Old vs new current income tax slabs: When it comes to Budget, the only thing that the salaried class look forward to is the income tax rebate. In a big disappointment for the salaried class, FM Sitharaman did not announce any change in income tax slabs for 2022-23. The income tax slabs have not been changed since 2014. The basic personal tax exemption limit was last revised in 2014. FM Sitharaman introduced a new tax regime while presenting budget 2020. However, the new tax regime remains optional for taxpayers.
Budget 2023: Old income tax slab vs new income tax slab
New tax slabs
1) Income up to ₹2.5 is exempt from taxation under both regimes.
2) Income between ₹2.5 to ₹5 lakh is taxed at the rate of 5 per cent under the old as well as the new tax regime.
3) Personal income from ₹5 lakh to ₹7.5 lakh is taxed at a rate of 10 per cent under the new regime
4) Income between ₹7.5 lakh to ₹10 lakh is taxed at a rate of 15 per cent under the new
Also Read : Sovereign green bonds: Know the risks and rewards
There are three slabs above ₹10 lakh
5) Personal income between ₹10 lakh and ₹12.5 lakh is taxed at a rate of 20 per cent under the new regime.
6) Income from ₹12.5 lakh to ₹15 lakh is taxed at 25 per cent
7) Income above ₹15 lakh is taxed at a rate of 30 per cent.
Old tax slabs
1) Income up to ₹2.5 is exempt from taxation under both regimes.
2) Income between ₹2.5 to ₹5 lakh is taxed at the rate of 5 per cent under the old as well as the new tax regime.
3) Personal income from ₹5 lakh to ₹7.5 lakh is taxed at a rate of 15 per cent under the old regime
4) Income between ₹7.5 lakh to ₹10 lakh is taxed at a rate of 20 per cent in the old regime
5) Under the old regime personal income above ₹10 lakh is taxed at a rate of 30 per cent.
On 1 February, Union Budget 2023-23 will be presented by Finance Minister Nirmala Sitharaman and the budget speech is scheduled to start at 11 am.
Standard deduction hike, increase in 80C exemption, rejigging tax slab rates are some of the expectations of the salaried class from Finance Minister Nirmala Sitharaman’s Union Budget 2023.