New Income Tax Slab Budget 2023 LIVE Updates- Blogs Year

Income Tax Slab Budget 2023

Finance Minister Nirmala Sitharaman tweaked the income tax slabs under the new tax regime.

What’s new in the new income tax regime

1) Basic exemption limit is hiked from Rs 3 lakh to Rs 2.5 lakh
2) Rebate under section 87A has been hiked from Rs 5 lakh to Rs 7 lakh
3) The income tax slabs under the new income tax regime will be as follows:

  • Up to Rs 3 lakh – 0% tax
  • Between Rs 3 and 6 lakh – 5% tax
  • Between Rs 6 and 9 lakh – 10% tax
  • Between Rs 9 lakh and Rs 12 lakh – 15% tax
  • Between Rs 12 lakh and Rs 15 lakh – 20% tax
  • Above Rs 15 lakh above – 30% tax

4) Standard deduction introduced for salaried and individual taxpayers under the new tax regime
5) Highest surcharge rate reduced from 37 per cent to 25 per cent in the new tax regime

Mahila Samman Saving Certificate, a one-time small savings programme, was introduced by Sitharaman. The product will be offered for two years. 7.5% per year has been set as the interest rate. The utmost amount that can be invested is Rs 2 lakh. There will also be an option for a partial withdrawal.

The Senior Citizen Savings Scheme (SCSS) has increased the maximum investment amount from Rs 15 lakh to Rs 30 lakh.

According to Sitharaman’s Budget 2023 announcement, businesses that are required to have a Permanent Account Number (PAN) will use it as a standard identification for all digital systems of the designated government institutions.

In response to the Budget 2023 pronouncements, Sudhakar Sethuraman, Partner, Deloitte India, said: “With improved slabs limitations, this budget appears optimistic for middle class taxpayers. It would be greatly welcomed if the leave encashment exemption was reviewed in light of typical pay levels. One needs to be ready for the future direction of the new tax system. Another example of how tax breaks and exemptions can be more effectively targeted is the cap on capital gains exemptions, which is set at INR 10 crore for residential properties, and the proposed cap on exemptions for insurance policy income. The budget can be stated to significantly address the needs of the hard-working middle-class taxpayers thanks to a streamlined process and easier compliance requirements.”

“By raising rebates and making sure that no income tax is collected on income up to Rs. 7 lakh, the Finance Minister has given small taxpayers a boost. Additionally, the extended standard deduction and altered tax slabs under the new tax system would ensure that the salaried class has a bit extra money this year to support investments or consumption in India “according to Pallav Pradyumn Narang, a partner at the chartered accounting firm CNK.

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