Finance Minister Nirmala Sitharaman has given a big relief to the salaried middle class on the tax slab. The Finance Minister has increased the tax exemption limit from Rs 5 lakh to Rs 7 lakh. That is, now you will not have to pay any tax on income up to 7 lakhs.
If your earnings are 0-3 lakh, then there will be no tax on it. A 5% tax will be levied on the income of 3-6 lakhs, 10% tax will have to be paid on the income of 6-9 lakhs. 15% tax will be charged on income of 9-12 lakhs and 20% tax will have to be paid on income of 12-15 lakhs. At the same time, 30 percent tax will be levied on earning more than Rs 15 lakh.
Now listening to these tax slabs, there is confusion that if there is no tax up to 7 lakhs, then why 5% tax will have to be paid on the income of 3-6 lakhs. Actually, no tax will have to be paid on income up to 3 lakhs, but after that you can save the tax which is being levied by making various investments. But this limit is only up to 7 lakhs.
Budget 2023: Tax Slab
Let me tell you, the last time the tax rate was changed in the budget of 2017-18. There was no change in the tax slab for 9 years. However, in the year 2020 a new tax system was implemented.