The central government has made major changes in the new tax system and has given tax exemption to people earning up to 7 lakhs. People coming in the new tax system will benefit, you pay less tax in the new tax system but for that you have to give up the rest of the exemptions, in the old tax system you have to pay more tax, but you also get the rest of the exemptions. Less than 50 percent of the people pay income tax under the new tax system. If you are paying your income tax under the new tax system, then the standard deduction has been increased by the government from 50000 to 52500 per year. Most of the taxpayers still pay their tax under the old tax system, because there are many exemptions (home loan, house rent and others) which are not available in the new system. Will have to pay tax. This will happen when he pays his tax under the new system and gives all the information related to his savings to the government. If you earn up to Rs 9 lakh per year, then you may have to pay tax up to Rs 45 thousand annually. That means you are paying 5% income tax.
In the new tax regime, no tax will be levied on those earning up to Rs 7 lakh. Apart from this, the number of tax slabs has now been reduced from 7 to 5 only. The first slab will be from 3 to 6 lakhs, in which 5 percent tax will have to be paid. Apart from this, the second slab will be 6 to 9 percent, in which 10 percent tax will be levied. And the third slab will be 9 to 12 lakhs, on which 15 percent tax will be levied. 20 percent tax will be applicable on earning between 12 to 15 lakhs. At the same time, 30 percent tax will be applicable on earning more than this.
Highlights of the Union Budget 2023-24.
- EPFO’s strength doubles to 27 crore
- Agriculture Accelerator Fund to promote startups in the agriculture sector. to promote fisheries
special plan for - 38,800 teachers will be engaged in 3.5 lakh Eklavya tribal schools.
- Capital outlay of Rs. 2.40 lakh crore for Railways.
- 50 new airports and heliports will be built.
- Rs. 10,000 crore for Urban Infra Fund every year
- Rs. 75,000 crores for 100 transport infra projects
- 3 Centers of Excellence for “Artificial Intelligence” to be set up.
- KYC process will be simplified. PAN will be the common business identifier.
- The scope of Digi Locker will be expanded.
- Over 39,000 compliances reduced. Jan Vishwas Bill will amend 42 laws
- Rs. 35,000 crore for energy transmission
- 10,000 Bio Input Research Centers will be set up.
- 30 Skill India International Centers will be set up.
- NFIR (National Financial Information Registry) will be started for financial strategy.
- 1% reduction in cost of MSME loans. Infusion of Rs. 9,000 crore in the corpus for MSME credit.
- ‘Mahila Samman Savings Scheme’ for women Rs. 2,00,000 @ 7.5%
- SCSS increased from 15 lakh to 30 lakh.