Income tax slab in budget 2023

Budget 2023 Income Tax Slab Rate Change Expectations: As the economy has been resilient after the pandemic and returning to a growth trajectory, tax experts are expecting some changes in Income Tax slab rates in Union Budget 2023, especially for those in the higher tax slabs. Deloitte is expecting tax relief for individuals in higher tax slabs. “Per the current income tax provisions, an individual is required to pay taxes based on slab rates. The highest slab rate (after including surcharge and cess) for income exceeding INR 5 crore in India is at present 42.744 per cent,” said Tapati Ghose, Partner, Deloitte in her Budget expectations. New Tax Regime: Exemption limit rises, here’s how it will work for private sector employees “The tax rate for individuals has not been changed since FY2017-18 (new tax regime bought in FY2020-21). Hence, to give more purchasing power to individuals and some relief to the employed taxpayers, the highest tax rate of 30 percent should be reduced to 25 percent and the threshold limit for the highest tax rate be increased from INR 10 lakh to INR 20 lakh. Therefore, the proposed highest slab rate (including surcharge and cess) can be reduced to 35.62 percent,” Ghose said. Also Read: 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 cur...

Income Tax Budget 2023 Highlights: 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 2.5 lakh to Rs 3 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 taxpayers, pensioners and family pensioners under the new tax regime. 5) Highest surcharge rate reduced from 37 per cent to 25 per cent in the new tax regime. Sitharaman announced a one-time small savings scheme ‘Mahila Samman Saving Certificate’. It will be available for two years. The interest rate has been fixed at 7.5 per cent per annum. The maximum investment limit will be Rs 2 lakh. A partial withdrawal option will also be available. The maximum investment limit under Senior Citizen Savings Scheme (SCSS) has been hiked from Rs 15 lakh to Rs 30 lakh. For business establishments required to have Permanent Account Number (PAN), it will be used as a common identifier for all digital systems of specified government agencies, announced Sitharaman in Budget 2023. Commenting on the announcements of Budget 2023, Sudhakar Sethuraman, Partne...

Old vs new current income tax slabs: When it comes to Budget, the only thing that the salaried class look forward to is the income tax rebate. Finance Minister Nirmala Sitharaman while presenting Budget 2023 on 1 February 2023, tweaked the slabs to provide some relief to the middle class. "It is proposed to increase the rebate for the resident individual under the new regime so that they do not pay tax if their total income is up to ₹7 lakh," Sitharaman said. Currently, a 5 per cent tax is levied on total income between ₹2.5 lakh and ₹5 lakh, 10 per cent on ₹5 lakh to ₹7.5 lakh, 15 per cent on ₹7.5 lakh to ₹10 lakh, 20 per cent on ₹10 lakh to ₹12.5 lakh, 25 per cent on ₹12.5 lakh to ₹15 lakh, and 30 per cent on above ₹15 lakh. Budget 2023: Catch all the Live updates here Budget 2023: Old income tax slab vs new income tax slab New tax slabs 1) No tax would be levied for income up to ₹3 lakh 2) Income between ₹3-6 lakh would be taxed at 5 per cent 3) Income between ₹6-9 lakh would be taxed at 10 per cent 4) Income between ₹9-12 lakh at 15 per cent 5) Income between ₹12-15 lakh at 20 per cent 6) Income of ₹15 lakh and above will be taxed at 30 per cent. Tax Slabs Old Tax Regime New Tax Regime 0-3 lakh NIL NIL 3-6 lakh 5% NIL (Income limit for rebate of income tax increased from ₹5 lakh to ₹7 Lakh) 6-9 lakh 10% 10% 9-12c lakh 15% 15% 12-15 lakh 20% 20% Above 15 lakh 30% 30% Old tax slabs 1) Income up to ₹2.5 is exempt from taxation under old tax regime. 2) Income between ₹2.5 ...

Finance Minister announcing the new tax slabs. Photo: Screenshot via YouTube/Sansad TV Stating that the new regime would become the default, the Minister said taxpayers could, however, still opt to file under the old regime, which allows for tax exemptions and deductions on investments and expenses such as HRA (house rent allowance). The Budget offered no changes for those opting to stay with the old regime. Those switching to the new tax regime can also hereafter avail of the ₹50,000 standard deduction. Watch | Budget 2023 | Mobile phones, TVs to get cheaper; toys, bicycles, automobiles dearer Those earning up to ₹7 lakh annually and opting for new tax regime, could save ₹33,800. Those with income up to ₹10 lakh would save ₹23,400 and ₹49,400 saving would accrue to those earning up to ₹15 lakh. Ms. Sitharaman also cut surcharge from 37% to 25% for individuals with income above ₹2 crore. This would translate into a saving of about ₹20 lakh for those having a salary income of about ₹5.5 crore. In her Budget speech, Ms. Sitharaman said currently individuals with total income of up to ₹5 lakh do not pay any tax due to rebate. “It is proposed to increase the rebate for the resident individual under the new regime so that they do not pay tax if their total income is up to ₹7 lakh,” Ms. Sitharaman explained. The Minister added that the number of slabs would be reduced to five. The new slabs will come into force with effect from April 1. Here is a list of announcements relating t...

Income Tax Budget 2023 Highlights: 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 2.5 lakh to Rs 3 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 taxpayers, pensioners and family pensioners under the new tax regime. 5) Highest surcharge rate reduced from 37 per cent to 25 per cent in the new tax regime. Sitharaman announced a one-time small savings scheme ‘Mahila Samman Saving Certificate’. It will be available for two years. The interest rate has been fixed at 7.5 per cent per annum. The maximum investment limit will be Rs 2 lakh. A partial withdrawal option will also be available. The maximum investment limit under Senior Citizen Savings Scheme (SCSS) has been hiked from Rs 15 lakh to Rs 30 lakh. For business establishments required to have Permanent Account Number (PAN), it will be used as a common identifier for all digital systems of specified government agencies, announced Sitharaman in Budget 2023. Commenting on the announcements of Budget 2023, Sudhakar Sethuraman, Partne...

Old vs new current income tax slabs: When it comes to Budget, the only thing that the salaried class look forward to is the income tax rebate. Finance Minister Nirmala Sitharaman while presenting Budget 2023 on 1 February 2023, tweaked the slabs to provide some relief to the middle class. "It is proposed to increase the rebate for the resident individual under the new regime so that they do not pay tax if their total income is up to ₹7 lakh," Sitharaman said. Currently, a 5 per cent tax is levied on total income between ₹2.5 lakh and ₹5 lakh, 10 per cent on ₹5 lakh to ₹7.5 lakh, 15 per cent on ₹7.5 lakh to ₹10 lakh, 20 per cent on ₹10 lakh to ₹12.5 lakh, 25 per cent on ₹12.5 lakh to ₹15 lakh, and 30 per cent on above ₹15 lakh. Budget 2023: Catch all the Live updates here Budget 2023: Old income tax slab vs new income tax slab New tax slabs 1) No tax would be levied for income up to ₹3 lakh 2) Income between ₹3-6 lakh would be taxed at 5 per cent 3) Income between ₹6-9 lakh would be taxed at 10 per cent 4) Income between ₹9-12 lakh at 15 per cent 5) Income between ₹12-15 lakh at 20 per cent 6) Income of ₹15 lakh and above will be taxed at 30 per cent. Tax Slabs Old Tax Regime New Tax Regime 0-3 lakh NIL NIL 3-6 lakh 5% NIL (Income limit for rebate of income tax increased from ₹5 lakh to ₹7 Lakh) 6-9 lakh 10% 10% 9-12c lakh 15% 15% 12-15 lakh 20% 20% Above 15 lakh 30% 30% Old tax slabs 1) Income up to ₹2.5 is exempt from taxation under old tax regime. 2) Income between ₹2.5 ...

Finance Minister announcing the new tax slabs. Photo: Screenshot via YouTube/Sansad TV Stating that the new regime would become the default, the Minister said taxpayers could, however, still opt to file under the old regime, which allows for tax exemptions and deductions on investments and expenses such as HRA (house rent allowance). The Budget offered no changes for those opting to stay with the old regime. Those switching to the new tax regime can also hereafter avail of the ₹50,000 standard deduction. Watch | Budget 2023 | Mobile phones, TVs to get cheaper; toys, bicycles, automobiles dearer Those earning up to ₹7 lakh annually and opting for new tax regime, could save ₹33,800. Those with income up to ₹10 lakh would save ₹23,400 and ₹49,400 saving would accrue to those earning up to ₹15 lakh. Ms. Sitharaman also cut surcharge from 37% to 25% for individuals with income above ₹2 crore. This would translate into a saving of about ₹20 lakh for those having a salary income of about ₹5.5 crore. In her Budget speech, Ms. Sitharaman said currently individuals with total income of up to ₹5 lakh do not pay any tax due to rebate. “It is proposed to increase the rebate for the resident individual under the new regime so that they do not pay tax if their total income is up to ₹7 lakh,” Ms. Sitharaman explained. The Minister added that the number of slabs would be reduced to five. The new slabs will come into force with effect from April 1. Here is a list of announcements relating t...

Budget 2023 Income Tax Slab Rate Change Expectations: As the economy has been resilient after the pandemic and returning to a growth trajectory, tax experts are expecting some changes in Income Tax slab rates in Union Budget 2023, especially for those in the higher tax slabs. Deloitte is expecting tax relief for individuals in higher tax slabs. “Per the current income tax provisions, an individual is required to pay taxes based on slab rates. The highest slab rate (after including surcharge and cess) for income exceeding INR 5 crore in India is at present 42.744 per cent,” said Tapati Ghose, Partner, Deloitte in her Budget expectations. New Tax Regime: Exemption limit rises, here’s how it will work for private sector employees “The tax rate for individuals has not been changed since FY2017-18 (new tax regime bought in FY2020-21). Hence, to give more purchasing power to individuals and some relief to the employed taxpayers, the highest tax rate of 30 percent should be reduced to 25 percent and the threshold limit for the highest tax rate be increased from INR 10 lakh to INR 20 lakh. Therefore, the proposed highest slab rate (including surcharge and cess) can be reduced to 35.62 percent,” Ghose said. Also Read: 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 cur...