Finance Minister has relieved individual taxpayers by giving a number of benefits to those who choose the new simpler tax system for the financial years 2023–2024.
Reetu | Feb 21, 2023 |
New Income Tax Slabs 2023: Is the simplified tax regime really appealing?; Know Here
New Income Tax Slabs 2023-24: The Finance Minister has relieved individual taxpayers by giving a number of benefits to those who choose the new simpler tax system for the financial years 2023–2024 as follows:
1. Increased exemption limit from Rs.250000 to 300000.
2. Increased rebate from Rs.12500 to Rs.25000 (where income does not exceed Rs.700000).
3. Reduction of the maximum marginal rate from 42.74% to 39.00%.
4. Relief in tax rates by increasing the tax slabs as under:
| Total Income | Rate of Tax |
| Up to Rs. 3,00,000 | Nil |
| From Rs. 3,00,001 to Rs. 6,00,000 | 5% |
| From Rs. 6,00,001 to Rs. 9,00,000 | 10% |
| From Rs. 9,00,001 to Rs. 12,00,000 | 15% |
| From Rs. 12,00,001 to Rs. 15,00,000 | 20% |
| Above Rs. 15,00,000 | 30% |
However, taxpayers who choose the new tax system must renounce a number of deductions and exemptions that were previously available. Some of the main exemptions and deductions under the previous tax system are as follows:
2. House rent allowance.
3. Standard deduction (where income does not exceed Rs.1550000).
4. Interest on loan for house property up to Rs.200000.
5. Deduction for contributions to equity-linked savings plans, provident funds, and life insurance premiums up to Rs.150000.
6. Contribution to NPS up to Rs.50000.
7. Deduction for monthly rent payments up to Rs.5000.
8. Mediclaim premium up to Rs.25000/ 75000.
9. Donation to charitable trusts.
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