How much Income Tax will you have to pay if earning Rs 7 lakh, Rs 10 lakh, Rs 15 lakh under New Regime?
In a bid to make the New Tax Regime more effective to taxpayers, Finance Minister Nirmala Sitharaman has proposed several changes in it in the Budget 2023.
For instance, the rebate limit in the new tax regime has been proposed to be increased to Rs 7 lakh from Rs 5 lakh earlier. Thus, persons in the new tax regime, with income up to Rs 7 lakh, will not have to pay any tax now.
Old vs New Tax Regime: How will Budget 2023 benefit taxpayers under both regimes?
Old vs New Income Tax Regime:?Hit hard by the high inflation and the rising cost of living, there were expectations galore from the Union Budget 2023. Taxpayers and the common man were looking towards Finance Minister Nirmala Sitharaman with much hope as they expected her to do something for them, particularly for reducing their tax burden.
Increase in the section 80C deduction limit from Rs 1.5 lakh to at least Rs 2 lakh, increase in the basic income tax exemption limit to Rs 5 lakh, more tax sops for homebuyers and investors etc were among the key expectations of taxpayers. Taxpayers were also expecting some changes in the New Tax Regime to make it more attractive.
Budget 2023: FM proposes to make New Tax Regime a default option – Should you opt?
Union Minister of Finance Nirmala Sitharaman while presenting Budget 2023 has proposed certain changes to the personal income tax structure for the taxpayers. The proposals aim to help taxpayers lower their tax liability and effectively save more. However, for the government it is an outflow. The FM in her Union Budget 2023 speech says, “the total revenue forgone is about Rs 35,000 crore annually.”
The most important proposal pertaining to individual taxation is making the New Tax Regime as the Default option for the taxpayers.
Tax Saving on Income of Rs 10 lakh, Rs 50 Lakh, Rs 1 crore and Rs 10 crore in New Tax Regime: Explained
Finance Minister Nirmala Sitharaman today announced several tax benefits for individual taxpayers in the New Tax Regime. While no changes have been made to the Old Tax Regime, the Government has tried to make the New Tax Regime attractive by increasing the tax rebate limit from Rs 5 lakh to Rs 7 lakh. Also, several measures have been announced that will benefit individuals earning more than Rs 7 lakh per year.
The Finance Minister proposed the following new tax rates under the New Tax Regime:
Budget 2023: Mahila Samman Saving Certificate (MSSC) Deposit Limit, Interest Rate, Tenure and Benefits – Explained
Union Minister of Finance Nirmala Sitharaman while presenting Budget 2023 has proposed to introduce an investment scheme for Women investors. For commemorating Azadi Ka Amrit Mahotsav, a 1-time new small saving scheme Mahila Samman Savings certificate will be available for a 2-year period up to March 2025.
This will offer deposit facility up to Rs 2 lakh in the name of women or girls for a tenor of 2 years at fixed interest rate of 7.5 per cent with partial withdrawal option.
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Five major announcements on Income Tax in Budget 2023-24
The Union Budget 2023-24 has introduced a slew of changes in the Income Tax slabs under the new tax regime, while the reduction of the surcharge rate from 37 per cent to 25 per cent will bring down the tax outgo for high-income groups.
Adhil Shetty, CEO, Bankbazaar.com, says, “Taxpayers earning above Rs 15 lakh will be taxed at 30% in both regimes. In the new regime, due to the enhanced tax brackets, the taxes for anyone earning more than Rs 15 lakh will marginally reduce, whereas nothing changes in the old regime. The government has proposed to reduce the highest surcharge rate from 37 per cent to 25 per cent in the new tax regime. It would mean lower taxes for anyone earning more than Rs 5 crore.”
Budget 2023: Govt to launch Rs 2,200-crore Aatmanirbhar clean plant programme, says Nirmala Sitharaman
Finance Minister Nirmala Sitharaman on Wednesday said that the government will launch a Rs 2,200-crore Aatmanirbhar clean plant programme.
While presenting the Budget 2023-24, Sitharaman said that an agriculture accelerator fund will also be set up to encourage agri-startups in rural areas.
She further said, to enhance yield of extra long staple cotton, the government will adopt a cluster-based and value-chain approach. The government will also support Hyderabad-based millet institute as a centre of excellence.
Budget 2023: Finance Minister calls for replacement of old governments old vehicles including ambulances under Scrappage Policy
The focus on reducing carbon emissions and high pollution levels certainly found focus in the Budget 2023. Finance Minister Nirmala Sitharaman said that the government will allocate additional funds to replace old vehicles and ambulances used by both central and state governments.
The Vehicle Scrappage Policy which was introduced in Budget 2021 aimed to replace old polluting vehicles. The policy called for fitness tests to be conducted on private vehicles older than 20 years, and commercial vehicles older than 15 years.
Defence allocation in Budget 2023 sees moderate increase due to pension’s bill
The Defence budget for FY2023-24 has been increased to Rs 5.94 lakh crore which is around 13.02 percent higher than the last year’s allocation of Rs 5.25 lakh crore and 1.97 per cent of the estimated GDP (gross domestic product). The pension’s bill has gone up significantly due to the recent revision of One Rank One Pension scheme (OROP) and this has resulted in an additional annual expenditure of approximately Rs 8,450 crore.
This year there was no mention of defence in the budget speech delivered by the Finance minister Nirmala Sitharaman.
Adani Enterprises drags Nifty 50 into losses; NSE index ends in red, even as Sensex closes in green
Adani Enterprises and Adani Ports & SEZ dragged the NSE Nifty 50 index down by 0.25% on Wednesday even as the BSE Sensex closed 150 points higher from the previous day. Since the 30 stocks that comprise BSE that do not include the Adani Group firms, despite the excessive turbulence and heightened volatility in the domestic equity markets as a result of the Union Budget 2023, the Sensex successfully pared its intraday losses, gaining almost 900 points from the day’s lows. Despite gaining intraday, Nifty closed 355.7 points lower from the day’s high as the Adani Group heavyweights continued to bleed.