New Income Tax Slab 2023: Income tax exemption on earning of 7 lakhs, know the new slabs

New Income Tax Slab 2023: Income tax exemption on earning of 7 lakhs, know the new slabs

On February 1, the Central Government presented the last full budget of its tenure. Finance Minister Nirmala Sitharaman gave big relief to the employed and middle class and made income tax-free up to 7 lakhs. At present there are two income tax systems in the country. One is old and the other is New Tax Regime, which was brought last year. In the budget of 2023, the government has said that now the new tax regime will be considered as the default also the old system will continue.

How much money will have to be paid on the new tax slab of 2023?

The government had implemented a new tax regime in the last budget, under which six new tax slabs were created. The government has reduced it to 5 in this budget. In the new slab, no tax will have to be paid on income of Rs 3 lakh. 5% on income of 3-6 lakhs (maximum additional tax Rs 15000), 6-9 lakhs 10% (additional Rs 30000), 9-12 lakhs 15% (additional Rs 45000), 12-15 lakhs 20% ( 60000 extra) and above 15 lakhs 30 percent (90 thousand rupees) tax will have to be paid.

While under the new tax system, 5 percent i.e. Rs 2500 tax had to be paid on 2.5-3 lakh in the previous year. Maximum additional 22500 up to 6 lakhs, additional 37500 on 6-9 lakhs, additional 55000 on 9-12 lakhs, additional 87500 on 12-15 lakhs, additional 90000 tax on 15-18 lakhs will have to be paid. If someone's annual income is up to 18 lakhs, then he had to pay tax of Rs 295000.

55000 rupees benefit to taxpayers

In this way, after the new tax slab, those earning up to a maximum of 18 lakh per annum will get a total benefit of Rs 55,000 as compared to last year in the new tax system.

How much benefit to old taxpayers?

Those in the old tax system will not get any new benefit from the announcement of the Finance Minister. Only under Section 87(A) of Income Tax, the small taxpayers, whose income used to be 5 lakh earlier, and has increased to 7 lakh this year, do not need to pay any tax. For example, if someone is registered in the old tax system, till last year, he had to pay tax of Rs 32,500 on an income of Rs 7 lakh, which will now be zero.

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