According to CA Ajay Bagadia, now a person does not have to pay any tax on income up to 5 lakhs annually. Seven tax slabs were kept in this tax system introduced in the year 2020.

0 to 2.5 Lakh – No Tax
From 2.5 to 5 lakh – five percent
5 lakh to 7.5 lakh – 10 percent
7.5 lakh to 10 lakh – 15 percent
10 lakh to 12.5 lakh – 20 percent
12.5 lakh to 15 lakh – 25 percent
Above 15 lakh – 30 percent

According to Bagadia, now the new income tax system is by default and the old one is optional. Taxpayers can continue in the old tax regime with exemptions and deductions if they wish. You can claim many exemptions in the old tax regime. Like 1.50 lakh exemption under 80C, 25000 exemption under 80D.Tell that the old system is still going on, a person can choose the new or old tax system by looking at his profit and loss.

Tax on annual salary of Rs 7.5 lakh

CA Santosh Mishra says that if you earn seven lakh rupees annually then no tax will have to be paid and if you get more than seven lakh rupees or seven and a half lakh rupees annually in terms of salary, then you will have to pay tax according to the slab given in the new tax regime. Will have to go accordingly. As soon as your income crosses Rs 7 lakh, you come under the tax slab.

In this, you will not have to pay any tax on the first three lakhs.But, after this, on three lakh to six lakh (taxable income three lakh), Rs 15000 will have to be paid at the tax rate of five percent. Whereas, on six to nine lakhs (taxable income three lakhs), 30 thousand rupees will have to be paid at 10 percent tax rate.

this much will be beneficial

You will have to pay Rs 45,000 as income tax and Rs 800 as four percent. From this point of view, you will have to pay tax of Rs 45,800 on earning Rs 9 lakh. That is, in the new tax system, now on earning 9 lakhs, you will save 15 thousand rupees in income tax annually. Because, till now, according to the new tax system, income tax of Rs 60 thousand has to be paid on the income of Rs 9 lakh.

Tax on annual income of Rs 12 lakh

CA Abhinandan says that if someone earns Rs 12 lakh annually, then no tax will have to be paid on the initial Rs 3 lakh as before. After this, 15000 at the rate of 5% on the next three lakhs, 30000 at the rate of 10% on the next three lakhs and 45000 rupees at the rate of 15% on the remaining three lakhs. In this way, you will have to pay Rs 90,000 as income tax and Rs 3,600 as four percent on the tax. In total you have to pay Rs 93600.

Those earning Rs 15 lakh annually will pay this much tax

CA Ajay Bagadia told that those earning Rs 15 lakh annually come in the fifth i.e. Rs 12 to 15 lakh tax slab.20% tax has to be paid in this slab, but you will not have to pay this 20% tax on your entire income. You will have to pay 20% tax only on what you have earned above Rs 12 lakh i.e. above Rs 3 lakh and the initial tax slab will be applicable on the rest of the rupees. You will have to pay income tax of Rs 1 lakh 50 thousand.

The post New Income Tax Slab: Know how much income tax you will have to pay according to your salary first appeared on Rightsofemployees.com.

The Economic Survey has been presented at the beginning of the budget session. It has been indicated in this survey that there is a possibility of change in income tax slab in the budget. When the budget will be presented on the morning of February 1 i.e. Wednesday, the faces of taxpayers will blossom. There is every hope of getting relief in income tax in the budget.

Taxpayers and infra sector can get a gift

Finance Minister Nirmala Sitharaman presented the Economic Survey 2022-23 in Parliament. In the economic survey, the focus was on many sectors. Looking at this entire survey, it seems that in the government budget 2023, taxpayers can be given a big relief in income tax. Apart from this, many announcements can also be made to increase investment in the infra sector.

Tax slab may change

Experts also believe that there is a focus on increasing demand and consumption to give a boost to the economy. But, if work has to be done on both these fronts then exemption in income tax is very important. Demand in the economy can be increased by giving exemption to taxpayers. In such a situation, the government will make some big announcement regarding income tax. According to the experts, this announcement can be regarding the tax slab. Also, the exemption limit can be increased in section 80C as well.

You can get relief on income up to 10 lakhs

According to sources, if we talk about Old Tax regime in the current system, then there are only 3 slabs for taxpayers. Of these, those with an income of 2.5 lakh to 5 lakh are kept in the 5 per cent slab. At the same time, those with an income of 5-10 lakhs have to pay 20 per cent tax. Those earning above Rs 10 lakh are taxed at 30 per cent. According to sources, those earning up to 10 lakh can get a big discount in the upcoming budget. A new slab of 10 per cent can be added for this income group.

New income tax slab can be added

In the budget, at present there is 5 percent tax on those having 2.5 to 5 lakhs. It can be maintained. But, currently there is 20 percent tax on income from 5 lakh to 10 lakh, which can be reduced to 10 percent. Means those earning up to 10 lakhs will have to pay only 10% tax. A new slab may be proposed for this. Means instead of 3 slabs, now there will be 4 slabs in income tax. Income up to Rs 2.5 lakh will remain tax free. However, this basic exemption limit can also be increased. In this case the structure may be slightly different.

What will happen on earning 15 lakhs?

In the current system, income above Rs 10 lakh is taxed at 30 per cent. If sources are to be believed then this slab can also be broken. That means, those with income between Rs 10 to 15 lakh can be kept under 20 per cent tax and those with income above 15 lakh can be kept under 30 per cent tax. At the same time, there may be a proposal to bring income above Rs 2 crore in the 35 per cent tax slab.

The post Taxpayers got a hint ! There is going to be a big change in the Income Tax Slab! Know details first appeared on Rightsofemployees.com.