TheSloth
The Slowest One
*economictimes.indiatimes.com/wealt...unced-in-budget-2023/articleshow/97508804.cms
Synopsis
Currently, there are two income tax slabs from which a salaried individual has to choose one every year. The income tax rates for these slabs are different. The old income tax regime continues with the existing tax exemptions and deductions. The new income tax regime offers lower income tax rates and more slabs with no option of availing tax exemptions and deductions. These tax slabs under the new tax regime has been revised from April 1, 2023. ..
According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs 5 lakh to Rs 7 lakh. Thus, individuals opting for the new income tax regime and having an income upto Rs 7 lakh will not pay any taxes.
What are the current income tax slabs?
The new tax regime was announced in Budget 2020 and became effective from financial year 2020-21 (April 1, 2020). Currently, a salaried individual gets the option to opt for the old tax regime and continue to avail common tax deductions and tax exemptions. Else, he/she can opt for the new concessional income tax regime, without any common tax deductions and tax exemptions. Under the new tax regime, the individual will forego 70 deduction and tax exemptions, which includes HRA tax exemption, LTA tax exemption, deduction up to Rs 1.5 lakh under Section 80C and so on.
*img.etimg.com/photo/msid-97520911/tax-slab.jpg
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