How to switch tax slab: Taxpayers were given some additional exemptions in the new tax system. The people of the country can choose the new and the old system as per their wish, but the rules have been made separately for both.
How to switch tax slab: Finance Minister Nirmala Sitharaman has presented the budget for 2023-24 in the Parliament. This time the taxpayers have been given a big relief in the budget. The Finance Minister said in the Parliament that now those earning less than 7 lakhs will not have to pay any income tax. However, this benefit will be available only to those opting for the new tax regime. At the same time, income tax will not be levied on all people with income up to Rs 3 lakh. The Finance Minister introduced a new income tax slab in the budget. But those earning more than Rs 60 lakh may find the new tax regime beneficial, while people in the lower income group who claim multiple deductions still prefer the old tax regime.
Let us inform that in the year 2020, the Finance Minister had given the option of New Tax Regime for taxpayers. Taxpayers were given some additional exemptions in the new tax system. The new tax system is applicable from 1 April 2020. The people of the country can choose the new and the old system as per their wish, but the rules have been made separately for both.
Know what are the rules
Taxpayers can move from old tax slab to new slab and they can come back from new slab to old slab. However, this exemption is only for certain categories of taxpayers. Employed people can go back to the new slab. Salaried individuals can switch tax slabs every financial year. Those who have income from salary, rent or other sources can change the tax slab every time. If you have income from business then you can shift only once. Businessmen once switched can’t come back.
Tax will not have to be paid up to 7 lakhs
Along with this, the rebate limit has been increased from Rs 5 lakh to Rs 7 lakh in the new and old tax slabs in the budget. This means that now no tax will be levied till the earning of Rs 7 lakh. Apart from the rebate, the direct tax exemption has also been increased by Rs 50,000. That is, earlier where there was a direct tax exemption of up to 2.5 lakhs, it has now been reduced to Rs 3 lakhs.
This change happened in the slab
The government has also changed the tax slab under the new regime. Now the 25% slab has been abolished. Earlier, those earning Rs 12,50,001 to Rs 15 lakh had to pay 25 percent tax, but now the income of Rs 12,00,001 to Rs 15 lakh has been kept in the 20 percent slab. Apart from this, now those earning more than Rs 15 lakh have been placed directly in the 30 percent slab.
