The Union Budget 2023

The Union Budget 2023

The Union Budget 2023 was presented by Finance Minister Nirmala Sitharaman on February 1st, 2023.

In general, everyone looks forward to the budget before the general election and hopes for huge, audacious changes. But the surprise component tends to be underfunded in most budgets. The budget for this year was no unusual, as it primarily consisted of old plans that were given a new funding allocation. But there was a surprise in store for salaried taxpayers. They received the crucial tax benefit. The new tax system included a number of tax relief initiatives. It appears that the government wants taxpayers to transition to the new tax system and gradually phase out the previous system. We can only hope for adequate time to implement the new system and make

The Budget listed seven priorities: inclusive development, closing the opportunity gap, infrastructure and investment, releasing potential, green growth, young power, and the financial sector. Deciphering the Budget 2023

Highlights of the 2023 Budget: Direct Tax

Changes to the New Tax System
The default tax system is now the new one. To make the new tax system more appealing, the administration has implemented 5 crucial measures. The old tax system is still an option for taxpayers.

For FY 2023–24 (AY 2024–25), the new tax system slabs will change as follows:
Salary Slabs
Rate of Income Tax
Up to Nil (3,00,000)
₹3,00,000 – ₹6,00,000    5%

6,000,00-9,00,000  10%

9,00,000 to 12,00,000,   15%

12,00,000 to 15,00,000          20%

More than Rs.15,00,000 30%

The new tax system has introduced a tax rebate on incomes up to Rs. 7 lakhs. This implies that taxpayers making up to Rs. 7 lakhs will not be subject to any taxes at all!
Typical deduction
Under the new tax code, there is also a Rs.50,000 standard deduction for salary income. In actuality, your tax-free income under the new system is 7.5 lakhs.

household pension: The standard pension deduction is Rs.15,000 or one-third of the pension, whichever is less.
For those making more than Rs. 5 crore, the highest surcharge has been decreased from 37% to 25% under the new tax system. Their tax rate is reduced as a result from 42.74% to 39%.

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