At present, the figures of inflation have also increased. Seeing this, hopes are being raised that perhaps this time some changes can be seen in the tax slab. Let us tell you that the common man was disappointed in the matter of tax slabs in the last Union Budget.
New Delhi: Preparations for the budget of the year 2023 have started. The common man has high hopes for tax relief in this budget. However, at present the figures of inflation have also increased. Seeing this, hopes are being raised that perhaps this time some changes can be seen in the tax slab. Let us tell you that the common man was disappointed in the matter of tax slabs in the last Union Budget.
Tax payers can get relief
At present, annual income up to Rs 2.5 lakh is tax free for taxpayers. According to the news going on in the media, the government is considering increasing this scope. Suggestions have also been sought from the departments regarding this. Such information is coming out that the scope of this tax slab can be increased from 3 lakh to 5 lakh rupees. Let us inform that the last time in the year 2014, there was a change in the limit of exemption in income tax. At that time this limit was increased from Rs 2 lakh per annum to Rs 2.5 lakh per annum.
There can also be a change in the tax regime
The government had announced the new tax regime in the budget 2020. This is an alternative tax slab to the old tax slab. In this new system, no exemption was prescribed for tax payers. Directly according to the slab, tax payers do not get the benefit of any kind of exemption. Tax is deducted directly according to the tax slab. According to the news going on in the media, now the government is planning to change this system as well.
According to Deloitte, the revision of tax slab rates in Budget 2023 should be as follows:
- For income above Rs 20 lakh, the tax rate should be reduced from the current 30% to 25%.
- For income in the Rs 10-20 lakh bracket, the tax rate should be reduced from the current 30% to 20%.
- In the new tax regime, the slab rate for income in the range of Rs 10-Rs 20 lakh bracket should be reduced from the current 30% to 20%.
- For income above Rs 20 lakh, the tax rate under the new regime should be reduced from the current 30% to 25%.
- Budget 2023 is expected to be presented by Finance Minister Nirmala Sitharaman on February 1, 2023.
