Budget 2023: A look at new and old income tax.

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When it comes to the budget for 2023, the only thing that the salaried class looks forward to is the income tax rebate.

FM Sitharaman did not announce any changes to income tax slabs for 2022-23, which was a major disappointment for the salaried class.

The income tax brackets have not changed since 2014. In 2014, the basic personal tax exemption limit  last revised. While presenting the 2020 budget, FM Sitharaman introduced a new tax regime.

The new tax regime, however, is still optional for taxpayers.

Budget 2023: Old income tax slab vs new income tax slab 

New tax slabs

1) Income up to ₹2.5 is exempt from taxation under both regimes.

2) Income between 2.5 to 5 lakhs is taxed at the rate of 5 percent under the old as well as the new tax regime.

3) Under the new regime, personal income ranging from 5 lakhs to 7.5 lakhs taxed at a rate of 10%.

4) Under the new law, income between 7.5 lakhs and 10 lakhs taxed at a rate of 15%.

Above 10 lakhs, there are three slabs

5) Under the new regime, personal income between 10 lakhs and 12.5 lakhs taxed at a rate of 20%.

6) Income between 12.5 lakhs and 15 lakhs taxed at 25%.

7) Income above ₹15 lakhs is taxed at a rate of 30 percent.

Old tax slabs

1) Income up to ₹2.5 is exempt from taxation under both regimes.

2) Income between ₹2.5 to ₹5 lakhs taxed at the rate of 5 percent under the old as well as the new tax regime.

3) Under the old regime, personal income ranging from 5 lakh to 7.5 lakhs taxed at a rate of 15%.

4) In the old regime, income between 7.5 lakhs and 10 lakhs taxed at a rate of 20%.

5) Under the previous regime, personal income in excess of Rs 10 lakhs taxed at a rate of 30%.

Finance Minister Nirmala Sitharaman will present the Union Budget 2023-23 on February 1, with the budget speech beginning at 11 a.m.

The salaried class expects Finance Minister Nirmala Sitharaman’s Union Budget 2023 to increase the standard deduction, increase the 80C exemption, and rejig tax slab rates.


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