NEW TAX REGIME 2023: All You Need To Know

New Tax Regime 2023

To make the new tax regime more favourable for tax payers, Budget 2023 has updated the tax slabs.

Any changes were made in the old tax regime for FY 2023-24?

The old tax regime has unchanged for Fiscal year 2023-24

Is the new tax regime default one?

From the FY 2023-24, the new tax regime will be default option

What happens if a salaried employee does not state that he prefers the old tax regime?

Beginning April1, 2023, if a salaried person does not specify that they prefer the old tax regime, then their employer deduct the taxes based on new tax regime by deault

Deductions not allowed in new tax regime

Under the new tax regime, the individual will forego 70 deductions and tax exemptions, which includes HRA tax exemption, LTA tax exemption, deduction up to Rs.1.5 lakh under Section 80C

Can I switch to the old tax regime next year?

Yes, an individual can switch to the old tax regime next year, provided the person does not have business income

who can't switch between the two regimes every year?

Taxpayers  having business income are not eligible to choose between the existing and new tax regime every year

Can I claim Section 80C deduction

No, if you choose the new  tax  regime you will not be able to claim  the Section 80C tax benefit