According to the media reports, Honorable Union Finance Minister, Mrs. Nirmala Sitharaman presented the Union Budget 2023- 2024 on Wednesday as per the announcement calculations for the income tax will change.
The Budget 2023: Comparison Between Old Vs New Slab
Old Tax Slab
- Below 2.5 lakh: Nil
- ₹2.5 lakh up to ₹5 lakh: 5%
- ₹5 lakh up to ₹7.5 lakh: 15%
- ₹7.5 lakh up to ₹10 lakh: 20%
- Above ₹10 lakh: 30%
According to the New Tax Slab
- Below ₹3 lakh: There will be no Tax.
- ₹3 lakh up to 6 lakh: 5%
- ₹6 lakh up to 9 lakh: 10%
- ₹9 lakh up to 12 lakh: 15%
- ₹12 lakh up to 15 lakh: 20%
- Above ₹15 lakh: 30%
In a comparison of the two slabs, the lowest slab has been increased from 2.5 lakhs to 3 lakhs. The standard benefits of PPF, NPS, and some other concessions will also be provided. So due to this the employee up to income slap of 7 Lakhs will be benefited.
This benefit comes just before the 2024 elections. According to livemint, Caroline Kulkarni, Head of Human Resources, Sanctum Wealth said, “Any opportunity that gets created for senior citizens to increase their retirement corpus is a welcome one.”
“The proposal to raise tax exemption on leave encashment on retirement is a positive move in that direction,” Caroline Kulkarni added.
Puneet Khurana, Group Head – Human Resources, Policybazaar and Paisabazaar said, “This year’s budget is commendable as it recognises that the power of our country lies with the youth. It infuses new energy into India’s youth power by including it in the seven priority focus areas.”
“Employers also understand that the future of the workforce lies in upskilling and reskilling their employees for overall organisational success and enhanced workforce management. The budget focuses on creating more job opportunities and skilling & training the youth of the country. Under the PMKVY 4.0 scheme, the country’s youth will learn new-age courses such as Robotics, Artificial Intelligence (AI), Internet of Things (IoT), Data Analytics and many more. “
“This will open a myriad of opportunities to augment their professional career and add value to businesses worldwide. The role of MSMEs has been instrumental in providing employment opportunities and contributing to the overall growth of the Indian economy. Today, the role of Human Resources (HR) has evolved to be more strategic in attaining the country’s economic development.” he further added.