Outlook Money
All taxpayers have been impacted by significant changes to the income tax system for FY 2023–24 which aims to streamline filing procedures and modify tax obligations in light of new slabs and deductions
The new tax regime is the default now, thus simplifying tax calculations for employers who must use this unless taxpayers actively opt for the old regime.
There is a rebate of Rs 25,000 for incomes up to Rs 7 lakh, thus making incomes up to this threshold tax-free, thereby easing the tax burden for middle-income earners, while promoting compliance.
In order to provide equitable taxation across income groups and improve revenue production, the new regime contains six tax slabs, ranging from 0-30 per cent, for incomes below Rs 3 lakh to above Rs 15 lakh.
A standard deduction of Rs 50,000 is now available under the new tax regime, aimed at reducing taxable income directly, and simplifying tax planning for taxpayers.
The peak surcharge rate has been reduced from 37 per cent to 25 per cent, thus lowering the overall tax rate for high-income individuals to 39 per cent, thereby fostering investment and maintaining progressive taxation principles.
Compiled By Manas Malhotra