Budget 2023
New tax rates:
0 to Rs 3 lakhs – Nil
Rs 3 to 6 lakhs – 5%
Rs 6 to 9 Lakhs – 10%
Rs 9 to 12 Lakhs – 15%
Rs 12 to 15 Lakhs – 20%
Above 15 Lakhs – 30%
No income tax will be charged till Rs 7 lakh in the new tax regime.
A new tax regime is the default tax regime
If income is under Rs 7 lakh then no income tax will be charged
If income is more than 7 lakh then pay as per slabs:
0 to 3L – Nil
3 to 6L – 5%
6 to 9L – 10%
9 to 12L – 15%
12 to 15L – 20%
Above 15L – 30%
You can also opt for the old tax regime
Change in Income Tax slab – FAQ
- When there is a tax of 10% on a Rs 6-9 lac slab, how much is 0 up to Rs 7 lac?
Section 87a, Govt is giving a rebate on tax so if ur annual income is Rs 7 lac then by tax slab ur tax is Rs 25000 but by sec 87a u will get a rebate
Your tax will become zero but if ur income is more than 7 lac then u have to pay the whole tax.
What are the old n new tax regimes n whats change in the old regime
There r 2 methods to calculate ur tax n u can use whichever u want. slab rates r different in both systems. Slab rate in old
Tax is higher in the old regime but there r investment benefits while in the new tax is lower but no benefit on investment. Let me explain by example (m not using SD here)-
Suppose our annual income is: Rs 8 lac
U r free to use the old or new regime
Under the new regime, Ur tax will be
0-3 L : 0
3-6 L: 5% = Rs 15K
6-8 L: 10% = Rs 20K
Total: Rs 35K + cess
Under the old regime :
Rs 2.5L-5L : 5% = Rs 12.5K
5L-8L : 20% = Rs 60K
Total: Rs 72.5 K
But there is a twist
In the old regime, u can take benefit of Rs 1.5 Lac under 80C, 80D, LTA, HRA, Home loan interest
So by using all these, u can bring ur tax almost near to 0
So if u r an investment person n u have a home loan, then the old regime will be better for u but if u don’t like to invest n save in a tax saving scheme, then the new tax regime will be better for u. In the new regime, u don’t need to submit
any document, any proof
- Why Govt didn’t change the slab rate in the old regimen and only changed it in the new regime?
The economy is recovering from the Covid lock down n Probably govt wants u to pump money into the market so that production will improve, employment will be generated n the economy will grow.
- Any investment benefit in the new regime?
No there is no 80C, 80D, Home loan, HRA, or LTA benefit in the new regime. These benefits are only in the old regime.
