- Date : 02/02/2023
- Read: 2 mins
Earning less than Rs. 5 lacs a year? You don't have to pay taxes!
You do not have to pay tax under either of the two regimes if you earn less than Rs. 5 lacs/annum in gross salary. It is because the new and old tax regimes offer rebates to persons with up to Rs. 5 lacs income. The 2023 budget will not affect this particular class of salaried taxpayers.
Read: Here are 3 apps to ease income tax return filing.
The many announcements made in this year's budget will not impact the take-home salary of salaried individuals. However, you must file tax returns in order to claim rebates if your income lies between Rs. 2.5-5 lacs. The 5% rebate was announced in 2019's interim budget under the old tax regime, just before the general elections.
It means there is a Rs. 12,500 tax relief for individuals in this bracket. The rebate has increased to Rs. 20,000 in Budget 2023 under the new regime, and the eligible income limit has increased also.
Read: How do you tax dividend income?
Conclusion
An increase in the basic exemption limit benefits everyone, while the rebate does not lessen the payable tax for other brackets. All tax brackets will receive Rs. 2,500 benefits under the new regime as the tax exemption limit has increased to Rs. 3 lacs.
New Tax Regime Explained
You do not have to pay tax under either of the two regimes if you earn less than Rs. 5 lacs/annum in gross salary. It is because the new and old tax regimes offer rebates to persons with up to Rs. 5 lacs income. The 2023 budget will not affect this particular class of salaried taxpayers.
Read: Here are 3 apps to ease income tax return filing.
The many announcements made in this year's budget will not impact the take-home salary of salaried individuals. However, you must file tax returns in order to claim rebates if your income lies between Rs. 2.5-5 lacs. The 5% rebate was announced in 2019's interim budget under the old tax regime, just before the general elections.
It means there is a Rs. 12,500 tax relief for individuals in this bracket. The rebate has increased to Rs. 20,000 in Budget 2023 under the new regime, and the eligible income limit has increased also.
Read: How do you tax dividend income?
Conclusion
An increase in the basic exemption limit benefits everyone, while the rebate does not lessen the payable tax for other brackets. All tax brackets will receive Rs. 2,500 benefits under the new regime as the tax exemption limit has increased to Rs. 3 lacs.
