The only thing that the salaried class looks forward to when it comes to the budget is the income tax rebate. FM Sitharaman did not announce any changes to income tax brackets for 2022-23, which was a major disappointment for the salaried class. The income tax brackets have not changed since 2014. In 2014, the basic personal tax exemption level was last updated. While presenting the 2020 budget, FM Sitharaman presented a new tax structure. The new tax scheme, however, is still optional for taxpayers.
Old income tax slab vs new income tax slab
New Income Tax Slab
) Both regimes exempt income up to 2.5 from taxation.
2) Income between 2.5 and 5 lakh rupees is taxed at 5% under both the old and new tax regimes.
3) Under the new regime, personal income ranging from 5 lakh to 7.5 lakh is taxed at a rate of 10%.
4) Under the new law, income between 7.5 lakh and 10 lakh is taxed at a rate of 15%.
5) Under the new regime, personal income between 10 lakh and 12.5 lakh is taxed at a rate of 20%.
6) Income between 12.5 lakh and 15 lakh is taxed at 25%.
7) Income beyond Rs 15 lakh is taxed at a rate of 30%.
Old Income Tax Slab
1) Both regimes exempt income up to $2.5 from taxation.
2) Income between 2.5 and 5 lakh rupees is taxed at 5% under both the old and new tax regimes.
3) Under the prior regime, personal income ranging from 5 lakh to 7.5 lakh was taxed at a rate of 15%.
4) In the prior regime, income between 7.5 lakh and 10 lakh was taxed at a rate of 20%.
5) Under the previous regime, personal income in excess of Rs 10 lakh was taxed at a rate of 30%.
Finance Minister Nirmala Sitharaman will introduce the Union Budget 2023-23 on February 1, with the budget speech beginning at 11 a.m.
The salaried class expects Finance Minister Nirmala Sitharaman’s Union Budget 2023 to enhance the standard deduction, increase the 80C exemption, and rejig tax slab rates.
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