This year’s Budget 2023 announcements will change the way you decide your finances. Considering how income and taxes you pay are key to deciding your savings and investments, it makes sense to learn of the new Income Tax slab rates announced in this year’s budget speech.’
The new income tax slabs under the new tax regime
Up to ₹3 lakhs: NIL
Income in the range of ₹3 lakh- ₹6 lakh: 5%
Income in the range of ₹6 lakh- ₹9 lakh: 10%
Income in the range of ₹9 lakh- ₹12 lakh: 15%
Income in the range of ₹12 lakh- ₹15 lakh: 20%
Income over and above ₹15 lakh: 30%
Further, the government has rejigged the limit sent under Section 87A of the Income Tax Act, 1961. The rebate under section 87A of the new income regime has been hiked to ₹7 lakhs. Apart, the standard deduction under the new tax regime for individuals with income up to ₹15 lakh has now been pegged at ₹52,400.
Taxpayers with income of ₹15.5 lakh and above are eligible for a standard deduction of ₹52,500 in the new tax regime. Currently, the standard deduction is ₹50,000 in the old regime and the max deduction for professional tax is ₹2,500.
An individual with an annual income of ₹9 lakh will have to pay only ₹45,000 tax.
The surcharge rate is now 25 per cent from the earlier 37 per cent.
Also, the new tax regime will be the default tax regime though citizens will continue to reap the benefits of the old regime.