Today, the budget for the financial year 2023-24 was presented and soon after #NewTaxRegime started trending on Twitter as FM Nirmala Sithraman made 5 major announcements on the Income Tax as she tables India’s Budget for 2023-24, the first of the ‘Amrit Kaal Budget.’
However, these are not applicable in the ‘old regime’. The Major announcements by madame FM for the ‘New Tax Regime’ are.
- No tax levied upto Rs 7 lakh a year in the new tax regime
- Increase in tax rebate from Rs 5 lakh a year to 7 lakh in the new tax regime
- Four new tax slabs in the new tax regime
- Under the new tax regime benefits of Rs 50,000 Standard Deduction for salaried class and pensioners
- New tax regime to become the default tax regime
Here’s the revised tax slabs for FY 2023-24 in the new budget. In the new tax regime, here’s how much tax is levied –
- Rs 0-3 lakhs – 0%
- Rs 3-6 lakhs – 5%
- Rs 6-9 lakhs – 10%
- Rs 9-12 lakhs – 15%
- Rs 12-15 lakhs – 20%
- Above Rs 15 lakhs – 30%
But how beneficial is the new tax regime? According to the new slab, an individual will only pay Rs 45,000 in income taxes for an annual income of Rs 9 LPA with a mere 5% of deduction. Earlier the individual had to pay a tax of Rs 60,000 on the same income. This is a significant 25% reduction in the new tax regime.
Here’s how Netizens reacted to the Budget –
This is how change in tax slabs under new tax regime will benefit the taxpayers. #AmritKaalBudget https://t.co/zEHOKLI2h2 pic.twitter.com/YWrQIKhiKM
— NSitharamanOffice (@nsitharamanoffc) February 1, 2023
Income tax rebate increased to 7 lakhs but me toh unemployed hoon #Budget2023pic.twitter.com/wiyUyWat3O
— Tweeting Quarantino (@rohitadhikari92) February 1, 2023
Me feeling happy with Rs 575- in my account, after Income tax- rebate extended on income from Rs 5 Lakhs to Rs 7 Lakhs.#Budget2023 pic.twitter.com/HSfudD9f7p
— Krishna (@Atheist_Krishna) February 1, 2023
No tax till ₹ 7 Lacs 🔥🤞
Me as Middle Class right now🔥 #incometax #Budget2023 pic.twitter.com/jscLiyjZeC— Ashutosh Srivastava 🇮🇳 (@sri_ashutosh08) February 1, 2023
#Middleclass looking for #IncomeTax benefits in this #Budget.#UnionBudget2023 #BudgetSession pic.twitter.com/AbtS7pditj
— Navdeep Yadav (@navdeepyadav321) February 1, 2023
1. No income tax upto Rs 7 Lakhs
2. In new regime #Budget2023 pic.twitter.com/ebi3yWhw5e— Sagar (@sagarcasm) February 1, 2023
When you realise tax slabs have only been reduced in New Tax Regime.#Budget2023 pic.twitter.com/xn7sJbqCPr
— Nimo Tai 🇮🇳 (@Cryptic_Miind) February 1, 2023
