New Income Tax Slabs: Those with an annual salary of Rs 9 lakh will pay Rs 45000 as taxes.
Income Tax 2023: Union Minister Nirmala Sitharaman earlier this week provided a much-needed relief to the middle class. In her Budget 2023 speech, she said those with salaries up to Rs 7 lakh will pay no tax. But what about those who have just Rs 1 more than the tax-free limit? In 2020, she introduced a new tax regime under which those who don't seek relaxations through savings schemes can opt for marginally lower rates. After a lukewarm response to the new scheme, she brought another scheme. Those who forgo the old tax regime will have to pay absolutely no income tax whatsoever if their salaries are below Rs 7 lakh. The number of taxpayers under this category is miniscule compared to the entire tax net; however, these people need tax relief the most due to lower income levels. Those who want to avail the benefits of deductions will have to use the old income tax regime.
Under the new income tax slabs, no tax will have to be paid for salaries between 0 and Rs 3 lakh. 5 percent on those between Rs 3 and 6 lakhs, 10 percent between Rs 6 lakh and Rs 9 lakh, 15 percent between Rs 12 lakh and Rs 15 lakh and 30 percent above Rs 15 lakh. After standard deductions, those with salaries up to Rs 7 lakh won't have to pay any taxes.
Those with an annual salary of Rs 9 lakh will pay Rs 45000 as taxes. Those with a salary of Rs 15 lakh will pay Rs 1.87 lakh as the tax.
Those whose salary is even Re 1 more than the limit will have to pay a lot of tax. Such people will have to cough up Rs 25000 annually. The new rebate is called 87A benefit. Those with salary Rs 7,00,001 will be out of the Section 87A benefit.
Under the new regime, if you salary is Rs 7 lakh and 1, you will get a rebate of 3 lakh. After this, you will have to pay 5 percent tax on the remaining Rs 4 lakh. So 5 percent tax on Rs 3 lakh is equal to Rs 15000. 10 percent tax on the remaining Rs 1 lakh at 10 percent is equal to Rs 10000. So the total tax will be Rs 25000.
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 "Income Tax slabs update: Those whose salary is even Re 1 more than the limit will have to pay a lot of tax.")
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