Finance Minister Nirmala Sitharaman presented the Union Budget 2023-24 today and the highlight was the upgrade to the new tax regime.
This year the Union Budget has come with lower tax rates, which might be beneficial for those starting with their professional journey. Scroll down to find out how this budget will help you:
Bye Bye Tax Stress & Hello Bougie Life
Let me start with the happiest announcement of the day. There is going to be zero tax burden on Gen Z who are about to start their career or are in the initial phase. Sitharaman proposed to raise the income tax rebate limit to shift from Rs 5 lakhs to Rs 7 lakhs in the new regime. This means that those in the new tax regime, with income up to Rs 7 lakhs will not have to pay any tax.
More cash rush means more money to spend, invest and save. Hurray! Forget waiting for a Zara sale to treat myself, I am ready to splurge.
Welcome To The Zero Tax World
Anyone whose income is between Rs 0-3 lakhs won’t have to pay any tax. This limit was Rs 2.5 lakh earlier. So, if you are just starting at Rs 25,000 per month, you have all the reasons to celebrate. Here’s the new tax slab:
0 to Rs3 lakhs – Nil
Rs3 lakhs to Rs6 lakhs – 5%
Rs6 lakhs to Rs9 lakhs -10%
Rs9 lakhs to Rs12 lakhs – 15%
Rs12 lakhs to Rs15 lakhs – 20%
Above Rs15 lakhs – 30%.
Old Income Tax Regime Vs New Income Tax Regime:
The Finance Minister gave an upgrade to the new income tax regime but this doesn’t impact old income tax regime. At present, those with income up to Rs 5 lakhs do not pay any income tax in the new tax regime. In the new income tax slab, a standard deduction of Rs 50,000 has also been introduced. This was earlier available under the old structure only. The new income tax structure is now the default option. But you do have the option to opt for the old tax regime. Here’s the old-tax slab:
0 to Rs 2.5 lakhs – Nil
Rs 2.5 lakhs to upto Rs 5 lakhs – 5%
Above 5 lakhs to Rs 10 lakhs -20%
Above Rs 10 lakhs – 30%
The old tax regime might be more lucrative for people with higher annual incomes, along with the deductions like 80C and home loans. But for those with an income up to Rs 7 lakhs, the new regime is the way to go.
Ladies, Save Up For The Europe Trip
The Finance Minister announced ‘Mahila Samman Saving Certificate’ for women with a fixed interest rate of 7.5 per cent. This one-time small savings scheme has a two-year period till March 2025 with ₹2 lakh investment limit. What a sweet deal.
Techies Rejoice!
It’s a great day for technogeeks. According to the Budget 2023-24, mobile phones and televisions are getting cheaper. BRB, making plans to buy an iPhone.
Other things that are going to get cheaper are—machinery for lithium-ion batteries and raw materials for the EV industry.
Quit Smoking!
They often say that the best time to quit a vice is right now and I agree. Taxes on cigarettes will be hiked by 16 per cent. That’s all the push I needed to call it quits. Thank you budget.
The other things that have turned costlier after the budget are—articles made from gold bars, imitation jewellery, silver, electric kitchen chimney, imported bicycles and toys and electronic vehicle imports.
I know most of the Gen Z and millennials are jumping with joy about the Budget 2023 announcements. Meanwhile, I am planning to move my wishlist products to the cart now. Ciao!
Feature Image: Pexels