Union Budget 2023 Know Income Tax Charge Under New Tax Regime And Old Tax Regime

Income Tax In Union Budget 2023: Union Finance Minister Nirmala Sitharaman is going to present the upcoming budget 2023 on February 1. In this, the citizens of the country are announcing the income tax slab related budget. There has been no change in the income tax slab for individuals after the financial year 2017-18. The ‘New Tax Regime’ was implemented in February 2020.

Now experts want that some changes should be made in the budget 2023 regarding tax slabs. Under this change, tax exemption is expected for common citizens and employees. As per the current income tax provisions, an individual has to pay tax on the basis of slab rates. The highest slab rate for income above Rs 5 crore in the tax slab, after including surcharge and cess, is currently 42.744 per cent.

According to the news of CNBCTV18, Tapti Ghosh, Partner, Deloitte India has told that the high tax rate of 30 percent should be reduced to 25 percent and the limit of high tax rate should be increased from Rs 10 lakh to Rs 20 lakh. In this case, the proposed higher tax slab rate can be reduced to 35.62 percent, including surcharge and cess. Let us know what the experts have suggested in the new tax and old tax slabs.

how much earning How much have to pay tax

  • A total of 7 types of tax slabs have been created under the new tax system. Tax exemption has been given on annual income up to Rs 2.5 lakh.
  • 5% tax is applicable on income between Rs 2.5 lakh to Rs 5 lakh, while the proposed slab rate is also 5%.
  • From five lakh to 7.5 lakh, the slab rate is 10 percent and the proposed slab is also 10 percent.
  • From Rs 7.5 lakh to Rs 10 lakh, the slab rate is 15 percent and the proposed rate is also 15 percent.
  • The slab rate is 20 per cent on annual income between Rs 10 lakh to Rs 12.5 lakh and the proposed slab rate is also 20 per cent.
  • The tax slab on Rs 12.5 lakh to Rs 15 lakh is 25 per cent, which is demanded to be reduced to 20 per cent.
  • The slab rate on Rs 15 lakh to Rs 20 lakh is 30 per cent, which is demanded to be reduced to 20 per cent.
  • The slab rate on income above 20 lakh is 30 per cent, which is demanded to be increased to 25 per cent.

tax under the old tax regime

  • No tax is to be paid on annual income of Rs 2.5 lakh.
  • 5 percent slab rate is applicable for income between Rs 2.5 lakh to Rs 5 lakh.
  • There is a 20 percent slab rate on income between Rs 5 lakh and Rs 10 lakh.
  • 30 percent slab rate is applicable on annual income of 10 lakh to 20 lakh rupees and there is a demand to increase it to 20 percent.
  • There is a 30 per cent slab rate on income above Rs 20 lakh and there is a demand to increase it to 25 per cent.

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