.
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While the Government has not shared the exact number of individuals with income up to 0 to Rs 7 lakh, it can be assumed that more than 4 crore taxpayers will clearly benefit from the policy of charging no tax on income up to Rs 7 lakh from AY 2024-25. These taxpayers will have to pay no tax in AY 2024-25, provided their annual incomes are not above the Rs 7 lakh limit. (Check: New tax slabs)
Total number of Individual Taxpayers in AY 2020-21 and AY 2021-22
|Personal Income Tax (Rs)||AY 2020-21||AY 2021-22|
|5 to 10 lakh||11228574||14074602|
|above 10 lakh||5411934||8103067|
The income-wise taxpayers’ data for AY 2022-23 (FY 2021-22) is yet to be compiled as the last date for filing revised returns was December 31, 2022.
Also Read: What will be the tax on Rs 9, 10, 12, 15 lakh income?
As per the latest data on the Income Tax Return filing website, as many as 7,54,79,837 tax returns have been filed in AY 2022-23, of which more than 7.19 crore ITRs have been verified and over 6.96 returns processed till February 12, 2023.