Are you also troubled by high-income taxes and are looking for new ways to save taxes, then the finance minister herself solved this problem, and she told us the best way to save taxes. let's know
There are 20 days left for the presentation of the budget for the financial year 2023-24. On February 1, 2023, the Finance Minister will present the budget in Parliament. At this time, everyone's eyes are on any news related to the budget or the demand made by different sectors to the Finance Minister. From job professionals to farmers, everyone's eyes are on the budget. Due to the last full budget of the government before the Lok Sabha elections, the general public has a lot of expectations from it.
Lower taxes for low-income earners
In this budget, along with increasing the income tax exemption limit, the standard deduction limit is also expected to be increased. At present, there are two regimes of income tax exemption. First new tax regime and second old tax regime. Finance Minister Nirmala Sitharaman recently said during a program that the optional income tax system with seven tax slabs was brought in so that low-income earners have to pay minimum tax.
No exemption in the new tax regime
Sitharaman told that in the old tax regime, you can claim income tax exemption in different ways. In this, taxpayers can claim the exemption in 7-10 ways. In this, tax has to be paid at the rate of 10, 20, and 30 percent. Along with the old tax regime, the government has brought a new tax regime, there is no exemption from tax in this. But the tax rate is less in this.
4 slabs in the old tax regime
The Finance Minister told that there are 7 tax slabs in the New Old Regime, while there are 4 slabs in the Old Tax Regime. The old tax regime is better for low-income group people. In this, you can save tax in 7 ways including house rent allowance, home loan interest, 80C, and medical insurance. The Finance Minister also said that he had to make seven slabs so that there would be lower rates for the low-income group people. Let us know the rates of the old tax regime-
Old tax regime
0 – Up to Rs 2,50,000 – Zero Tax
Rs 2.5 lakh to Rs 5 lakh – 5% tax
5 lakh to 10 lakh – 20 percent tax
Rs 10 lakh to Rs 15 lakh or above – 30 percent tax