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Budget 2023: No tax on income up to Rs 7 lakh, revised tax slabs for new regime

The highest surcharge rate has also been reduced from 37 percent to 25 percent in the new tax regime.

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Budget 2023

In a major announcement, Finance Minister Nirmala Sitharaman has proposed to increase the tax rebate from Rs 5 lakh per annum to Rs 7 lakh per annum under the new tax regime. This means that individuals earning up to Rs 7 lakh are exempt from paying tax.

Standard Deduction under New Tax Regime for individuals with income up to Rs 15 lakh will be Rs 52,400, says FM Sitharaman. The highest surcharge rate has also been reduced from 37 percent to 25 percent in the new tax regime.

Sitharaman, who presented the last full budget of the BJP-led government before the next parliamentary elections in 2024, said the new tax regime will be a default tax regime and citizens will continue to reap the benefits of the old regime.

Read Also: Budget 2023: Defence budget hiked by 12.95 percent to Rs 5.94 lakh crore

Revised tax slabs under the new tax regime:

  • Income up to Rs 3 lakh: Nil
  • Income above Rs 3 lakh and up to Rs 6 lakh will be taxed at 5 percent.
  • Income above Rs 6 lakh and up to Rs 9 lakh will be taxed at 10 percent.
  • Income more than Rs 12 lakh and up to Rs 15 lakh will be taxed at 20 percent.
  • Income over Rs 15 lakh will be taxed at 30 percent.

The finance minister also proposed to hike tax exemption on leave encashment on the retirement of non-government salaried employees to Rs 25 lakh from Rs 3 lakh.

Income tax budget highlights

  • An individual with an annual income of Rs 9 lakh will be required to pay only Rs 45,000. This is only 5 percent of his or her income. It is a reduction of 25 percent on what he or she is required to pay now, ie, Rs 60,000.
  • Similarly, an individual with an income of Rs 15 lakh would be required to pay only Rs 1.5 lakh or 10 percent of his or her income, a reduction of 20 percent from the existing liability of Rs 1,87,500.
  • Each salaried person with an income of Rs 15.5 lakh or more will thus stand to benefit by Rs 52,500.

Budget 2023: Middle class woes memes flock the social media platforms

Budget 2023: Adequate funds allocated for replacing old government vehicles, says Nirmala Sitharaman

India News

Vijay removes astrologer from OSD post after political backlash

Tamil Nadu Chief Minister Vijay has withdrawn the appointment of his astrologer as Officer on Special Duty following widespread political backlash.

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Tamil Nadu Chief Minister C Joseph Vijay has removed his astrologer from the post of Officer on Special Duty (OSD) following strong political criticism over the controversial appointment.

The move comes just days after Vijay appointed his astrologer, Radhan Pandit Vettrivel, to a key position in the Chief Minister’s Office. The decision had triggered immediate backlash from political allies and opposition leaders, who questioned the relevance and appropriateness of appointing an astrologer to an official government post.

According to the report, the appointment drew criticism over concerns related to governance practices and the role of non-administrative figures in official decision-making. Several leaders argued that such a move could send the wrong message in a constitutional framework that emphasizes scientific temper in public administration.

Facing mounting pressure, Vijay has now decided to withdraw the appointment, marking a quick reversal in a politically sensitive matter that had already sparked debate across Tamil Nadu’s political circles.

The astrologer, who was previously seen as a close aide and had reportedly predicted Vijay’s electoral success, had been made OSD shortly after the formation of the government. However, the decision quickly became a point of controversy, forcing the administration to reconsider.

The development highlights the growing scrutiny around key appointments made by the new government and the political challenges facing Vijay in his early tenure as Chief Minister.

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Vijay wins floor test with 144 votes, secures power amid AIADMK split in Tamil Nadu

Vijay secures a decisive floor test victory in Tamil Nadu with 144 votes amid AIADMK split and opposition abstentions.

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Tamil Nadu Chief Minister and Tamilaga Vettri Kazhagam (TVK) leader C. Joseph Vijay has won a crucial vote of confidence in the state Assembly, securing 144 votes and comfortably crossing the majority mark. The result confirms the stability of his government following a politically charged floor test marked by shifting loyalties and opposition abstentions.

DMK walkout and aiadmk abstention shape vote dynamics

The Dravida Munnetra Kazhagam (DMK) walked out of the Assembly ahead of the vote with its 59 MLAs, while the All India Anna Dravida Munnetra Kazhagam (AIADMK), led by Edappadi K. Palaniswami, abstained from voting with its 47 MLAs.

This absence from two major opposition blocs significantly influenced the final numbers in the confidence motion.

144 votes secure majority for tvk government

Vijay’s government received support from 144 lawmakers in the 234-member Tamil Nadu Assembly, comfortably above the required majority mark. Only 22 members voted against the motion, while five MLAs chose to abstain.

The outcome ensures that the TVK-led government retains power, at least for now, in a politically fragmented Assembly.

25 aiadmk mlas break ranks to support vijay

A major political development emerged during the voting, with 25 AIADMK MLAs defying party leadership and voting in favour of Vijay’s government. This internal rebellion highlights a widening rift within the AIADMK and raises questions about its future cohesion under Palaniswami’s leadership.

The split has added a new dimension to Tamil Nadu politics, where cross-voting played a decisive role in shaping the final result.

Vijay calls victory a mandate for change

After the results were announced, Vijay described the outcome as a turning point, stating that his party symbol had “changed history.” He indicated that the TVK government would function as a minority administration focused on safeguarding the rights of all sections of society.

Political implications of a fractured opposition

While the floor test has secured Vijay’s position as chief minister, the deeper political story lies in the fragmentation of the opposition, particularly within the AIADMK. The emergence of rebel MLAs supporting TVK signals potential long-term realignments in Tamil Nadu’s political landscape.

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India hikes gold and silver import duty to 15% to curb overseas purchases

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India has increased import duties on gold and silver to 15% from the earlier 6%, according to government orders issued on Wednesday, as authorities move to curb overseas purchases of precious metals and reduce pressure on foreign exchange reserves.

Under the revised structure, the government has imposed a 10% basic customs duty along with a 5% Agriculture Infrastructure and Development Cess (AIDC), taking the effective import tax on gold and silver imports to 15%.

The move comes days after Prime Minister Narendra Modi urged citizens to avoid non-essential gold purchases for a year in order to help conserve foreign exchange reserves amid global economic uncertainty and tensions in West Asia.

India is the world’s second-largest consumer of precious metals and relies heavily on imports to meet domestic demand. Analysts believe the higher tariffs could help narrow the trade deficit and offer some support to the rupee, which recently touched record lows against the US dollar.

However, industry officials warned that the sharp increase in duties may revive smuggling activities, which had reduced after India lowered import duties in 2024. Bullion market experts said higher taxes could also dampen consumer demand as gold and silver prices are already trading at elevated levels.

Gold demand in India has remained strong in recent months, particularly for investment purposes, amid rising bullion prices and weaker returns from equities. According to reports, inflows into gold exchange-traded funds (ETFs) rose sharply during the March quarter.

Market reaction to the announcement was immediate, with domestic gold and silver futures rising sharply after the tariff hike was announced.

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