The Indian Budget 2023, presented by Finance Minister Nirmala Sitharaman, has brought about a major change in the country’s tax regime. The new tax regime replaces the previous one and is set to come into effect from April 1, 2023. The new tax regime has been designed to provide relief to taxpayers and simplify the tax system.
Under the new tax regime, individuals earning up to 7 lakhs are not required to pay any tax. This is a major change from the previous regime and will provide much-needed relief to taxpayers. The new tax regime has the following tax slabs:
Income between 0 to 3 lakhs: NIL (no tax payable)
Income between 3 to 6 lakhs: 5% tax rate
Income between 6 to 9 lakhs: 10% tax rate
Income between 9 to 12 lakhs: 15% tax rate
Income above 12 lakhs: 30% tax rate
The new tax regime has removed various exemptions and deductions, making the tax system simpler and easier to understand. This will encourage more people to file their taxes and help increase the government’s tax revenue.
The new tax regime is expected to provide a major boost to the Indian economy, which has been hit hard by the COVID-19 pandemic. The new tax slabs will encourage people to spend more and increase their consumption, which in turn will stimulate economic growth.
In conclusion, the new tax regime presented in the Indian Budget 2023 is a welcome change for taxpayers. It will provide relief to those earning up to 7 lakhs, simplify the tax system and provide a major boost to the Indian economy. The government’s efforts to make the tax system more taxpayer-friendly and transparent are commendable and will be welcomed by the citizens of India.