Goemkarponn desk
NEW DELHI: The central government today made the much-awaited mega announcement on increasing the income level up to which no income tax is payable: ₹ 7 lakh a year from the 2023-24 financial year. It was Rs 5 lakh so far.
Only those earning above ₹ 7 lakh annually will have to pay as per a new five-slab structure. Those making even a rupee above it will have to pay tax — though they will get exemptions already available, such as life insurance premium and long-term mutual funds.
There will be five slabs now, with taxable income calculated after all exemptions:
Taxable income of ₹ 0-3 lakh (after all exemptions) will be nil;
Rs 3 lakh to 6 lakh will be taxed at 5 per cent;
If income is above ₹ 6 lakh, up to ₹ 9 lakh, it will be taxed at 10 per cent;
Above ₹ 12 lakh and up to 15 lakh to be taxed at 20 per cent; and
Income above ₹ 15 lakh to be taxed at 30 per cent
Before listing out the new slabs, the minister announced that the Old Tax Regime will only be available on request now, and what was known as the New Tax Regime so far will thus be considered the default regime.
She got to the tax bit near the very end of her 87-minute speech: “Now, I come to what everyone is waiting for — personal income tax. I have five major announcements to make in this regard. These primarily benefit our hard-working middle class.”
