Union Budget 2023 – Increase in Income tax slab under section 115BAC

Till AY 2022-23, there has been 2 Income tax slabs. One is the old one in which all the deductions can be availed and the other one is the New Income tax slab under section 115BAC in which there has been certain options of percentage of tax on income being introduced to provide the comparison for the Taxpayers.

Now in the Finance Bill 2023 being presented on 1^st February 2023, the changes which have been proposed in the Bill are as follows :-

• The New Income tax slab shall be taken as the default income tax slab for the calculation of Income tax of the individuals or Hindu Undivided Family (HUF) or Association of persons (AOP) [other than the co-operative society] or body of individuals, whether incorporated or not, or an artificial juridical person.
• The tax rates under section 115BAC for the AY 2024-25 are as follows :-

• In the section 115BAC, the following deductions shall be proposed to be allowed in the Finance Bill 2023, which are as follows :-
  • Standard deduction as provided under section 16(ia) of the Act;
  • Deduction in respect of income in the nature of family pension as provided under section 57(iia) of the Act;
  • Deduction in respect of amount paid or deposited in the Agniveer Corpus Fund as proposed to be provided under Section 80CCH(2) of the Act.