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Union Budget 2023: Are you richer or poorer? Here’s the bottomline



Do it Budget to make you richer or poorer? The short answer is that while there is no earnings = earnings the extent to which you lose as a taxpayer, the range of income that can be gained is also quite limited and at opposite ends of the range.
➤Those earning less than Rs 7 lakh a year will no longer be subject to the oppression of the tax authorities. If you are a salaried person, earn Rs 7.5 lakh, as you also get a standard exemption of Rs 50,000.
➤Someone like that, no Tax Savings options such as home loan repayment or Sec 80C investments such as insurance policies or PPF in addition to the PF deduction will be taxed at Rs 39k under the new scheme. Now she won’t have to pay anything. However, if the same person used up the 80C exemption and also took advantage of the Rs 25,000 exemption for health insurance, the tax bill under the old regime would be Rs 23,400, which can now be reduced to zero. .
➤Between Rs 7.5 lakh-Rs 15.5 lakh annual income, the new scheme continues to be less attractive than the old one as long as you can fully utilize the benefits under 80C, 80D (medical insurance) economy) and Sec 24 (home loan interest rate). If you can’t, the new mode still makes more sense. Apart from Rs 15.5L, the tax bill under the two options becomes identical if you can claim the full benefits under the old scheme.
➤This is true up to an annual income of Rs 5.5 crore. In addition, the highest surcharge of 37% under the old and new scheme, will now be capped at 25% under the new scheme. The effective marginal tax rate becomes 39% in the new regime compared to 42.74% in the old regime. So at Rs 5.5 cr you save Rs 21.1L, at Rs 10 cr increase to Rs 38.6L and at Rs 20 cr to Rs 77.6L, in each case down 8, 8% of your tax bill.
➤At all levels, the proposed new mode is given priority. For 7.5L you earn Rs 39,000. The increase reaches Rs 54,600 with an income of Rs 15.5L and then stabilizes until the benefit of the surcharge cap kicks in.
➤You can also achieve through Mahila Samman saving certificates, yielding 7.5% interest with a 2-year investment term. Elderly people can invest double deposit with higher interest rate, from maximum 15L to 30L, get extra income from interest 15k Rs/year. Similarly, increasing the limit for monthly income plans from Rs 4.5 to 9L for single accounts and from 9L to 15L for joint accounts can earn you an extra Rs 30k or more depending on your needs. term of office.
➤On the other hand, capital gains exceeding Rs 10 crore will be taxed as long-term capital gains even if you reinvest the entire amount in residential real estate. Suppose, you bought something for Rs 5 cr and now sell it for cr 20: under the old regime, if you invest 15 cr (your profit) in buying a house, you capital gains tax will be avoided. Now, only Rs 10 cr of that will be exempt and you will have to pay capital gains tax on the remaining Rs 5 cr, at 20% at indexing.

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