Union Minister Nirmala Sitharaman on Wednesday presented Union Budget 2023 for the Financial year 2023-2024 and sweetened the new income tax regime by making income up to Rs 3 lakh exempt from income tax. She also simplified the tax structure and called it the default income tax regime.
By Crox Media Desk: Finance Minister Nirmala Sitharaman in her union budget five major announcements to sweeten the tax regime. This is good news for the salaried class. Under the new regime, income up to 3 lahks is made tax-free. Earlier the total income of up to 2.5 lahks was exempt from the new income tax regime. She also said that the new tax regime would be a “default regime”.
Those who have an income of 7 lahks and above will get now a rebate. This was earlier 5 lakhs.
A 5 percent tax was earlier taken on the income of 2.5 lahks and Rs 5 lakh and 10 percent was applicable on between Rs 5 Lakh and 7.5 Lakh. A tax rate of 20 percent was taken on the income of Rs 10 Lakh and 12.5 Lakhs. A Tax Rate of 25 percent was applicable for income between 12.5 and Rs 15 Lakh and 30 percent on earnings of above 15 lahks.
This new tax regime was announced in the 2020-2021 Budget.
Stay tuned for more updates.