"Standard Deduction is only for those earning โน15.5L+"
Busting all myths on Personal Taxation from #Budget2023 ๐
Busting all myths on Personal Taxation from #Budget2023 ๐
[1] Myth: Old Tax Regime has gone
FM said, "New tax regime will be the default regime"
This doesn't mean that old regime is out
Just that you'll have to declare to your employer & while filing ITR if you're opting the Old one
Otherwise tax will be calculated as per new regime
FM said, "New tax regime will be the default regime"
This doesn't mean that old regime is out
Just that you'll have to declare to your employer & while filing ITR if you're opting the Old one
Otherwise tax will be calculated as per new regime
[2] Myth: Std Deduction is for those earning โน15.5L+
FM said, "Those earning โน15.5L+ will benefit by โน52.5k"
She was comparing difference b/w New Regime until 31 Mar'23 vs going forward
Those who opt for new regime will get a std deduction of โน50k, irrespective of income
FM said, "Those earning โน15.5L+ will benefit by โน52.5k"
She was comparing difference b/w New Regime until 31 Mar'23 vs going forward
Those who opt for new regime will get a std deduction of โน50k, irrespective of income
[3] Myth: New Regime is the best always
If your income is 10L and you are:
A. Paying Rent/Interest on Home Loan of โน2L
B. Investing in 80C-โน1.5L
Your taxable income will be โน6.5L
Old regime tax = โน42.5+Cess
New regime tax = โน60k+Cess
Income assumed net of Std Deduction
If your income is 10L and you are:
A. Paying Rent/Interest on Home Loan of โน2L
B. Investing in 80C-โน1.5L
Your taxable income will be โน6.5L
Old regime tax = โน42.5+Cess
New regime tax = โน60k+Cess
Income assumed net of Std Deduction
[4] Myth: Gains from Insurance Policy will get taxed
If your policy has been issued on or before 31 Mar'23, no tax applicable
Even if you buy new endowment policies on or after 1 Apr'23,
you won't be taxed unless sum of all policy premium is <โน5L
If your policy has been issued on or before 31 Mar'23, no tax applicable
Even if you buy new endowment policies on or after 1 Apr'23,
you won't be taxed unless sum of all policy premium is <โน5L
[5] Confusion: What's the meaning of slabs:
๐ถโน0-3L: 0%
๐ถโน3-6L: 5%
๐ถโน6-9L: 10%
when there's no tax till โน7L
If you make till โน7L, you'll be taxable at these rates
But get a REBATE (think tax exempt) and pay no tax
If you earn >โน7L, you're taxable as per these rates
๐ถโน0-3L: 0%
๐ถโน3-6L: 5%
๐ถโน6-9L: 10%
when there's no tax till โน7L
If you make till โน7L, you'll be taxable at these rates
But get a REBATE (think tax exempt) and pay no tax
If you earn >โน7L, you're taxable as per these rates
TL;DR
[1] Old Tax Regime has gone
[2] Std Deduction is for those earning โน15.5L+
[3] New Regime is the best always
[4] Gains from Insurance Policy will get taxed
[5] Confusion: What's the meaning of slab when no tax till โน7L
[1] Old Tax Regime has gone
[2] Std Deduction is for those earning โน15.5L+
[3] New Regime is the best always
[4] Gains from Insurance Policy will get taxed
[5] Confusion: What's the meaning of slab when no tax till โน7L
Iโm sure your friends & family members are confused
Share this thread with them & letโs bury all the myths
Also, tell me if you have any doubts around the budget?๐
Share this thread with them & letโs bury all the myths
Also, tell me if you have any doubts around the budget?๐
Loading suggestions...