Tax Exemption Has Been Increased From 5 To 7 Lakhs
Finance Minister Nirmala Sitharaman announced this in her budget speech on Wednesday. Under the New Tax Regime, if a person’s annual income is up to Rs 7 lakh, then no tax will have to be paid. At the same time, tax will be deducted on the income more than this according to the new rates.
Budget-2023 in Parliament on February 1
Budget-2023 (Budget 2023) was presented in the Parliament on Wednesday i.e. 1 February. The people of the country were waiting the most for this budget of the Narendra Modi government. It was announced by Finance Minister Nirmala Sitharaman. The government has increased the income tax exemption limit from Rs 5 lakh to Rs 7 lakh under the New Tax Regime. That is, there will be no tax on the annual income of seven lakhs. But if your income exceeds even one rupee from this limit, then the whole game will get spoiled.
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Tax Exemption Increased from 5 Lakh to 7 Lakh
While presenting its last full budget before the upcoming 2024 Lok Sabha elections, the present government has given a big gift to the taxpayers. Presenting the fifth consecutive budget of her tenure as Finance Minister, Nirmala Sitharaman announced an increase in the tax exemption limit. Under this, the income tax exemption limit was increased from 5 lahks to 7 lahks. This benefit has been given in the new tax regime only. Standard Deduction has also been included in the new tax regime. But for this, the income should be at least Rs 15.50 lakh. In this, the surcharge has been reduced from 37 percent to 25 percent.
According to the Announcement the Government
According to the announcement of the government, if a person’s annual income is up to Rs 7 lakh, then no tax will have to be paid. At the same time, the tax will be deducted on the income more than this according to the new rates. As per the new system, a person with an annual income of Rs 15 lakh will have to pay a tax of Rs 1.5 lakh, which was earlier Rs 1.87 lakh.
Budget 2023-24 New Tax Slab
|0 to 3 lakh at 0 percent|
|5 percent on 3 to 6 lakhs|
|10 percent on 6 to 9 lakhs|
|15 percent on 9 to 12 lakhs|
|20 percent on 12 to 15 lakhs|
|30 percent on more than 15 lakhs|
This is how Tax will be deducted on Income above 7 Lakhs
In Budget 2023, the wait of about 8 years of taxpayers is over. It was already expected that the government could make a big announcement regarding tax in this budget. The Finance Minister said that in the new tax regime, no tax will have to be paid on income up to Rs 7 lakh. But if your annual income is more than one rupee or says Rs 7,00,001. Then you will have to pay tax as per the prescribed rates.
Understand the whole math of deduction like this
According to the new tax slabs introduced in Budget 2023-24, 0% on annual income of 0 to 3 lakhs, 5% on income of 3 to 6 lakhs, 10% on income of 6 to 9 lakhs, 9 to 12 lakhs But the tax will have to be paid at the rate of 15 per cent, 20 percent on income of Rs 12 to 15 lakh and 30 percent on income above Rs 15 lakh. According to this, the income of seven lacks one rupee will come under two tax slabs.