{"id":5331,"date":"2023-02-05T18:31:07","date_gmt":"2023-02-05T18:31:07","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=5331"},"modified":"2024-04-04T11:38:32","modified_gmt":"2024-04-04T11:38:32","slug":"new-vs-old-tax-regime-after-budget-2023","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/new-vs-old-tax-regime-after-budget-2023\/","title":{"rendered":"NEW VS OLD TAX REGIME AFTER BUDGET 2023"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5332\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/tax-slab-NEW-Budget-2023.jpg\" alt=\"tax slab NEW Budget 2023\" width=\"998\" height=\"1142\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/tax-slab-NEW-Budget-2023.jpg 905w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/tax-slab-NEW-Budget-2023-262x300.jpg 262w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/tax-slab-NEW-Budget-2023-895x1024.jpg 895w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/tax-slab-NEW-Budget-2023-768x879.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/tax-slab-NEW-Budget-2023-800x916.jpg 800w\" sizes=\"(max-width: 998px) 100vw, 998px\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e0229e49f1a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e0229e49f1a\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/new-vs-old-tax-regime-after-budget-2023\/#TAX_REGIME_AFTER_BUDGET_2023\" title=\"TAX REGIME AFTER BUDGET 2023\u00a0\">TAX REGIME AFTER BUDGET 2023\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/new-vs-old-tax-regime-after-budget-2023\/#NEW_VS_OLD_TAX_REGIME_AFTER_BUDGET_2023\" title=\"NEW VS OLD TAX REGIME AFTER BUDGET 2023\u00a0\">NEW VS OLD TAX REGIME AFTER BUDGET 2023\u00a0<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/new-vs-old-tax-regime-after-budget-2023\/#Changes_in_personal_tax_via_Finance_Act_2023\" title=\"Changes in personal tax via Finance Act 2023\">Changes in personal tax via Finance Act 2023<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/new-vs-old-tax-regime-after-budget-2023\/#Conditions_to_optin_for_New_Tax_Regime_in_Assessment_Year_2024-25\" title=\"Conditions to optin for New Tax Regime in Assessment Year 2024-25\">Conditions to optin for New Tax Regime in Assessment Year 2024-25<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"TAX_REGIME_AFTER_BUDGET_2023\"><\/span><span style=\"color: #000080;\">TAX REGIME AFTER BUDGET 2023\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Major Direct tax proposals (from speech)<\/p>\n<p>1. Rollout of next gen ITR form<br \/>\n2. New limit for 44AD &amp; ADA : 3 crore &amp; 75 Lacs<br \/>\n3. Expense deduction to MSME to be allowed on payment basis<br \/>\n4. New cooperatives manufacturing tax @ 15% if upto 31.03.24<br \/>\n5. Higher loan limit \/cash deposit Rs 2 lacs for PAC society &#8211;<br \/>\n6. Startups:<br \/>\na) Date of incorporation for. startup extended to 31.03.24<br \/>\nb) Extension of Carry forwards of losses 7 yrs in case of change in shareholders<\/p>\n<p>7. Selective scrutiny + More CIT to dispose off small appeals<\/p>\n<p>8. Extension of tax benefits for IFSC<\/p>\n<p>9. Personal Income tax<br \/>\na) Tax rebate limit extended to 7 lacs (new regime)<\/p>\n<p>b) change in tax slabs &amp; new tax rates<\/p>\n<p style=\"padding-left: 40px;\">0-3 L : Nil<br \/>\n3-6 L : 5%<br \/>\n6L-9L : 10%<br \/>\n9L-12L: 15%<br \/>\n12-15 L : 20%<br \/>\n15L +: 30%<\/p>\n<p>c) Salaried class &amp; pensioners(incl family pensioners) :<br \/>\nStandard deduction extended<\/p>\n<p>d) Highest surcharge reduced from 37% to 25%<br \/>\nNow MMTR : 39%<\/p>\n<p>e) Leave encashment exemption (pvt) increased from 3Lacs to 25 Lacs<\/p>\n<p>f) New tax regime is now default tax regime -Old tax regime will continue<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-5333\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/photo_2023-02-05_14-41-38.jpg\" alt=\"new income tax budget 2023\" width=\"1280\" height=\"749\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/photo_2023-02-05_14-41-38.jpg 1280w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/photo_2023-02-05_14-41-38-300x176.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/photo_2023-02-05_14-41-38-1024x599.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/photo_2023-02-05_14-41-38-768x449.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/photo_2023-02-05_14-41-38-800x468.jpg 800w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"NEW_VS_OLD_TAX_REGIME_AFTER_BUDGET_2023\"><\/span><a href=\"https:\/\/carajput.com\/publications\/cbdt-clarification-related-to-old-vs-new-tax-regime-recent-update.pdf\"><span style=\"color: #000080;\">NEW VS OLD TAX REGIME AFTER BUDGET 2023\u00a0<\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Increase in tax rebate:<\/strong>\u00a0U\/s 87A rebate limit has been increased from INR 12,500\/- to INR 25,000\/- in the new income tax mechanism\/regime.<\/p>\n<p><strong style=\"font-style: inherit;\">New income tax mechanism\/regime\u00a0<\/strong><strong>becomes default:<\/strong>\u00a0The new income tax mechanism\/regime has been made default regime. That is, while filing an ITR, it will by default show the new income tax mechanism\/regime. If you want to go with the old the income tax mechanism\/regime, Income taxpayer will have to select it manually.<\/p>\n<p><strong>Standard deduction of INR 50,000\/-:<\/strong>\u00a0upto the earlier past year, an pensioners or employees paying tax used to get income tax deductions of INR 50,000\/- only under old income tax mechanism. From current year, pensioners &amp; employees who choose New income tax mechanism\/regime will also get a INR 50,000\/- standard deduction under the income tax.<\/p>\n<p><strong>Tax exemption limit in the <\/strong><strong>new income tax mechanism\/regime.<\/strong><strong>:\u00a0<\/strong>The tax exemption limit has been increased in the new tax regime. People adopting the new tax system will get tax exemption on income of up to INR 3,00,000\/-, which till now was available only up to INR 2,50,000\/-. That means tax exemption on additional INR 50,000\/- will be available from this year.<\/p>\n<p><strong>For diff salaried incomes<\/strong><\/p>\n<p>Assumption- 80C investment 1.5 lac ( even other than Home loan) and 80D Mediclaim 25000 is claimed<\/p>\n<p><strong>conclusions<\/strong><\/p>\n<ul>\n<li>New regime is default setting- You have to file form for opt old one<\/li>\n<li>For ppl having NO housing loan &#8211; New regime is beneficial &#8211; It doesn&#8217;t make diff whether You are paying 80C+80D full<\/li>\n<li>Business ppl will have slight higher tax than above working as they wont get standard deduction of 50000<\/li>\n<li>For ppl having housing loan &#8211; Always Old regime is beneficial<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-5335\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/New-and-Old-tax-regism.jpg\" alt=\"New and Old tax regime\" width=\"960\" height=\"515\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/New-and-Old-tax-regism.jpg 960w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/New-and-Old-tax-regism-300x161.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/New-and-Old-tax-regism-768x412.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/New-and-Old-tax-regism-800x429.jpg 800w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-5334\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/photo_2023-02-01_17-11-23.jpg\" alt=\"taxation on income tax 2023\" width=\"1090\" height=\"746\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/photo_2023-02-01_17-11-23.jpg 1090w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/photo_2023-02-01_17-11-23-300x205.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/photo_2023-02-01_17-11-23-1024x701.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/photo_2023-02-01_17-11-23-768x526.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/photo_2023-02-01_17-11-23-800x548.jpg 800w\" sizes=\"(max-width: 1090px) 100vw, 1090px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-5748\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/New-Vs-old.jpg\" alt=\"New Vs old income tax system \" width=\"1080\" height=\"798\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/New-Vs-old.jpg 1080w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/New-Vs-old-300x222.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/New-Vs-old-1024x757.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/New-Vs-old-768x567.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/New-Vs-old-800x591.jpg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Changes_in_personal_tax_via_Finance_Act_2023\"><\/span><span style=\"color: #000080;\"><strong>Changes in personal tax via Finance Act 2023<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6554\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-4.jpg\" alt=\"Changes in personal tax via Finance Act 2023\" width=\"1257\" height=\"594\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-4.jpg 1257w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-4-300x142.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-4-1024x484.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-4-768x363.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-4-800x378.jpg 800w\" sizes=\"(max-width: 1257px) 100vw, 1257px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6555\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-3.jpg\" alt=\"Changes in personal tax via Finance Act 2023 -2\" width=\"1253\" height=\"511\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-3.jpg 1253w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-3-300x122.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-3-1024x418.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-3-768x313.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-3-800x326.jpg 800w\" sizes=\"(max-width: 1253px) 100vw, 1253px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6556\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-2.jpg\" alt=\"Changes in personal tax via Finance Act 2023 -3\" width=\"1258\" height=\"561\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-2.jpg 1258w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-2-300x134.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-2-1024x457.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-2-768x342.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-2-800x357.jpg 800w\" sizes=\"(max-width: 1258px) 100vw, 1258px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6557\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-1.jpg\" alt=\"Changes in personal tax via Finance Act 2023 -4\" width=\"1252\" height=\"615\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-1.jpg 1252w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-1-300x147.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-1-1024x503.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-1-768x377.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Budget-1-800x393.jpg 800w\" sizes=\"(max-width: 1252px) 100vw, 1252px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Conditions_to_optin_for_New_Tax_Regime_in_Assessment_Year_2024-25\"><\/span><a href=\"https:\/\/carajput.com\/publications\/cbdt-clarification-related-to-old-vs-new-tax-regime-recent-update.pdf\"><span style=\"color: #000080;\"><strong>Conditions to optin for New Tax Regime in Assessment Year 2024-25<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6632\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Conditions-to-optin-for-New-Tax-Regime-in-AY-2024-25.jpg\" alt=\"Conditions to optin for New Tax Regime in AY 2024-25\" width=\"1123\" height=\"1280\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Conditions-to-optin-for-New-Tax-Regime-in-AY-2024-25.jpg 1123w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Conditions-to-optin-for-New-Tax-Regime-in-AY-2024-25-263x300.jpg 263w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Conditions-to-optin-for-New-Tax-Regime-in-AY-2024-25-898x1024.jpg 898w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Conditions-to-optin-for-New-Tax-Regime-in-AY-2024-25-768x875.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/02\/Conditions-to-optin-for-New-Tax-Regime-in-AY-2024-25-800x912.jpg 800w\" sizes=\"(max-width: 1123px) 100vw, 1123px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>TAX REGIME AFTER BUDGET 2023\u00a0 Major Direct tax proposals (from speech) 1. Rollout of next gen ITR form 2. New limit for 44AD &amp; ADA : 3 crore &amp; 75 Lacs 3. Expense deduction to MSME to be allowed on payment basis 4. New cooperatives manufacturing tax @ 15% if upto 31.03.24 5. Higher loan &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[173],"tags":[903],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/5331"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=5331"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/5331\/revisions"}],"predecessor-version":[{"id":6917,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/5331\/revisions\/6917"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=5331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=5331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=5331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}