Key Features of Budget 2023-24 from Direct Tax Point of View
| Present | Proposal in Budget 2023-24 |
|---|---|
| As per Sec. 115BAC -Tax Regime Rate of Tax : Upto Rs. 2,50,000——————–Nil From Rs. 2,50,001 to Rs. 5,00,000—————- 5% From Rs. 5,00,001 to Rs. 7,50,000—————-10% From Rs. 7,50,001 to Rs. 10,00,000—————15% From Rs. 10,00,001 to Rs. 12,50,000————-20% From Rs. 12,50,001 to Rs. 15,00,000————-25% Above Rs. 15,00,000——————————30% | Rate of Tax:- Upto Rs. 3,00,000———————————-Nil From Rs. 3,00,001 to Rs. 6,00,000—————–5% From Rs. 6,00,001 to Rs. 9,00,000—————-10% From Rs. 9,00,000 to Rs. 12,00,000————–15% From Rs. 12,00,000 to Rs.15,00,000————–20% Above Rs. 15,00,000——————————30% |
| As per Sec. 87A Rebate of income-tax in case of certain individuals– Resident individual having total income upto Rs. 5 lakh shall be entitled to get a deduction from the amount of income tax of Rs. 12,500 or amount of income tax whichever is lower. | Total Income for rebate of income tax increased from 5 lakh to Rs. 7 lakh (assessees opting for the new tax regime). |
| Highest surcharge rate on income above Rs. 5 crore to be reduced from 37% to 25% under new tax regime. | |
| As per Sec. 10(10AA), in case of non-government employee received leave encashment at the time of retirement is exempt from tax (max. 3 lakh). | Increasing tax exemption limit to Rs. 25 Lakh on leave encashment. ( This is as per budget not finance bill) |
| If opt new tax regime (sec. 115BAC) , no deduction of sec 16 | Extending standard deduction to new tax regime |
| The tax regime of Section 115BAC is proposed to be applicable to Association of Persons (AOP)[(other than a co-operative society], Body of Individuals (BOI), and Artificial Juridical Persons (AJP). | |
| Section 80CCH is proposed, deduction shall be equal to the amount of contributions made to the Agniveer Corpus Fund for Agniveers. |
Advice-this is subject to change until finance Act 2023