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The budget this year was announced with some major modifications to the new income tax regime. The key highlights included reduced tax rates and a rebate on tax for income up to INR 7 lakh under the new regime.
Let’s see how it looks when compared with the old income tax regime? But before that here are some key highlights of the Budget 2023 with regard to the healthcare and insurance sector:
|Income Tax Rate
|Up to INR 3,00,000
|INR 3,00,000 – INR 6,00,000
|INR 6,00,000 – INR 9,00,000
|INR 9,00,000 – INR 12,00,000
|INR 12,00,000 – INR 15,00,000
|INR 15,00,000 and above
|Income Tax Rate
|Up to INR 2,50,000
|INR 2,50,001 – INR 5,00,000
|INR 5,00,001- INR 10,00,000
|INR 10,00,000 and above
The budget 2023 gave a new dimension to the new tax regime. It not just reduced the tax rates, but also introduced standard deductions. On the other hand, the old regime tax slab was not altered at all. Further to it, the new tax regime has been made the default tax structure with wide cover.
Here are the major changes announced:
Right now, people who earn an income of up to INR 5 lakh are not paying tax on income under both the tax regimes. However, after the latest announcements people earning an income of up to INR 7 lakh are safe from tax liabilities.
A salaried taxpayer can now avail a deduction of INR 50,000 from the total taxable income under the new income tax regime
Now you know the various changes being made to the new income tax regime and how different they are from the old tax regime. So, which one do you think would suit you?
The new income tax regime allows a taxpayer earning over INR 7.5 lakh per annum the option to stay away from paying tax considering the fact that there is an INR 50,000 standard deduction being introduced. But what if your income is higher than that as per the income tax brackets India?
Further, you must also remember that nothing has changed under the income tax slabs old regime, which has been the mainstay for taxpayers in India for a long time now with enough scope for tax savings.
Both the tax regimes have their advantages and disadvantages. It actually depends on your income and the tax saving plans that you have opted for along with a lot of other things, to decide on the right tax slab to choose from.
So, choose between old and new tax regime prudently and wisely after taking into consideration all the Ifs and Buts and pros and cons.
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As per the new budget announced, changes were declared in income tax slabs of New Tax Regime with up to INR 7 lakh rebate being offered.
There are many considerations that have to be looked at while considering which tax regime would suit. Your salary is the main thing that would help you decide which tax slab to pick.
Below is the slab for taxable income in India:
Up to INR 3,00,000 – Nil
INR 3,00,000 – INR 6,00,000 - 5%
INR 6,00,000 – INR 9,00,000 - 10%
INR 9,00,000 – INR 12,00,000 - 15%
INR 12,00,000 - INR 15,00,000 - 20%
INR 15,00,000 and above - 30%
No, Changes have been made only in the new tax regime and not in the old tax regime in the budget 2023-24.
As per the 2023 budget results, no announcement has been made regarding changes to the section 80C limit of Income-tax.
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