Updated on May-2023
The greytHR is ready with the new budget changes for the financial year 2023-24. The latest budget includes lower tax rates under the new regime. From 1st April 2023, the greytHR application will, by default, function as per the latest budget changes.
The budget changes will automatically reflect in the admin portal on the Income Tax page and in the ESS portal on the Declare Income Tax page.
The following are the revised tax slabs under the new regime for the financial year 2023-24:
As per the new tax regime, under section 87/A, an employee with a taxable income of less than Rs 700,000/- is exempted from paying tax.
In the new tax regime, the government has reduced the surcharge rate for the highest tax slab, i.e., Rs 2 crore, from 37% to 25%.
There was never a standard deduction for an employee before. The standard deduction of Rs 50000/- is now applicable in the new as well as old regime for an employee.
The current leave encashment exemption limit is revised from Rs 3,00,000/- to Rs 25,00,000/-.
If an employee doesn’t choose a regime, the new regime will be the default regime.
Previously, if someone earned Rs 7,00,001, they had to pay Rs 25,000 as tax. Even if they earned an additional Rs 1, they still had to pay Rs 25,000.
But now, after the marginal relief amendment, from April 1, 2023, If someone earns Rs 7,00,001, they only have to pay Rs 1 as tax.
The Marginal Relief is applicable for employees with taxable income range between Rs 7,00,001 to Rs 7,27,780.
Note: Under the old regime, an employee whose taxable income is less than Rs 500000/- is exempted from paying tax.
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