Budget 2023 is a short presentation and an uncommon in many ways as it came during impending global recession, job losses, and many uncertain macro economic situations. Document covers Top 10 frequent questions and major changes from the perspective of a normal taxpayer.
Yes, Budget 2023 provides a middle class salaried friendly budget. However it is beneficial for those tax payers who wants to opt New tax Regime. There are no changes in Old Tax Regime.
There are no change in tax slab rates in Old Tax regime. Budget 2023 has proposed the changes New Tax Regime only w.e.f FY 2023-24 (AY 2024-25). The slab rates are as follows
|1||Upto Rs 3,00,000||Nil|
|2||From Rs 3,00,001 to Rs 6,00,000||5%|
|3||From Rs 6,00,001 to Rs 9,00,000||10%|
|4||From Rs 9,00,001 to Rs 12,00,000||15%|
|5||From Rs 12,00,001 to Rs 15,00,000||20%|
|6||More than Rs 15,00,000||30%|
|1||Upto Rs 2,50,000||0%|
|2||Rs 2,50,001 to Rs 5,00,000||5%|
|3||Rs 5,00,001 to Rs 10,00,000||20%|
|4||Above Rs 10,00,000||30%|
Rebate u/s 87A is increased only under New Tax Regime. Under New Tax Regime, taxpayer having income upto Rs 7 lakhs is not required to pay any taxes. Whereas under Old regime, taxpayer having income upto Rs 5 lakhs is not required to pay any taxes.
As per Budget 2023, the exemption limit under New Tax regime is increased to 3 lakhs . If you want to opt for New tax regime, you are not required to file taxes whereas if you want to opt for old regime, you are required to file taxes. However this is a grey area which needs to be clarified by CBDT
yes, Budget 2023 increases the threshold of 44ADA from Rs 50 lakhs to Rs 75 lakhs w.e.f Apr 1st 2023. However, 95% of the amounts should be received in Bank.
yes, Budget 2023 increases the threshold of 44AD from Rs 2 crores to Rs 3 crores w.e.f Apr 1st 2023. However, 95% of the amounts should be received in Bank
There is no change in standard deduction of Rs 50000 provided to employees under the Old Tax Regime. But Rs 50,000 standard deduction will be applied to salaried employees and pensioners under New tax Regime also from 01st April 2023.
The Period of incorporation of eligible start-up is extended by 1 more year i.e., 31st Mar 2024. The start-ups incorporated upto 31st Mar 2024 can avail the Tax benefits. Also the benefit of carry forward of losses on change of shareholding of start-ups is extended to 10 years from 7 years.
Yes, Budget 2023 has reduced the highest surcharge rate of 37% to 25% under New Tax Regime. This reduction does not apply to Old Tax Regime. The taxpayers with income of more than 5 crores will be paying 25% surcharge instead of 37% under New Tax regime
Budget 2023 does not provide any tax benefits to senior citizens. But there are some changes done to senior citizen saving scheme.
Covering Budget 2023 Highlights, Key Takeaways & Analysis, Calculators, Personal Income Tax, what was a hit or miss from the expectations point of view.
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