New Income Tax Slab – Important news for taxpayers. Actually how can you save tax in the new income tax slab. To know this, stay with the news till the end. Actually today we are going to tell you 11 points told by CA to save tax in this news. Let’s know in the news below…
Union Finance Minister Nirmala Sitharaman has presented the General Budget 2023 on Wednesday. In this, he has made changes in the income tax system. Some major changes have been made in the provisions of the Income Tax Act 1961 in Budget 2023. These changes are mainly related to salaried and middle class. Let us understand every change in the tax regime from 11 points.
1. Old Tax Regime
Under the Finance Bill 2023, no change has been made in the old tax regime.
2. New tax regime
According to the announcement of Budget 2023, the new tax regime will be the default. However, taxpayers can also opt for the old tax regime.
3. Utility of the new tax regime
Earlier, the new tax regime was applicable to ‘Individuals and Services’. Now its benefit has been extended to Individual, HUF, AOP, BOI.
4. Tax Slab Rates
The tax slab has been changed under the new tax regime. Earlier this tax slab was introduced in the year 2020 under the Income Tax Act.
Proposed tax slabs in budget 2023
| New tax regime | Revise new tax regime | ||
| Amount (in Rs.) | Tax Rates | Amount (in Rs.) | Tax Rates |
| 0-2.5L | nil | 0-3L | nil |
| 2.5L-5L | 5% | 3L-6L | 5% |
| 5L-7.5L | 10% | 6L-9L | 10% |
| 7.5L-10L | 15% | 9L-12L | 15% |
| 10L-12.5L | 20% | 12L-15L | 20% |
| 12.5L-15L | 25% | Above 15L | 30% |
| Above 15L | 30% |
Earlier, a person whose annual income was Rs 15,00,000 lakh had to pay tax of Rs 1,87,500. But, now the tax amount has come down to Rs.1,50,000. This means that now taxpayers will get the benefit of Rs 37,500.
5. Maximum amount on which tax will not have to be paid
According to the new tax regime, earlier no tax was to be paid on annual income up to Rs.5,00,000. But, now the Finance Minister has increased this limit to Rs 7,50,000. This includes standard deduction of Rs 50,000 under the new tax regime.
6. Standard deduction on salary:
Salaried employees are eligible for standard deduction from their salary income. Under the new tax regime, it will be Rs. 50,000/-, earlier it was nil.
7. Long Term Capital Gain (LTCG)
Tax exemption has been removed on long term capital gain of more than Rs 10 crore. Now the taxpayer will have to pay tax at the rate of 20 per cent on long term capital gain of more than Rs 10 crore.
8. Agniveer Corpus Fund
Payment received from Agniveer Corpus Fund is exempted. Apart from this, the government has also proposed to provide tax deduction on the amount of contribution made by the Agniveers and the Central Government on ‘Agniveer Corpus Fund’.
9. Estimated Taxation
(a) Now persons carrying on business and having receipts, turnover up to Rs.3 crore are entitled to opt for presumptive taxation under section 44AD of the Income Tax Act, 1961 and declare income at the rate of 8 per cent in case of cash. In case of transaction or in case of non-cash transaction of gross turnover, return can be filed at the rate of 6%. Earlier this limit was Rs 2 crore.
( b ) Persons carrying on business and having gross receipt or turnover up to Rs.75 lakh are entitled to opt for presumptive taxation under section 44 ADA of the Income Tax Act, 1961 and declare income at the rate of 50 per cent of gross receipt or turnover You can file returns accordingly. Earlier this limit was Rs 50 lakh.
In both the above cases, it has to be kept in mind that the gross receipt or cash turnover should not exceed 5% of the total receipt of the financial year.
10. Announcements of Saving Schemes
- The Finance Minister has proposed the following savings schemes or changes in existing schemes.
- Senior Citizen Savings Scheme: The maximum deposit limit will be increased from Rs 15 lakh to Rs 30 lakh.
- For joint account holders, the post office monthly income scheme limit has been doubled from Rs 9 lakh to Rs 15 lakh.
- Mahila Samman Savings Certificate: A one-time new savings scheme for women for 2 years till March 2025. It will provide facility to deposit up to Rs 2 lakh for a period of 2 years at a fixed interest rate of 7.5 per cent per annum. There will also be an option for partial withdrawal.
11. Other proposed changes
- The Finance Minister has proposed to reduce the highest surcharge rate from 37 per cent to 25 per cent under the new tax regime.
- In respect of family pension, now under the new tax regime Rs. 15,000/- or 1/3rd of the pension, whichever is less, is available as deduction.
- The exemption limit on leave encashment received at the time of retirement of a non-government salaried employee has been increased from Rs.3,00,000 to Rs.25,00,000.
- TDS rate on withdrawal of taxable portion of EPF has been reduced from 30 per cent to 20 per cent in non-PAN cases.
- The government has removed tax exemption on income received from life insurance policy, if the annual premium is more than Rs.5,00,000.
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