Income Tax Return Filing exemption limit

What is Income Tax? Income tax is a type of direct tax the central government charges on the income earned during a financial year by the individuals and businesses. It is calculated based on the tax slabs defined by Income Tax Department.

What’s New in Income Tax

Budget 2023 Updates

1. 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.
2. 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%



3. 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%.
4. The new IT regime will be the default tax regime. However, taxpayers can choose the old regime.
5. The standard deduction of Rs 50,000 has been introduced under the new tax regime for salaried taxpayers.

The Budget 2023 brings several significant changes to the income tax return filing process, emphasizing simplicity, accuracy, and compliance. Taxpayers should stay updated with these latest updates and ensure timely and accurate filing to avoid penalties. Consulting a tax professional or referring to the official government guidelines can provide further clarity on the revised procedures.