Old And New IT Regime In Budget 2023, Finance Minister Nirmala Sitharaman had offered a new tax regime. Since then the discussion had started that which of the two arrangements would be better.
If you are a salaried person, then your company or employer must have asked you to choose either the new or old tax regime . In such a situation, if you are also engaged in addition and subtraction like the rest of the people, which of the two systems can save you more tax, but instead of getting a solution, you have become confused, then there is no need to worry.
Today we are going to tell you about such things related to Tax Regime 2023, which will clear your confusion and you will be able to take the right decision.
What is the difference between Old and New Tax Regime
First of all, it is important to understand how the old tax system is different from the new one. The biggest difference in this is the tax slab.
New Tax Slab
- Annual income up to Rs 0-3 lakh – 0%
- Annual income up to Rs 3-6 lakh – 5%
- Annual income up to Rs 6-9 lakh – 10%
- Annual income up to Rs 9-12 lakh – 15%
- Annual income up to Rs 12-15 lakh – 20%
- Annual income above Rs 15 lakh – 30%
Old Tax Slab
- Annual income up to Rs 2.5 lakh – 0%
- Annual income up to Rs 2.5 -5 lakh – 5%
- Annual income up to Rs 5-10 lakh – 20%
- Annual income above Rs 10 lakh – 30%
- In this way, for taxpayers whose income is less than 15 lakhs, it is beneficial for them to move to the new tax regime.
Which will get more discount
If you are a taxpayer who has held many types of investments, then let us tell you that there is no exemption under Section 80C of the Income Tax Act in the new tax regime. Taxpayers can avail only standard deduction up to Rs.50,000.
On the other hand, taxpayers under the old tax regime can still avail exemption up to Rs 1.50 lakh under 80C. Thus, if you have invested more then stick to the old system.
