Budget 2023: Finance Minister has made taxpayers happy, know what he has given – budget 2023 changes in income tax slabs
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He has made many big announcements for taxpayers. Now in the new tax system, no tax will have to be paid on income up to Rs 7 lakh. He announced to reduce the number of slabs from six to five. Now only Rs 45 thousand will have to be paid on income up to Rs 9 lakh. Similarly, income tax of Rs 1.5 lakh will have to be paid up to Rs 15 lakh. He said that the tax rate will be 5 percent from three to six lakh rupees. From 6 to 9 lakh it will be taxed at 10 per cent, 15 per cent for income from 9 to 12 lakh, 20 per cent for income from 12 to 15 lakh and 30 per cent for income above 15 lakh. Those with an income of nine lakhs will have to pay Rs 45,000, which is five per cent. Now 60 thousand have to be given. Means 25 percent will decrease. 15 lakh income will have to pay only 10 percent. Earlier he had to pay Rs 187,000. That is, now they will have to pay 20 percent less tax. In the new tax regime, standard deduction up to Rs 52,500 has been given for Rs 15.5 lakh and above. The maximum surcharge rate has been increased from 37 percent to 25 percent.
The Finance Minister said that the new tax regime will now be the default tax regime but taxpayers can opt for the old tax regime. The Finance Minister said that the government has reduced the compliance burden on the taxpayers. Maximum 72 lakh IT returns have been filed in a single day. 6.5 crore IT returns have been filed this year. The average time taken to process IT returns has come down to 16 days from 93 days in 2013-14. 45% IT return forms have been processed within 24 hours. The government is working on a common IT form which will further reduce the compliance burden on taxpayers.
| income | tax slab |
| 3 to 6 lakh rupees | 5% |
| 6 to 9 lakh rupees | 10% |
| 9 to 12 lakh rupees | 15% |
| 12 to 15 lakh rupees | 20% |
| above 15 lakh | 30% |
Taxpayers had high hopes
This is the last full budget of the second term of the Modi government. Assembly elections are to be held in nine states this year and then general elections will be held in the country next year. According to the Economic Survey presented on Tuesday, between April and November, there has been an increase of 26 percent in direct tax as compared to last year. Also, the GST collection in January stood at Rs 1,55,922 crore, which is the second highest ever. This is the third time in this financial year when the GST collection has crossed Rs 1.50 lakh crore. That is, the treasury of the government is full and the government has enough scope to provide relief to the taxpayers. There has been no change on the tax front for nine years. This is the reason why taxpayers were expected to get relief this time.
Before this, the last change in the personal income tax slab was made in 2014. While presenting the first budget of the first term of the Modi government, the then Finance Minister Arun Jaitley had announced to increase it from Rs 2 lakh to Rs 2.5 lakh. At present there are two types of tax system. The government had announced the alternative tax regime two years ago. But it didn’t get much value. It was believed that the government could make changes in it to make it popular.
old tax system
In the old tax regime, no tax has to be paid on an annual income of Rs 2.5 lakh. Five percent slab rate is applicable for income between Rs 2.5 lakh to Rs 5 lakh. There is a slab rate of 20 per cent on income between Rs 5 lakh and Rs 10 lakh. 30% slab rate is applicable on annual income of Rs 10 lakh to Rs 20 lakh. Similarly, there is a 30 per cent slab rate on income above Rs 20 lakh. It was believed that the government may increase the tax exemption limit from Rs 2.5 lakh to Rs 5 lakh. This will give relief to taxpayers and they will have more money in their hands for investment.
new tax system
Taxpayers can save tax by using section 80C and 80D in the old tax system. But many such exemptions were abolished in the new system. This is the reason why the taxpayers did not give any value to it. There is no tax up to Rs 2.5 lakh in this. 5% from Rs 2.5 lakh to 5 lakh, 10% from Rs 5 to 7.5 lakh, 15% from Rs 7.5 lakh to 10 lakh, 20% from Rs 10 to 12.5 lakh, 25% from Rs 12.5 lakh to 15 lakh and 15 lakh Annual income above Rs.30% is taxed.
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