In What Ways Is The New Tax Regime Different From The Old One? You Get These Benefits

Abhay Singh
3 Min Read
Income Tax

In Budget 2023, Finance Minister Nirmala Sitharaman made many big announcements regarding the new tax regime. The government had made new announcements to make this tax regime attractive.

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If you choose the new tax regime, you get many benefits. In this article, we only give you information about the benefits of the new tax regime compared to the old one.

Let us tell you that if the old tax regime is not selected, then the new tax regime is considered by default. That means the tax on your income is calculated based on the new tax regime.

With the new tax regime, taxpayers get relaxation in tax slabs. Along with this, taxpayers benefit from standard deductions and low surcharges.

Surcharge Now Up To 25 Percent

With the new tax regime, people with higher incomes get benefits. The surcharge has been reduced if the income exceeds Rs 2 crore. The surcharge has now been reduced to 25 per cent.

There Will Be No Tax On Income Up To Rs 7 Lakh

With the new tax regime, the tax deduction limit available under Section 87A of the Income Tax Act has been increased. With the new tax regime, there will be no tax on income up to Rs 7 lakh instead of Rs 5 lakh.

You Will Get The Benefit Of Standard Deduction

Earlier, the benefit of standard deduction was available only with the old tax regime. However, the benefit of the standard deduction is now available in the new tax regime. Apart from the discount of Rs 7 lakh, there will be an additional discount of Rs 50 thousand.

This Change Happened Regarding Tax Slab

With the new tax regime, there has also been a change in the tax slab. According to the new rules, now there will be no tax on income up to Rs 0-3 lakh. 5 per cent tax must be paid on income up to Rs 3-6 lakh.

10 per cent tax must be paid on income up to Rs 6-9 lakh. 15 per cent tax will have to be paid on income up to Rs 9-12 lakh.

20 per cent tax must be paid on income up to Rs 12-15 lakh. At the same time, a 30 per cent tax will be charged on income above Rs 15 lakh.

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By Abhay Singh Journalist
Abhay has been with News Waker for over a few months and has covered various topics, from politics to business to sports. He is known for his engaging writing style and ability to explain complex issues in a way that's easy to understand.