In a bid to empower the “hardworking middle class” of India, the Union Budget 2023-24 has brought along a slew of changes to the tax regime.
From this fiscal year, salaried individuals earning up to Rs 7 Lakh per annum will be eligible for tax rebate under section 87A, which basically means that if you earn equal to or less than Rs 7 Lakh per annum, you don’t have to pay tax on your income.
Highest surcharge rate levied on Personal Income Tax also reduced
Under the old regime, the Income Tax rebate covered those who earn up to Rs 5 Lakh per annum. Those earning more than the said upper limit had to pay taxes on their income according to the tax rate slab they came under. The budget has also proposed a reduction in thee highest surcharge rate charged on personal income tax, bringing it down from 37% to 25%.
Furthermore, the new tax regime has also brought relief for those earning six figures. Individuals making Rs 15 Lakh per annum, who were charged a 30% tax on their income, will be charged only 20% from this fiscal year. The Union Budget 2023-24, aimed at further simplifying the tax regime and reducing compliance, has thus far proven to be a massive relief for India’s taxpayers.
