A simple explainer to the new scheme of tax slabs presented by the Indian government

1. BUDGET 2023-24
WHAT IT BROUGHT IN TERMS OF TAX SAVINGS?

2. TAX SLAB CHANGES: WHAT IT CONTAINS AND WHAT NOT?
Following are the changes done in tax slabs:
S.No. Earlier Tax Slab New Tax Slab Tax Rate
1 Upto 2.5 lakhs Upto 3 lakhs 0%
2 2.5 lakhs to 5 lakhs 3 lakhs to 6 lakhs 5%
3 5 lakhs to 7.5 lakhs 6 to 9 lakhs 10%
4 7.5 lakhs to 10 lakhs 9 to 12 lakhs 15%
5 10 lakhs to 12.5 lakhs 12 lakhs to 15 lakhs 20%
6 12.5 lakhs to 15 lakhs - 25%
7 Above 15 lakhs Above 15 lakhs 30%
In addition, tax rebates can be claimed on income up to 7 lakhs, which was 5 lakhs earlier.

3. BUT WAIT!!
Not so easy…..

4. NEW TAX REGIME VS OLD TAX REGIME
• In Budget 2020, a new tax regime was
brought.
• Due to obvious reasons, most opted for
the old regime.
• So, this new tax slab CAN increase
participation in the new regime.
• If someone opts for the new tax regime,
they are not eligible for any kind of tax
rebate including 80 C and 80 D

5. LESSER TAXES FOR THE RICH??
• If chosen the new regime, rich surcharges will be
reduced to 25% from 37%
• On the other hand, the rebates can be secured up to
10 crores of the income for buying a property
(compared to no limit). Although it will start from
2024
• Additionally, more tax on foreign investment.
• Currently, 5% at source, but from now onwards, 20%.