BEFORE BUDGET 2023
| Income Tax Slab | Old Regime | Old Regime | Old Regime | New Regime |
| Resident Individuals & HUF < 60 years old | Resident Individuals & HUF > 60 to < 80 years old | Resident Individuals & HUF > 80 years old | Applicable for All Individuals & HUF | |
| Rs 0 – Rs 2.5 lakh | NIL | NIL | NIL | NIL |
| Rs 2.5 – Rs 3 lakh | 5% (tax rebate u/s 87A is available) | NIL | NIL | 5% (tax rebate u/s 87A is available) |
| Rs 3- Rs 5 lakh | 5% (tax rebate u/s 87A is available) | 5% (tax rebate u/s 87A is available) | NIL | 5% (tax rebate u/s 87A is available) |
| Rs 5 – Rs 7.5 lakh | 20% | 20% | 20% | 10% |
| Rs 7.5 – Rs 10 lakh | 20% | 20% | 20% | 15% |
| Rs 10 – Rs 12.5 lakh | 30% | 30% | 30% | 20% |
| Rs 12.5 – Rs 15 lakh | 30% | 30% | 30% | 25% |
| Above 15 lakh | 30% | 30% | 30% | 30% |
Note:
– Individuals with Net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A i.e tax liability will be nil of such individual in both – New and old/existing tax regimes.
– Additional Health and Education cess at the rate of 4 % will be added to the income tax liability in all cases.
– Surcharge applicable as per tax rates below in all categories mentioned above:
· 10% of Income tax if total income > Rs.50 lakh
· 15% of Income tax if total income > Rs.1 crore
· 25% of Income tax if total income > Rs.2 crore
· 37% of Income tax if total income > Rs.5 crore
– In case one wishes to avail the benefits of reduced tax slab rates under the new tax regime in place of existing tax slabs, one has to forgo various tax deductions and exemptions available under old tax regime.
– A salaried taxpayer is not entitled to avail of major benefits like Standard Deduction, House Rent Allowance, Leave Travel Assistance etc. in case they opt for the new tax regime.
AFTER BUDGET 2023
The new Income tax regime is a default tax regime but that does not mean you can’t opt for the old tax regime, so basically, the old tax regime is there already but there is a new tax regime under which new slab rates have been introduced.
The budget has proposed to increase the income tax rebate to income tax 7 lakh from 5 lakh for those opting for the new tax regime. Here is the comparison for the new tax regime before this budget and after this budget.
| SLAB | EARLIER before budget 2023 | SLAB | NOW after budget 2023 |
| 0-5 lakh | NIL | 0-3 lakh | NIL |
| 5-7.5 lakh | 10% | 3-6 lakh | 5% |
| 7.5-10 lakh | 15% | 6-9 lakh | 10% |
| 10-12.5 lakh | 20% | 9-12 lakh | 15% |
| 12.5-15 lakh | 30% | 12-15 lakh | 20% |
| Above 15 lakh | 30% | Above 15 lakh | 30% |
IMPORTANT POINTS ON BUDGET 2023 NEW REGIME
- Standard deduction of 45,000 has now been extended to the new tax regime for the salaried class and pensioners as the earlier standard deduction was not allowed for those opting for the new tax regime, now this has changed and salaried and pensioners can avail of 45000 deduction
- The government has reduced the surcharge of the highest rate from 37% currently to 25% in the new tax regime.
Contact Us: info@taxvic.com
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