Union Budget 2023

No Income tax on income up to Rs 7.00 lakh but, if crosses above Rs 7 lakhs, the rebate of Rs 25,000 will not be allowed and the tax liability on income of Rs 7,01,000 be Rs 25,100/- (Rs. 26,104/- with Cess) though income above Rs 7 lakhs is just Rs 1,000.

This anomaly/ challenge will continue for taxpayers having income up to Rs 7,29,000 [Tax Liability would be Rs. 27,900/- (Rs. 29,016 with Cess)].

To avoid this anomaly, Relief should be provided in income tax till incremental income upto Rs. 7,29,000