Budget 2023: Here’s how to understand your new tax slab
- Number of tax slabs reduced from 6 to 5
- No tax on income up to 7 lakhs
- 10% tax on income up to 9 lakhs
Finance Minister Nirmala Sitharaman today presented the general budget for the financial year 2023-24. He made many big announcements for tax payers. Now under the new car regime no tax has to be paid on income up to 7 lakh rupees. He has reduced the number of tax slabs from 6 to 5. Now only 45 thousand rupees tax has to be paid on income up to 9 lakhs. In this way, income tax of 1.5 lakh rupees will have to be paid on income of 15 lakh rupees.
Finance Minister Nirmal Sitharaman said that the tax rate will be 5% on income between 3 to 6 lakhs. 10% tax on income between Rs 6 to 9 lakh, 15% on income between Rs 9 to 12 lakh, 20% on income between Rs 12 to 15 lakh and 30% on income above Rs 15 lakh. Taxpayers with income up to 9 lakhs will have to pay a tax of 45 thousand rupees at the rate of 5%. According to the current tax system, 60 thousand had to be paid. That means the tax has been reduced by 25%. Taxpayers with an income of 15 lakhs will have to pay 10 percent. Earlier he had to pay a tax of Rs 1,87,000. Now he has to pay only 20% tax.
The Finance Minister said that the new tax regime is now the default tax regime, tax payers can opt for the old tax regime. The Finance Minister said that the government has reduced the compliance burden on tax payers. A maximum of 72 lakh IT returns have been filed in a single day. 6.5 crore IT returns have been filed this year. The average time to process IT returns was 93 days in 2013-14 which has come down to 16 days. 45 percent of IT return forms are processed within 24 hours. The government is working on creating a common IT form that will further reduce the burden of compliance on tax payers.
|3 to 6 lakh rupees||5%|
|6 to 9 lakh rupees||10%|
|9 to 12 lakh rupees||15%|
|12 to 15 lakh rupees||20%|
|15 lakhs above||30%|
The hopes of the tax payers have come true
This is the last full budget of the second term of the Modi government. Assembly elections are going to be held in 9 states this year followed by general elections to the Lok Sabha again next year. According to the Economic Survey released on Tuesday, direct taxes have increased by 26% between April and November compared to last year. Also, the GST collection in January stood at Rs 1,55,922 crore, the second highest ever. This is the third time in this financial year that the GST collection exceeded Rs 1.50 lakh crore. That means the government coffers are full and the government has enough potential to provide relief to the tax payers. No change has been made in the tax structure for 9 years. This is the reason why tax payers have got a lot of relief this time.