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Income Tax Slab: In the last full budget of Modi Government 2.0, the Finance Minister has given a big gift to the taxpayers. Now there will be no tax on income up to seven lakhs. Let us know from CA Ajay Bagadia, Abhinandan and Santosh Mishra that who will have to pay how much tax according to the salary? How much will be the benefit or loss in the old and new tax system?
According to CA Ajay Bagadia, currently a person does not have to pay any tax on income up to Rs 5 lakh per annum. Seven tax slabs were kept in this tax system introduced in the year 2020.
0 to 2.5 lakh – No tax
2.5 to 5 lakh – 5 percent
5 lakh to 7.5 lakh – 10 percent
From Rs 7.5 lakh to Rs 10 lakh – 15 per cent
10 lakh to 12.5 lakh – 20 percent
From Rs 12.5 lakh to Rs 15 lakh – 25 per cent
Above Rs 15 lakh – 30 per cent
According to Bagadia, now the new income tax system is by default and the old one is optional. If the taxpayer wants, he can remain in the old tax system with exemptions and deductions. In the old tax system, you can avail many types of exemptions. Like exemption of Rs 1.50 lakh under 80C, exemption of Rs 25000 under 80D. Let us tell you that the old system is still applicable, a person can choose the new or old tax system by looking at his profit and loss.
Tax on annual salary of Rs 7.5 lakh
CA Santosh Mishra says that if you earn Rs 7 lakh annually, then you will not have to pay any tax and if you earn more than Rs 7 lakh or Rs 7.5 lakh annually in terms of salary, then you will have to follow the slabs given in the new tax system. As soon as your income crosses Rs 7 lakh, you come under the tax slab.
In this, you will not have to pay any tax on the first three lakhs. But, after this, you will have to pay Rs 15,000 at the rate of 5 percent tax on three lakhs to six lakhs (taxable income three lakhs). Whereas, you will have to pay Rs 30,000 at the rate of 10 percent tax on six to nine lakhs (taxable income three lakhs).
There will be so much benefit
You will have to pay Rs 45000 as income tax and Rs 800 as 4% cess. In this way, you will have to pay Rs 45800 as tax on an income of 9 lakhs. That is, in the new tax system, if you earn 9 lakhs, you will save Rs 15000 in annual income tax. Because till now, according to the new tax system, Rs 60000 has to be paid as income tax on an income of 9 lakhs.
Tax on annual income of Rs 12 lakh
CA Abhinandan says that if someone earns Rs 12 lakh annually, then like before, no tax will have to be paid on the first three lakhs. After this, Rs 15000 will have to be paid on the next three lakhs at the rate of 5%, Rs 30000 on the next three lakhs at the rate of 10% and Rs 45000 on the remaining three lakhs at the rate of 15%. In this way, you will have to pay Rs 90000 as income tax and Rs 3600 as 4% cess on tax. In total, you will have to pay Rs 93600.
Those earning 15 lakh rupees annually will have to pay this much tax
CA Ajay Bagadia told that those who earn Rs 15 lakh annually fall in the fifth tax slab i.e. Rs 12 to 15 lakh. In this slab, 20 percent tax has to be paid, but you will not have to pay this 20 percent tax on your entire income. You will have to pay 20 percent tax only on whatever you have earned above Rs 12 lakh i.e. the top three lakh rupees and the initial tax slab will be applicable on the rest of the money. You will have to pay income tax of Rs 1 lakh 50 thousand.