Budget 2023-24 Highlights: No Tax On Income Up To Rs 7 Lakh

Finance Minister Nirmala Sitharaman said that the Union Budget for 2023-24 will focus on growing the economy of the country and making more jobs for the youth.

Sitharaman said in the Budget for 2023-24 that people with a total income of up to Rs 5 lakh do not pay any tax because of rebates under both the old and new systems.

Sitharaman said, "I want to change the way taxes are set up in this regime by reducing the number of tax brackets to five and raising the amount of money that doesn't have to be paid in taxes to Rs 3 lakh."

"I think that the benefit of the standard deduction should be added to the new tax system. So, everyone with a salary of Rs 15.5 lakh or more will be better off by Rs 52,500 "Sitharaman said

Under the new tax rules, you don't have to pay tax on income up to Rs 7 lakh.

The tax rate would be 5% on income between Rs 3–6 lakh and 10% on income between Rs 6–9 lakh if income is more than 7 lakhs,

15% on income between Rs 9–12 lakh, 20% on income between Rs 12–15 lakh, and 30% on income of Rs 15 lakh or more.

Before a total income between Rs 2.5 lakh and Rs 5 lakh was taxed at 5%, between Rs 5 lakh and Rs 7.5 lakh at 10%, between Rs 7.5 lakh and Rs 10 lakh at 15%, between Rs 10 lakh and Rs 12.5 lakh at 20%, between Rs 12.5 lakh and Rs 15 lakh at 25%, and above Rs 15 lakh at 30%.

In the Budget 2023, people whose income is up to Rs 7.5 lakh will not have to pay any tax. This includes pensioners and family pensioners.

But under the new tax system, people with incomes up to Rs 7.5 lakh will not have to pay any income tax because they will be able to get rebates and deductions.

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