New Delhi: The Union Government has changed the tax slab and announced rebates on income tax up to ₹7 lakhs.
Finance Minister Nirmala Sitharaman presented Union Budget 2023-24 in parliament today.
The Finance Minister in her Budget gave a rebate of income earned up to ₹7 lahks, up from ₹5 lakh earlier under the new tax regime. The basic exemption limit in the regime has been raised to ₹3 lahks, up from ₹2.5 lakh earlier.
Also, the number of slabs under the new Income Tax regime has now come down to 5 from 6. For taxable income up to ₹3 lahks, there is no liability. For incomes between ₹3-6 lakh, it is 5 per cent. For taxable income between ₹ 6-9 lakh, it is 10 per cent.
For taxable income between 9-12 lakh, it will be 15 per cent. For taxable income between 12-15 lakh, 20 per cent. and for those with income above Rs 15 lakh, 30 per cent.
Finance Minister reduced the surcharge rate from 37 per cent to 25 per cent in the new Tax regime or income above ₹2 crore.
The Current tax rate in the country is 42.74 per cent, among the highest in the world and now it has been reduced to 39 per cent.
The limit of tax exemption on leave encashment on the retirement of non-government salaried employees has been increased from ₹3 lahks to ₹25 lakh.
The new income tax regime has been made the default tax regime. However, the citizens will continue to have the option to avail the benefit of the old tax regime.
Common IT Return Form
The Union Budget proposes to roll out a next-generation common IT return form for taxpayer convenience. It also stipulates a plan to strengthen the grievance redressal mechanism for direct taxes.
The Finance Minister also announced the deployment of about 100 Joint Commissioners for disposals of small appeals in direct tax matters. She also said that the department will be more selective in taking up cases for scrutiny of returns already received this year.