New Income Tax slab regime | Fusion - WeRIndia

Union Finance Minister Nirmala Sitharaman announced the new tax regime in the Union Budget 2023. As per the new tax regime, the income tax rebate limit has been increased from ₹5 lakhs to ₹7 lakhs. That means those earning up to ₹7 lakhs and opting for the new tax regime need not pay income tax.

The new income tax slabs also have been announced. There will be no income tax if the income is below ₹3 lakhs. Currently, the tax limit is ₹2.5 lakhs.

Income tax rates will be as follows: If the total income is between ₹3 lakhs and ₹6 lakhs, a five per cent tax, and if the income is between ₹6 lakhs and ₹9 lakhs, a 10 per cent tax will be levied.

15 per cent tax to the income between ₹9 lakhs and ₹12 lakhs, and 20 per cent tax will apply to the income between ₹12 lakhs and ₹15 lakhs.

If the income is above ₹15 lakhs, a 30 per cent tax will be levied.

The other key aspects related to income tax in the Union Budget 2023 are as follows:

• Now, the new income tax regime will be the default regime. However, taxpayers can opt for the old regime.
• Salaried employees and pensioners can get a standard deduction of up to ₹52,500 if their income is ₹15.5 lakhs or more.
• Individuals who earn ₹15 lakhs need to pay ₹1.5 lakhs.
• The government proposed to reduce the highest surcharge rate from 37 per cent to 25 per cent in the new tax regime.

The Finance Minister also announced Mahila Samman Saving Certificate for women. It is a one-time small savings scheme. The term is two years with a fixed interest rate of 7.5 per cent.

The maximum investment limit will be ₹2 lakhs. Investors can also withdraw a partial amount.

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Source: https://pixabay.com/photos/income-tax-calculation-calculate-491626/

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