Budget 2023 Income Tax benefits: Know how much tax you need to pay if your annual salary is Rs 10 lakh

Finance Minister Nirmala Sitharaman presented the Union Budget 2023 for the financial year 2023-2024 in the Parliament today, with the Centre hailing it as one of the first pro-middle class and common man-friendly budgets released to date.

Along with the presentation of the Union Budget 2023, FM Nirmala Sitharaman announced several tax benefits for the salaried class people in India, providing relief to individual taxpayers with a specific salary amount across the country.

As per the Union Budget 2023, the income tax exemption limit has been increased by Rs 50,000 to Rs 3 lakh, and the rebate has been increased from Rs 5 lakh to Rs 7 lakh.  For all those opting for the new regime apart from the old regime, a standard deduction of Rs 50,000 has also been extended.

A new rule has been implemented for the middle class, in major tax relief, that those earning up to or less than Rs 7 lakh salary per year will not have to pay any tax. However, those earning up to Rs 10 lakh per year will be able to save around Rs 15,000 in taxes.

How much tax do you need to pay if you earn Rs 10 lakh?

According to the present income tax regime, people earning around Rs 10 lakh per year have to pay around Rs 78,000 per year in taxes, including Rs 75,000 total tax and around four percent of education tax.

After the announcement of the Union Budget 2023, individuals’ tax liability will be reduced by up to Rs 15,600 on an annual income of Rs 10 lakh. As opposed to the earlier income tax of Rs 75,000, now the total tax due for such people will be around Rs 60,000.

Meanwhile, the overall education tax will remain at 4 percent for the year, which comes out to around Rs 2,400. This means that the total tax due will be around Rs 62,400, as opposed to the current tax liability of Rs 78,000 in the existing regime.

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