Union Finance Minister Nirmala Sitharaman will present the annual Budget 2023 on 1 st February, 2023. People all around the country are waiting for the Budget announcements which includes the important issues related to income tax slabs as the personal income tax slabs and rates have not changed and updated since 2017-18.
The only change that was announced in Annual Budget of 2020 was the ‘Simplified Tax Regime’ that introduced a substitute of lessen tax rates at the cost of preceding a few reductions and exemptions.
After the new tax structure, citizens will get the option of paying tax under the new slab with reduced rates but preceding reductions or continue paying tax under the Active tax laws and laying claim to the opposite and relevant exemptions.
The Different Categories of Tax Payers
As per the current laws, a slab system works all around India, where different tax rates have been advised for different slabs. In the country we see three categories of tax payers:
1. Citizens (below 60 years) that adds residents and non- residents.
2. Senior citizens (60 years) and more but below 80 years
3. Resident super senior citizens (above 80 years).
Also Read :-PM Modi Will Virtually Address the 108th Indian Science Congress (ISC) Today, Theme and Facts
Check New Tax Regime
At present, a total 7 income slabs are applicable under the new tax regime. Let’s look one by one how much tax has to be paid by these Citizens.
1. Individuals who earns Rs 2.5 lakh is exempted from paying tax.
2. Individuals earning between Rs 2.5 lakh and Rs 5 lakh have to pay 5% tax.
3. Individual’s income lies between Rs 5 and Rs 7.5 lakh have to pay 10% tax.
4. Whereas, individuals earning between Rs 7.5 and Rs 10 lakh have to pay 15% tax.
5. Those who are earning between Rs 10 and Rs 12.5 lakh have to pay 20% tax.
6. Those who earns between Rs 12.5 and Rs 15 lakh have to pay 25% tax.
7. Individuals who earns above Rs 15 lakh is taxed at 30%.
Last Changes were made in 2014 Budget
The last changes were made in the year 2014, the central government had increased the tax limit. Previously the limit was Rs 2 lakh, which was raised to Rs 2.5 lakh. After this announcement citizens received more amount to invest.
