Income Tax Rules: Finance Minister Nirmala Sitharaman has increased the tax exemption limit to 7 lakhs in the new tax regime, giving great relief to taxpayers in the budget this year.
Income Tax Rules: Taxpayers were waiting for a long time in the country that the government would give them tax rebate. In such a situation, in the Budget 2023, Finance Minister Nirmala Sitharaman, fulfilling this demand of taxpayers, has excluded people with income less than 7 lakhs from the purview of Income Tax Slab. Announcing in the Parliament, the Finance Minister said that if a person adopts the new tax regime, then in such a situation, up to Rs 7 lakh, not even a single rupee tax will have to be paid. The Finance Minister had introduced the new tax regime in the budget of the year 2020. Let us first know what is the difference between the two tax regimes-
What is the difference between new and old tax regime?
Let us tell you that in the new tax regime, you will not have to pay any kind of tax on income up to Rs 7 lakh. In this case, the government gives tax rebate up to Rs 25,000. According to the new Income Tax Regime, now you will not have to pay any tax on income up to Rs 3 lakh. 5% in the 3 to 6 lakh slab, 10% in the 6 to 9 lakh slab, 15% in the 9 to 12 lakh slab, 20% in the 12 to 15 lakh slab and above Rs 15 lakh 30% income tax will have to be paid on higher income.
According to the old tax regime, no tax has to be paid on an income of Rs 5 lakh as tax exemption is available up to Rs 12,500. According to the old tax regime, now no tax will have to be paid on income of Rs 3 lakh. On the other hand, 5 percent in the slab of 3 to 6 lakhs, 10 percent in the slab of 6 to 9 lakh rupees, 15 percent in the slab of 9 to 12 lakh rupees, 20 percent in the slab of 12 to 15 lakh rupees and 15 lakh rupees. 30% income tax will have to be paid on income above Rs.
Taxpayers can switch in both regimes
In such a situation, after coming to the new and old tax regime, the biggest question is whether users can switch between the two? The answer is yes, certain taxpayers can switch the new and old tax regime every year. Such a salaried person, a person earning from rent can change the tax slab every time. On the other hand, the income generated under business means that once the businessman switches the tax regime, he cannot return to the old regime again.
