What’s New in Income Tax
Budget 2023 Updates
- A tax rebate has been introduced in the New Tax Regime on income upto Rs 7 Lakhs. This implies that you do not have to pay tax if your taxable income is below 7 lakhs under new tax regime.
- The new tax slabs under the new tax regime will be:
Income Slabs | Tax Rates |
up to Rs 3 lakh | Nil |
Rs 3 lakh- Rs 6 lakh | 5% |
Rs 6 lakh-Rs 9 lakh | 10% |
Rs 9 lakh-Rs 12 lakh | 15% |
Rs 12 lakh- Rs 15 lakh | 20% |
Above Rs 15 lakh | 30% |
- The standard deduction of Rs 50,000 has been introduced under the new tax regime for salaried taxpayers.
- The highest surcharge under the new tax regime has been reduced to 25% from 37% for people earning more than Rs 5 crore. This move brings down their tax rate from 42.74% to 39%.
- The new IT regime will be the default tax regime. However, taxpayers can choose the old regime.
- Leave encashment for non-government employees has been increased to Rs 25 lakh from Rs 3 lakh.
- TDS rate reduced to 20% from 30% on withdrawal of EPF.
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- 02 May 2022 – CBDT notifies form for filing the ‘Updated’ income tax returns
- 27 April 2022 – Form 26A, Form 27BA, Form 10BD & Form 10BE are available on the income tax portal.
- 20 April 2022 – Income Tax Portal announced that UDIN update functionality is enabled for Forms filed from June 2021 onwards.
Budget 2022 Updates
- New provision is introduced to allow taxpayers to update the past return and include omitted income by additional tax payment.
- Income from transfer of digital assets such as crypto to be taxed at 30%.
- The surcharge on the long-term capital gains (LTCG) has been capped at 15%
Click here for the latest Press release on income tax due dates