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Budget 2022: Tax Rates And Tax Slabs Unchanged
In the backdrop of financial stress caused by the Covid outbreak, there were expectations that the higher tax slab limit should be raised. Nevertheless, on anticipated lines nothing has been done on the personal income tax front. So, the fy 2022-23, there is no income tax exemption limit as expected and the higher tax slab continues to be for those with earnings over Rs. 10 lakh.
There is a view that amid financial stress any change in income tax rates shall be counter productive.
"If the existing rates are changed, while some sections of taxpayers may benefit, others may see a rise in their income tax liabilities, since the government will also have to ensure that there is minimal revenue foregone".
The Economic Survey tabled on Monday pinned hopes for bigger tax reliefs for all types of taxpayers, including salaried individuals, senior citizens, NRIs and pensioners.Taxation rates are not benchmarked against inflation and despite their steady form over the years, taxpayers income has decreased, while eventually reducing their disposal income. The concessional tax regime took off from Fy 2020-21 to widen tax base was introduced. And in the financial year 2017-18, the tax rates were lowered. There were expectations that the concessional tax regime shall be rationalised in this year's budget.
Tax rate and tax slab for AY 2023-24:
| Existing Tax Regime | New Tax Regime u/s 115BAC | ||
|---|---|---|---|
| Income Tax Slab | Income Tax Rate | Income Tax Slab | Income Tax Rate |
| Up to ₹ 2,50,000 | Nil | Up to ₹ 2,50,000 | Nil |
| ₹ 2,50,001 - ₹ 5,00,000 | 5% above ₹ 2,50,000 | ₹ 2,50,001 - ₹ 5,00,000 | 5% above ₹ 2,50,000 |
| ₹ 5,00,001 - ₹ 10,00,000 | ₹ 12,500 + 20% above ₹ 5,00,000 | ₹ 5,00,001 - ₹ 7,50,000 | ₹ 12,500 + 10% above ₹ 5,00,000 |
| Above ₹ 10,00,000 | ₹ 1,12,500 + 30% above ₹ 10,00,000 | ₹ 7,50,001 - ₹ 10,00,000 | ₹ 37,500 + 15% above ₹ 7,50,000 |
| ₹ 10,00,001 - ₹ 12,50,000 | ₹ 75,000 + 20% above ₹ 10,00,000 | ||
| ₹ 12,50,001 - ₹ 15,00,000 | ₹ 1,25,000 + 25% above ₹ 12,50,000 | ||
| Above ₹ 15,00,000 | ₹ 1,87,500 + 30% above ₹ 15,00,000 |
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