Union Finance Minister Nirmala Sitharaman presented the Union Budget 2023 on Wednesday 1st February 2023. This was the fifth budget of BJP's 2nd tenure. To provide relief to taxpayers, Smt. Sitharaman announced major changes in tax slabs under the new tax regime and some other small changes in different provisions of Income Tax.
TDS will be applicable to online gaming from 0 income level. Minimum threshold of ₹ 10,000/- for TDS deduction has been removed.
Persons in the new tax regime, with income up to ₹ 7 lacks will not have to pay any tax. The rebate available u/s 87A is extended up to Income of ₹ 7 lacks under new tax regime
In new tax regime, number of slabs has been reduced to five and the tax exemption limit is increased to ₹ 3 lakh
New tax slabs under new tax regime:
|Income Range||Tax Rate||Tax Liability|
|₹ 0-3 lakh||Nil||0|
|₹ 3-6 lakh||5 Percent||5% of (Total Income - 300000)|
|₹ 6-9 lakh||10 Percent||15000+10% of (Total Income - 600000)|
|₹ 9-12 lakh||15 Percent||45000+15% of (Total Income - 900000)|
|₹ 12-15 lakh||20 Percent||90000+20% of (Total Income - 1200000)|
|Above ₹ 15 lakh||30 Percent||150000+30% of (Total Income - 1500000)|
Each salaried person with an income of ₹ 15.5 lacks or more will get the benefit of standard deduction of ₹ 52,500 in the new tax regime.
The highest surcharge rate applicable for income above ₹ 5 crores has been reduced from 37 percent to 25 percent in the new tax regime.
Tax exemption on leave encashment on retirement of non-government salaried employees has been increased to ₹ 30 lacs from existing ₹ 3 lacs.
The new income tax regime will be the default tax regime. It means you have to apply/choose separately to file a return under the old tax regime from AY 2024-25.
Conversion of physical gold into virtual gold and vice versa will not be treated as transfer for calculating capital gains.