Know how much tax benefit you will get if earning Rs 19 lakh to Rs 10 crore from proposed changes in New Tax Regime.
Income Tax Budget 2023 Latest News: Finance Minister Nirmala Sitharaman today announced several tax benefits for individual taxpayers in the New Tax Regime. While no changes have been made to the Old Tax Regime, the Government has tried to make the New Tax Regime attractive by increasing the tax rebate limit from Rs 5 lakh to Rs 7 lakh. Also, several measures have been announced that will benefit individuals earning more than Rs 7 lakh per year.
Read More:-5 income tax rule changes announced in Budget 2023
The Finance Minister proposed the following new tax rates under the New Tax Regime:
- 0-Rs 3 lakh: Nil;
- Rs 3-6 lakh: 5%
- Rs 6-9 lakh: 10%
- Rs 9-12 lakh: 15%
- Rs 12-15 lakh: 20%
- Above Rs 15 lakh: 30%
Experts say that the proposed change in the simplified tax regime or New Tax Regime will make it more attractive across low, medium and high-income levels. There will be no tax for individuals opting for the simplified tax regime up to 7 Lakh.
Read More:-Budget 2023: No income tax up to Rs 7 lakh; new Income Tax slabs rejigged – details
As per a calculation by taxation experts at Deloitte, reduced slab rates for individuals to 5 slabs from the existing 6 slabs will lead to a saving of Rs 37,500 for individuals earning Income up to Rs 15 lakh.
For individuals earning income above Rs 5 crore, the surcharge of 37% has been reduced to 25%, which will reduce the maximum marginal rate to 39% from 42.75%.
Also Read : Union Budget 2023: New vs Old Tax Regime – See What Has Changed
Tax Saving on Income of Rs 10 lakh, Rs 50 Lakh, Rs 1 crore and Rs 10 crore under New Regime
Finance Minister Nirmala Sitharaman said in her Budget Speech that the proposed structure under New Tax Regime will provide major relief to all taxpayers.
- Individuals earning up to Rs 9 lakh will have to pay Rs 45,000 as tax
- Individuals earning an income of Rs 15 lakh will have to pay only Rs 1.5 lakh or 10% of his or her income.
Also Read : Union Budget 2023-24 Highlights: Check Big Announcements Made by FM Nirmala Sitharaman
“This will provide major relief to all taxpayers in the new regime. An individual with an annual income of Rs 9 lakh will be required to pay only Rs 45,000/-. This is only 5 per cent of his or her income. It is a reduction of 25 per cent on what he or she is required to pay now, ie, Rs 60,000/-. Similarly, an individual with an income of Rs15 lakh would be required to pay only Rs 1.5 lakh or 10 per cent of his or her income, a reduction of 20 per cent from the existing liability of Rs 1,87,500,” the FM said.
