Union Finance Minister Nirmala Sitharaman presented the Union Budget 2023 and declared several shifts in the income tax slabs in the new tax rule. Understand New Income Tax Slabs 2023
Priorities of this Budget
- Inclusive development
- Reaching the last mile
- Infrastructure and Investment
- Unleashing the potential
- Green growth
- Youth power
- Financial sector
New Income Tax Slabs 2023-
- Up to 3 lakh – 0% tax
- 3 lakh to 6 lakh – 5% tax
- 6 lakh to 9 lakh -10% tax
- 9 lakh to 12 lakh -15% tax
- 12 lakh to 15 lakh -20% tax
- Above 15 lakh -30% tax
Taxpayers can file the return by opting for a new or old tax regime. It is challenging to choose one tax regime. Under the new tax regime, no tax is payable up to the income of 7 lacs and the basic exemption limit is increase to Rs.3 lakh.
The standard deduction for salary and pension-class taxpayers given more time. Salaried non-government employees who receive leave encashment may enjoy tax exemption up to 25 lacs instead of 3 lacs.
The presumption taxation turnover limit increased to 75 lahks for professionals.
Salaried taxpayers opting for a regular income tax regime will have to continue paying tax as per the tax slabs mentioned-
- Up to 2.5 lakh – 0% tax
- 2.5 lakh to 5lakh -5% tax
- 5 lakh to 10 lakh – 20 % tax
- Above 10 lakh -30% tax
The government has reduced the surcharge of the highest rate from 37 % to 25% in the new tax regime. New tax regime bringing down the overall tax for the middle-class taxpayer.
Standard deduction of 50000 to salaried individuals and pensioners:
TDS rates comes down from 30% to 20% on the taxable portion of EPF withdrawal in PAN cases. Tax exemption on maturity benefits will only be applicable if the aggregate premium paid by an individual is up to 5 lakhs. Finance Minister announced a 16% increase in National Calamity Contingent Duty (NCCD) on cigarettes. A substantial hike in tax on all tobacco items.
The presumption taxation scheme for specified professionals is applicable only when gross receipts are up to 50 lahks. This scheme extended to such professionals’ gross receipts up to 75 lakh, but only if cash receipts are up to 5% of total receipts.
Transforming gold to Electronic Gold Receipts and vice versa will not attract any capital gain. This will promote investments in the electronic form of gold.
Capital gain tax deduction on purchasing the new residential house is restricted. Long-term capital gain arising on an asset’s sale is exempt from tax if CG /sale consideration is reinvested in a new residential home.
Finance Minister proposed to limit deductions from capital gain on an investment in residential houses to Rs.10 crore. It is to prevent purchasing expensive residential homes through this section.
The TDS threshold limit of 10000 on online gaming is removed. Tax is required to pay even if earnings are less than 10000.
Now get all latest new updates on GST and IT returns 2023 by experts only on Indian daily post.
