Income Tax Slab 2023 New Announcements 2023: Finance Minister has made big announcements regarding income tax. There have been 5 big announcements in personal income tax. In the new tax regime, there is no tax on income up to 5 lakhs, but now this rebate will be available on income up to 7 lakhs.
Income Tax Slab: To know the income tax slab and how much tax will be levied on your income, you have to find out what is your taxable income, that is, how much tax you will have to pay on your income.
Income Tax Slab: To calculate how much income tax you have to pay in a financial year , it should be known in which income tax slab you come. It will also depend on which income tax regime you choose for that financial year. For this, you have to compare both old and new income tax. To know the income tax slab and how much tax will be levied on your income, you have to find out what is your taxable income, that is, how much tax you will have to pay on your income.
Tax Deduction and Exemption: Where will you get the exemption?
If you choose the old tax regime, then you will be free to claim tax exemption or tax deduction. Under this, you get tax exemption on things like House Rent Allowance exemption, Leave Travel Allowance exemption, standard deduction. Also, in this regime, you can get tax exemption under sections 80C to 80U of the Income Tax Act. After removing tax exemption and tax deduction from your total income, the amount that remains will be your taxable income, that is, you will have to pay income tax on it.
Income Tax Calculator: If there is an annual salary of 12 lakhs, then how much tax will have to be paid?
For example, suppose that your annual income is Rs 12 lakh. You can claim a deduction of Rs 2.10 lakh under section 80C, 80TTA, 80CCD(1b). The taxable income on which you have to calculate tax will be Rs 9.9 lakh (Rs 12 lakh – Rs 2.10 lakh). In the old tax regime, your income tax slab will be between Rs 5 lakh to Rs 10 lakh, and the tax rate for this is 20%.
New Tax Regime: Exemption will not be available in the new regime
However, if you opt for the tax regime, you cannot claim the exemptions and deductions mentioned above. In the above example, the taxable income would be Rs.12 lakhs on which tax would be calculated. Under the new tax regime, if an individual’s income falls in the slab of Rs 9,00,001 and Rs 12,00,000, then the tax rate here is 15%.
