Income Tax Calculator: After the start of the new financial year from 1st April 2023, the new income tax regime has become the default tax regime for taxpayers. However, an earning individual will have the option to opt for the old income tax regime. standard deduction from today 50,000 per annum has also been increased in the new income tax regime. However, the most important change taking place from today is the new income tax slabs for the financial year 2023-24, which has become effective with the beginning of the new financial year.
In this new income tax slab, no income tax is payable on annual income up to, irrespective of the new or old tax regime. as 3 lakhs 50,000 per annum standard deduction It has also been extended for the new income tax regime. on annual income of from 3,00,001 6 lakhs, 5 percent income tax will be payable in the current financial year. on the income of from 6,00,001 9 lakhs in FY24, an income tax payer will have to pay 10 per cent income tax. on annual income of from 9,00,001 12 lakhs in the financial year 2023-24, 15 percent income tax will be levied. on the income of from 12,00,001 15 lakh in a financial year, the taxpayer will be taxed at 20 per cent income tax. above income 15 lakh per annum, the taxpayer will be taxed at 30 per cent income tax under the new income tax slab effective from 1 April 2023.
However, the new income tax slab will be applicable only for those taxpayers who opt for the new income tax regime while filing their Income Tax Return (ITR).
zero income tax on 7 lakh or less income
income tax exemption Section 87A of the Income Tax Act has also been extended to the new income tax regime in FY24. Hence, this benefit is now available to all taxpayers who do not opt for the old tax regime during this period ITR filing,
Talking about the benefits of this income tax exemption, Pankaj Mathpal, MD & CEO, Optima Money Managers said, “Under section 87A of the Income Tax Act, the maximum exemption 25,000 per annum in a financial year has now been extended from FY24 to the new income tax regime. it means a person earnings 7 lakh or less in FY 24 will not be required to pay any income tax as he can claim 15,000 on income tax exemption from 3,00,001 6 lakh income tax slab and 10,000 off from 6,00,001 7 lakh income tax slab.”
Debt mutual fund investors asked to keep an eye on their income tax slab after gains in debt mutual fund investmentSEBI registered tax and investment expert Jitendra Solanki said, “With effect from April 1, 2023, income from debt mutual fund investments will be treated as short-term capital gains taxable at income tax slab rates.”
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