![]() Currently, individuals with income up to Rs 5 lakh were not required to pay any tax since the tax on such income is provided as rebate under 87A. Over and above that, the rebate under 87A has been increased to Rs 7 lakh. So compared to the past, across all levels, the tax liability will come down just because of the way the tax structure has been changed. And again, the basic exemption limit has been increased to Rs 3 lakh and then with every increase of three lakhs, the tax rates go up from 5, 10, 15, 20, and 30%. The number of slabs have come down to five. First of all, the tax structure has been looked at again. ![]() We have heard that the new tax regime has been made much more attractive in this Finance Act. Let us discuss the tax slabs under the tax regime and the kind of benefits which were introduced in the Budget this time.Ī good place to start is to understand what were the changes. Let’s talk about the new tax regime breakup, since that is a default tax regime if you do not mention that you want to stick to the old one. We will have to wait and see for FY23 how many would opt for it and the results really would be known when they start filing the tax returns for FY23 which are due July 31st because that is when the individuals will have to make that choice for filing the tax return. Tapati Ghose, Partner, Deloitte India, says till last year, just about 5% to 10% of employees across companies had opted for the new tax regime which is why the government had to make the changes to make it more attractive.
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