DIRECT TAX PROPOSALS – BUDGET 2023
1. New Cooperatives – 15% Tax Rate.
2. Higher limit of cash deposit & TDS (3 lakhs) limit for Primary Cooperatives etc.
3. Start Ups benefits extended by 1 year to 1.4.2023.
4. No Capital Gain on gold conversion to bonds.
5. TDS on EPF Reduced.
6. Relief 87A increased to Rs. 700,000/- ; Meaning no tax till 7L income only under New tax regime.
7. Tax slabs under the new regime changed. Reduced to 5 Slabs from 6 Slabs.
New Income Tax Slabs
- Rs 0-3 lakhs: NIL
- Rs 3-6 lakhs: 5%
- Rs 6-9 lakhs: 10%
- Rs 9-12 lakhs: 15%
- Rs 12-15 lakhs: 20%
- Above Rs 15 lakhs: 30%
8. Standard deduction introduced for Salary – Rs. 52,500 under the new regime.
9. Surcharge reduced from 37% to 25% under the New tax regime.
10. New tax regime to become the default tax regime, however, there is still an option for the taxpayers to select the old/new regime.