Income Tax Slab: Union Finance Minister Nirmala Sitharaman will present the budget on 1 February. Many big announcements are expected in this budget. The government can give some relief especially regarding the tax slab, but before that know the new or existing tax slab and the old tax slab.
Discussion has started regarding the tax slab in the Union Budget 2023, which is going to be presented on February 1. People are expecting more scope of exemption in the tax slab. This is the last budget before the general elections to be held in 2024. In such a situation, it is understood that the government can give a big gift to the taxpayer. Since 2015, there has been no change in the tax slab by the government. According to the old tax slab, if your income is up to Rs 2.5 lakh, then you do not have to pay any kind of tax. If there is an income of 2.5 lakh to 5 lakh, then you will have to pay 5 percent tax.
According to the new tax slab presented in the budget for 2022-23, if your income is 5 to 7.50 lakhs, then you have to pay a total tax of 10 percent. Apart from this, income up to Rs 3 lakh for persons in the age group of 60 to 80 years and Rs 5 lakh for senior citizens above 80 years of age is tax free. 25% tax has to be paid on 12.5-15 lakhs and 30% tax on income above 15 lakhs. A total of seven slabs have been created in the new tax slab.
While in the old tax slab, 5% tax has to be paid on income from 2.5 lakh to 5 lakh and 20% tax on income from 5 to 10 lakh and 30% tax for income above 10 lakh. The maximum impact of tax slabs falls on employed people. This is the reason why in every budget there is a demand to increase the tax slab so that there is an increase in the salary coming in the hands of the employed people.
The government gives you two options through new and old in the tax slab. It depends on you which one to choose. You can adopt only one tax system for a financial year. It is not at all like that you can take advantage of both the taxes simultaneously. Yes, it is definitely that in the next financial year you can make changes in the tax system.
