The new tax regime is the default system to calculate revenue tax from April 1, 2023.
The exemption restrict has been raised from Rs 2.5 lakh to Rs 3 lakh beneath the brand new regime.
The Union Budget 2023-24 introduced important adjustments to the private revenue tax. These adjustments have come into impact from April 1, when the brand new monetary yr begins. The authorities has revised the revenue tax slabs and made the brand new revenue tax regime the default system for all taxpayers.
Below we now have listed all of the adjustments you should concentrate on.
What Are The New Changes In Income Tax Slabs?
The variety of revenue tax slabs within the new revenue tax regime has been lowered from 5 to 6. The exemption restrict has additionally been raised from Rs 2.5 lakh to Rs 3 lakh beneath the brand new regime. This signifies that taxpayers with an annual revenue of as much as Rs 3 lakh don’t must pay any revenue tax from April 1. The tax charges are 0% for revenue as much as Rs 3 lakh, 5% for revenue between Rs 3 and Rs 6 lakh, 10% for revenue between Rs 6 and Rs 9 lakh and so forth.
Under the previous tax regime, the no-tax slab was from Rs 0 to Rs 2.5 lakh. Various deductions might be claimed within the previous tax regime beneath Section 80C, 80D, and 80CCD amongst different sections of the Income Tax Act to convey down the taxable revenue. No deductions, nevertheless, can be found within the new tax regime.
New And Old Tax Regime
The rebate restrict has been elevated from Rs 5 lakh to Rs 7 lakh beneath the brand new tax regime from April 1. The rebate is obtainable beneath Section 87A of the Income Tax Act. Now those that select the brand new tax regime is not going to be liable to pay any tax for annual revenue of as much as Rs 7 lakh.
Also Read: Income Tax Return Filing Online: Easy Steps To File ITR 1 Sahaj, Check Details Here
Under the brand new tax regime, the full payable tax will become Rs 54,600 for an individual with annual revenue of Rs 10 lakh. For an annual revenue of Rs 15 lakh, the tax legal responsibility will probably be 1,45,600.
The new tax regime is the default system to calculate revenue tax from April 1. But taxpayers will nonetheless be allowed to decide on the previous tax regime.
The highest surcharge will probably be introduced right down to 25% from 37% within the new tax regime. Hence, April 1 onwards the utmost tax price is 39%. Till March 31, 2023, the utmost tax price was 42.74%.
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