Union Budget 2023: Finance Minister Nirmala Sitharaman has made major changes in the tax slabs of the new income tax regime. Know if your income is between 5 to 15 lakh rupees, then how much less tax you will have to pay now.
New Tax Regime: Under the new income tax system, those who have an annual income of up to Rs 7 lakh will not have to pay any tax. To make the new income tax system attractive, Finance Minister Nirmala Sitharaman has made major changes in the tax slab under the new tax regime.
Those whose income limit is between Rs 3 lakh to Rs 7 lakh and the tax on which is Rs 25000 under the new tax regime, the government will give tax rebate under 87A in the Income Tax Act. That is, you will not have to pay this tax. But those whose annual income is more than Rs 7 lakh will not get the benefit of this rebate.
Suppose your annual income is Rs 9 lakh, then you will not get the benefit of rebate and you will have to pay a total income tax of Rs 45,000. However, this is 25% less than the Rs 60,000 being paid under the old slab.
Tax on income of Rs 5 lakh!
Suppose a person’s income is Rs 5 lakh, then before the new tax regime, a tax of Rs 12,500 was levied on him. The government used to give tax rebate, so no tax had to be paid. Now a tax of Rs 10,000 will be made on those earning up to Rs 5 lakh. But the government will give rebate on this, so no tax will have to be paid.
How much tax on income of Rs 10 lakh!
If a person’s income is Rs 10 lakh, then according to the old tax slab of the new tax regime, he had to pay income tax of Rs 75,000. But due to the change in the tax slab in the new tax regime, those with an annual income of up to Rs 10 lakh will have to pay income tax of Rs 60,000, which means an annual savings of Rs 15,000.
Now how much tax on income of Rs 15 lakhs!
Suppose a person’s annual income is Rs 15 lakh, then under the old slab of the new tax system, that taxpayer would have to pay income tax of Rs 1,87,500. But now such taxpayers will have to pay tax of Rs 1,50,000 i.e. Rs 37500 income tax will be saved.
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