Think about Shifting your staff to New Tax Regime….
This Change can be from 1-4-2023 ( with next increment )
Strong Suggestion : Shift all staff and workers to New Scheme, and make your Salary Package, very very simple
biggest benefit to employers
no need to assemble so many papers from the staff
reduction of paperwork by 80%
reduce risk of TDS audits
reduce risk of wrong paperwork by staff
biggest benefit to staff
No tax till 7.50 lakhs
no force to do unnecessary savings,.,that reduces the money in hand
those savings also had low rate of interest
and live free
New Tax Regime – what is that ?
A new tax regime was introduced in Budget 2020 wherein the tax slabs were altered, and taxpayers were offered concessional tax rates.
However, those who opt for the new regime cannot claim several exemptions and deductions, such as HRA, LTA, 80C, 80D and more. Because of this, the new tax regime did not have many takers.
The government in Budget 2023 introduced 5 key changes to encourage taxpayers to adopt the new regime. They are:
- Higher Tax Rebate Limit: Full tax rebate on an income up to ₹7 lakhs has been introduced. Whereas, this threshold is ₹5 lakhs under the old tax regime. This means that taxpayers with an income of up to ₹7 lakhs will not have to pay any tax at all under the new tax regime!
- Streamlined Tax Slabs: The tax exemption limit has been increased to ₹3 lakhs and the new tax slabs are:
Total IncomeRate of Tax
up to ₹3,00,000. Nil
₹3,00,001- ₹6,00,000 5%
₹6,00,001- ₹9,00,000. 10%
₹9,00,001- ₹12,00,000. 15%
₹12,00,001- ₹15,00,000. 20%
₹15,00,001 and above 30%
New Scheme, Advantages, disadvantages, increments, make basic bigger, make it at least 50% of total
So, when you think …. New Regime vs Old Regime… What to choose for your Staff and workers
Our Answer is ____ Make Life Easy for both Parties. Do not make too many fancy allowances and perks. Keep it very simple. Single column – Basic Salary only.
Sangeet Kr Gupta
These are my personal and my professional views, based on the discussion with various stake holders. Today almost everything is taxable ( at lower rate ) by whatever name called
so, make life easy
Keep the employer safe. Dont Risk his TDS Audits, and make the package simple