We have been receiving questions about the Union Budget 2023. Hence, we have collated all the information for you in the form of FAQs
What are some of the major updates in the new tax regime post Budget 2023?
01. The basic exemption amount has been increased from Rs 2.5 lakh to Rs 3 lakh
02. The new tax regime becomes the default option for taxpayers. You will still have the option of returning to the old regime
03. Income tax slabs have been revised
04. A standard deduction of Rs 50,000 has been implemented for salaried individuals
05. Individuals with a taxable income of up to Rs.7 lakh will not have to pay any taxes if they choose the new tax regime in FY 2023-24. This, along with the standard deduction, makes Rs.7.5 lakh as your tax-free income under the new regime
What are the advantages of the new tax regime?
Under the new tax regime, you can keep track of rent receipts, travel tickets, and complicated tax planning. The new tax regime offers lower tax rates and fewer deductions. This eliminates the need to invest in tax-saving schemes and insurance plans which may not align with your financial goals.
Can I avail leave encashment with an exemption under the new regime?
Yes, you can avail leave encashment under the new regime. Post Budget 2023, the threshold has been increased 8x from Rs.3 lakh to Rs. 25 lakh.
