India Budget 2023! Personal Tax. (New Tax Regime)

Budget 2023! Personal Tax. (New Tax Regime)

Don't get excited seeing the image.

Here are the Pointers

- Basic exemption limit is hiked to Rs 3 lakh

- Rebate under section 87A has been hiked from Rs 5 lakh to Rs 7 lakh.

- The income tax slabs under the new income tax regime will be as follows:

a) Rs 0 to Rs 3 lakh - 0% tax

b) Rs 3 to 6 lakh - 5% tax

c) Rs 6 to 9 lakh - 10% tax

d) Rs 9 lakh to Rs 12 lakh - 15% tax

e) Rs 12 lakh to Rs 15 lakh - 20% tax

f) Above Rs 15 lakh above - 30% tax

So Individuals with income up to 7 Lac, there is no TAX. If more than 7 then slabs will be applicable.

So if your total income is

- 7 lac then 0 tax.

- If your income is 10 Lac then

( First 3 Lac : 0, 3-6Lac: 15k, 6-9Lac: 30k, 9-10Lac: 15k )

which makes 15k + 30k + 15k= 60k Income Tax .

In Old Tax Regime - it will be 1.2 Lac ( Post 80C exemption - 85k )

But also you can have HRA exemption, 80CCA, Medical insurance, etc in the OLD tax regime. But not in new.

- Individuals with income of Rs 15.5 lakh and above have been made eligible for a standard deduction of Rs 52,500 in the new tax regime in Budget 2023.

- Further, the new income tax regime becomes the default tax regime. However, the individuals will have the option to continue with the old income tax regime

Downside

- No Change in Old Tax Regime.

- Expected some relaxation on 80C, But basically, nothing changed for Old Regime. Govt clearly focused on Individuals with less than 10-12 Lac. (As per the study 90% of Indians' avg income is less than 12Lac ).

- So whoever is earning more than 12 LPA, Sees mostly no benefit with this, As they can get more tax exemption with 80C, Donations, HRA, etc.

So choose wisely!

#budget2023?#itr?#taxregime?#incometax