New income tax slabs FY23-24: No tax if income is up to Rs 7.5 lakh but 10% tax rate for income between Rs 6 and 9 lakh, explained – Budget 2023: What taxpayers must know

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For instance, your total income is Rs 8 lakh. Let’s see how your tax will be calculated under the new income tax regime.Your total income = 8 lakh
Standard deduction = Rs 50,000
Total taxable income = Rs 8,00,000 – Rs 50,000 = Rs 7,50,000
Under the new income tax slab, your tax liability will be
Income up to Rs 3,00,000: Nil
Income between Rs 3,00,000 and Rs 6,00,000: 5% of Rs 3,00,000 = Rs 15,000
Income from Rs 6,00,000 to Rs 7,50,000 = 10% of Rs 1,50,000 = Rs 15,000
Tax liability = Rs 15,000 + Rs 15,000 = Rs 30,000
Cess at 4% on Rs 30,000 = Rs 1,200

So you will end up paying Rs 31,200 in income tax. As your income is above Rs 7.5 lakh, you will not be able to claim any rebate under section 87A. Do remember this while filing your income tax return for FY2023-24.

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