Budget 2023: The Payroll Changes You Need to Know
There are so many complexities involved in the payroll process. Although the government constantly strives to simplify and rationalize the tax provisions, the processes continue to confound many. The recent tax regime changes and other legal amendments have been made for the benefit of employees and employers.
CA Amaranath A.S., Co-founder, Arush India, was at our Parichay webinar to demystify the recent payroll changes made for the financial year (FY) 2023–24. Take a quick look at the highlights before watching the session recording.
What Are the Changes to the New Regime in Budget 2023?
- The new regime is the default regime if the employee doesn't make a choice
- New tax rates and slabs have been relaxed to benefit employees
- A Standard Deduction of INR 50,000 applies to salaried persons. Those earning a family pension are also eligible for a deduction of INR 15,000 or one-third of the income, whichever is lower
- The tax rebate has been raised from INR 5 lacs to INR 7 lacs
- The surcharge for those earning more than INR 5 crore has decreased from 37% to 25%
Other Amendments That Impact the Payroll
The leave encashment exemption limit (lifetime) has been increased from INR 3 lacs to INR 25 lacs
The salary threshold for Professional Tax (PT) has been revised from INR 15,000 to INR 25,000 for Karnataka State
The EPFO extended the deadline for exercising the option to contribute to a higher pension to March 3, 2023
Our guest speaker’s elaborate presentation covers the details.
WATCH THE RECORDING OF THE ENTIRE WEBINAR
