New Income Tax Slab 2023 in Budget: There have been 5 major announcements regarding personal income tax in the Union Budget. In this budget, the new tax regime has been made the default tax regime. But taxpayers will have the option to choose the old regime. Know the complete details.
Standard deduction limit has been increased for salaried taxpayers and pensioners, but it will be applicable on income of Rs 15.5 lakh. On this much income, he will get a profit of Rs.52,500. On income below this, the standard deduction limit will remain 50,000.
New Income Tax Slab 2023 in Budget: The budget of the country has been presented. Finance Minister Nirmala Sitharaman presented the country’s Union Budget in the Parliament February 1, 2023. There were hopes of relief to the employed people across the country regarding income tax and the Finance Minister has made big announcements regarding income tax .
There have been 5 big announcements in personal income tax. First of all, he said that the rebate which has been available on income up to 5 lakhs in the new tax regime, will be implemented for income up to 7 lakhs. i.e. new tax regimeNo tax will have to be paid on income up to 7 lakhs with rebate. In this budget, the new tax regime has been made the default tax regime. But taxpayers will have the option to choose the old regime.
Apart from this, the 6 income tax slabs implemented in 2020 were reduced to 5 now. In the new regime, the basic exemption on income tax will be up to Rs 3 lakh. Along with this, the benefit of standard deduction will be available in the new tax regime.
Income Tax Slab Budget 2023 Announcements: 5 big announcements on income tax
1. In the old and new tax regime, those with income up to 5 lakh do not pay any kind of tax. But the limit of rebate is being increased to Rs 7 lakh in the new tax regime. That is, in the new tax regime, those with an income of 7 lakhs will no longer have to pay any tax.
2. A new tax regime was brought in 2020 for the middle class, which had 6 tax slabs, it is being reduced to 5. And the tax exemption limit has been increased from 2.5 lakh to 3 lakh.
3. Standard deduction limit has been increased for salaried taxpayers and pensioners, but it will be applicable on income of Rs 15.5 lakh. On this much income, he will get a profit of Rs.52,500. On income below this, the standard deduction limit will remain 50,000.
4. The new tax regime will be the default tax regime, but you will have the option of the old tax regime.
5. Announcement has been made on leave encashment. Now the exemption limit has been increased to 25 lakhs for encashing leave on retirement of a salaried employee. Till now this exemption was available on the limit up to 3 lakhs.
6. The maximum tax rate in the country is 42.74%, which has been reduced from 37% to 25% in the new tax regime. Now the maximum tax rate will be reduced to 39%.
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