Budget 2023: Different slabs of income tax have been fixed in the country. In these, different tax rates are fixed on income in New Tax Regime, whereas in Old Tax Regime, different tax rates are fixed on income.
Talking about the New Tax Regime, the tax rate in this is the same for people of all ages. Income Tax in India is collected through the Income Tax Department. Those whose income is more than a certain limit, they have to pay income tax every year. Two tax regimes have been fixed by the government in the country.
They also have different advantages. At the same time, the Union Budget (Budget 2023) is also to be presented by the Central Government in the coming few weeks. This time in the budget, people have expectations of a big announcement on income tax as well. However, even before the budget, it is very important for some people to know one important thing.
Tax Slab Different slabs of income tax have been fixed in the country. In these, different tax rates are fixed on income in New Tax Regime, whereas in Old Tax Regime, different tax rates are fixed on income. Talking about the New Tax Regime, the tax rate in this is the same for people of all ages. Although there is a slight change in the tax rates according to the age in the Old Tax Regime.
New Tax Regime
In New Tax Regime, Hindu Undivided Family, persons up to 60 years of age, senior citizens between 60 years to 80 years of age and very senior citizens above 80 years of age will have to pay tax at the same rate. Any increase in the basic exemption limit in the new tax regime will not benefit senior and very senior citizens. On the other hand, in the New Tax Regime, tax is waived up to Rs 2.5 lakh annually.
Old Tax Regime
However, tax exemption can be availed according to age in Old Tax Regime. For the financial year 2020-21, if a person below 60 years of age pays tax according to the Old Tax Regime, then his annual tax up to Rs 2.5 lakh is waived. After this, 5% tax is levied on 2.5 to 5 lakh rupees annually.
Their tax up to three lakh rupees is waived , while according to the Old Tax Regime for the financial year 2020-21, senior citizens, whose age is more than 60 years but less than 80 years, they will have to pay three lakh rupees annually in income tax.
Discount up to. This means that if a person, whose age is between 60 years to 80 years and he files income tax according to Old Tax Regime, then he will not have to pay any tax on income up to Rs 3 lakh annually. Their tax is waived on income up to three lakh rupees annually. At the same time, after this, they will have to pay 5% tax on income ranging from Rs 3 lakh to Rs 5 lakh annually.
Their tax up to five lakh rupees is waived , while super senior citizens whose age is more than 80 years, if they file tax according to Old Tax Regime, then they do not have to file tax on income up to five lakh rupees annually. Will happen. However, they will have to pay tax at the rate of 20 per cent on income between Rs 5 lakh and Rs 10 lakh.
