Union Budget 2023: Biggest exemption in income tax, know the changes

New Delhi: Union Finance Minister Nirmala Sitharaman has made a big announcement in the budget for the middle class citizens. Now the government will not charge any tax on income up to Rs 7 lakh. Till now, income above Rs 5 lakh was taxed. Apart from this, the government has also changed the tax slab.

Understand the new tax slab in simple words

If your income is 7 lakh or less then you will not have to pay any tax on it. If your income is more than 7 lakhs then only you will come under the tax net. For example, suppose your income is Rs 9 lakh. In this case, you will have to pay a total tax of Rs 45,000. 3 lakhs of your income will be tax free. Income between Rs 3 to 6 lakh will be taxed at five per cent ie Rs 15,000. Income of 6 to 9 lakh rupees will be taxed at the rate of 10 percent i.e. 30 thousand rupees. In this way your total tax liability will be 45 thousand rupees.

Benefits of new tax slab

Union Finance Minister Nirmala Sitharaman herself has listed the benefits of the new tax slabs. He said that earlier those earning up to Rs 9 lakh had to pay Rs 60,000 as tax. Now these people will get the benefit of up to 25 percent. Such people will now have to pay only 45 thousand rupees tax. Similarly, earlier, income up to Rs 15 lakh was taxed at Rs 1 lakh 87 thousand 500. Now on getting 20% ​​profit, such people will have to pay only Rs 1 lakh 50 thousand as tax.

Disclaimer: This article is provided for informational purposes only. The information should not be taken to represent the views, policies or opinions of MoneyMattere.com, nor any of its employees, employees or affiliates.

For more Business updates, Click here.

Leave a Comment