The Indian Budget 2023 has been the talk of the town across industries since its declaration. Besides the various schemes, several income tax slabs and rebate limits have baffled employees. Every worker ponders one question today: "What does the new tax slab 2023 hold for me?" Are you, too, curious about the opportunities and challenges of the new tax slab? Stay tuned to learn more.
The 2023 budget changed the income tax slabs, introducing several rebates and relief. These changes, been proclaimed more beneficial to taxpayers, came into effect on April 1, 2023.
Further, the new tax slab is also said to be the default tax regime unless an individual opts for the old regime. Under this, Taxpayers earning less than INR 7 lakhs are exempt from paying tax. Moreover, the new tax regime comprises just five tax slabs, compared to 6 previously.
Some features of the new regime tax slab are:
While the new regime offers measurable benefits, taxpayers must note certain exemptions they must undergo. These deductions and exemptions are
Comprehending income tax slabs and deductions can be a great challenge for taxpayers. Moreover, employees across sectors have yet to fully understand the new tax slab 2023. This is due to a lack of proper awareness, leading to uncertainty about their best tax regime.
When analysing the effects of the new tax regime, it is necessary to consider both the advantages, such as the tax exemption of up to INR 7 Lakhs, and the limitations, such as the lack of certain exemptions. And often, employees find it challenging to computer their finances.
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You may benefit more in the new tax regime if your income is INR 7 Lakhs. Also, opting for the new regime would be advantageous if the sum of deductions is INR 1.5 lakhs or lower.
It is wiser to opt for the new tax regime if you have invested less than Rs 3,00,000 in tax-saving schemes; otherwise, the old regime would be more beneficial.