Last Update: February 04, 2023, 21:00 IST
The Finance Minister in his budget speech on February 1 had proposed to raise the income tax exemption limit to Rs 7 lakh from the existing Rs 5 lakh.
People with an annual income of Rs 15 lakh will have to pay 10% of their income ie Rs 1.5 lakh under the new system.
Finance Minister Nirmala Sitharaman During his budget speech on February 1, announced tax cuts and changes in income tax slabs under the new regime. This has brought relief to the common man and will increase disposable income in the hands of tax payers. But, as per the revised income tax slabs, how much tax will you pay under the new regime? If you are worried about this, then News18 has calculated how much tax you will have to pay under the new tax regime. Read further to know more.
The Finance Minister in his budget speech on February 1 had proposed to raise the income tax exemption limit to Rs 7 lakh from the existing Rs 5 lakh. So, if your annual income is up to Rs 7 lakh and you opt for the new tax regime, you will not have to pay any tax. Tax slabs have also been amended giving relief to the taxpayers.
Under the new dispensation, the exemption limit has been raised to Rs 3 lakh from the existing Rs 2.5 lakh. Here are the revised tax slabs under the new regime proposed in the Union Budget 2023:
Up to Rs.3 lakh – 0%
Between Rs 3 to 6 lakh – 5%
Between Rs 6 to 9 lakh – 10%
Between Rs 9 lakh to Rs 12 lakh – 15%
Between Rs 12 lakh to Rs 15 lakh – 20%
Above Rs 15 lakh – 30%
In his budget speech, the finance minister also proposed to reduce the highest surcharge rate under the new tax regime from 37% to 25%. The proposal under the Union Budget will reduce the maximum tax rate to 39% from the current 42.74%.
Income tax on annual income up to Rs 7 lakh, Rs 10 lakh and Rs 15 lakh
Under the new tax regime, those earning up to Rs 3 lakh annually will not have to pay any tax. Under the new tax regime, as per the changes proposed in Budget 2023, the total income tax amount will come down significantly. If your annual income is up to Rs 7 lakh, then under the current new regime, you will have to pay Rs 33,800 as income tax. However, as per the proposed changes under budget 2023 Your tax liability will be nil.
The total tax liability for those with an annual income of Rs 10 lakh is currently Rs 78,000. But, as per the revised tax slab and the increased exemption limit under the new regime, the total tax payable will be Rs 54,600. Similarly, the total tax payable for a person with an annual income of Rs 15 lakh is currently Rs 1,95,000 under the new regime. The total income tax payable as per the revised tax slab will be reduced to Rs 1,45,600.
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