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Union Budget 2023: Things 2 Know for what has changed?

What have been updated in Union Budget 2023. You must know this new things which have been changed? In Bgs Raw News.

Today on 1st February 2023 a new year Union Budget was presented by the honorable Finance Minister of India Nirmala Sitharaman, which has grabbed the whole attention towards the news. And in this article, I will tell you all about the news and the old regime of the tax lab, and information about so many changes.

Union Budget 2023: Things 2 Know for what has changed?

Before detailing I must tell you one of the top news is that now it has been increased the rebate limit for individual taxpayers from ₹ 5 lahks to ₹ 7 lahks a year.

Ms. Sitharaman, while presenting Budget 2023 in parliament today, proposed to increase the rebate limit to ₹ 7 lakh in the new tax regime.

This means that individuals with an income of up to ₹ 7 lakh under the new tax regime will not be required to pay any income tax, compared to the current limit of ₹ 5 lakh in both old and new tax regimes.

See the New Tax Slab:

See the New Tax Slab 2023, Union Budget India: Bgs Raw News

"Ms Sitharaman announced a change to the personal income tax regime introduced in 2020, reducing the number of slabs from six to five and increasing the tax exemption limit to ₹ 3 lakh. The regime originally had six income slabs starting at ₹ 2.5 lakh."

In the 2020 Budget, the Finance Minister offered individual taxpayers a choice between the old tax rate, which allowed for exemptions, or the reduced new rate without the option for exemptions.

Under the previous tax regime, individuals earning ₹ 15 lakh per year were taxed at 30%, with the option to claim exemptions.

Individuals who chose the new regime introduced in 2020 and had an income above ₹ 15 lakh were taxed at 25% without the ability to claim exemptions.

Below is an example of how the new tax regime leads to more savings:

If your annual salary is ₹ 7 lakh, you are exempt from paying any tax. This is an increase from the previous rebate limit of ₹ 5 lakh.

If your salary is ₹ 9 lakh per year, it will be taxed based on the established slab system. This means that the amount will be divided into specific brackets for tax purposes."

A. 0-₹ 3 lakh: Tax exempt (previously 0-₹ 2.5 lakh was exempt)

Balance: ₹ 6 lakh will be taxed in two brackets, with the ₹ 3-6 lakh portion taxed at 5% and the ₹ 6-9 lakh portion taxed at 10%

B. 5% tax on ₹ 3 lakh: ₹ 15,000

Balance: ₹ 3 lakh will be taxed in one bracket, i.e. the ₹ 6-9 lakh portion at 10%

C. 10% tax on ₹ 3 lakh: ₹ 30,000

Total tax on ₹ 9 lakh (sum of A, B, and C): ₹ 45,000

However, if the ₹ 9 lakh was taxed using the previous slabs (0-₹ 2.5 lakh exempt and ₹ 5 lakh rebate), you would have to pay a minimum of ₹ 60,000, resulting in a 25% savings with the new slabs.

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