New Delhi, February 1: Union Finance Minister Nirmala Sitharaman on Wednesday presented the Union Budget 2023-24 in Parliament and announced a slew of changes in the new income tax regime introduced in 2020. Nirmala Sitharaman announced to extend the income tax exemption limit to Rs 3 lakh under the new income tax regime. She also announced to hike the rebate under section 87A of new income regime to Rs 7 lakh in the Union Budget 2023. Budget 2023 Highlights: Cigarettes To Get Costlier As FM Nirmala Sitharaman Increases Custom Duty.

Previously, the income tax exemption limit had been set at Rs 2.5 lakh under the new tax regime. No changes have been announced regarding income tax exemption limit, rebate and tax slabs under the old tax regime. Budget 2023: Revised Fiscal Deficit at 6.4% of GDP, Says Nirmala Sitharaman.

New Income Tax Slabs 2023-24 Under New Tax Regime:

Income Level (Slab) Tax Rate Under New Tax Regime
Up to 3,00,000 0%
3,00,001 to 6,00,000 5%
6,00,001 to 9,00,000 10%
9,00,001 to 12,00,000 15%
12,00,001 to 15,00,000 20%
Above 15,00,000 30%

Income Tax Slabs 2023-24 Under Old Tax Regime:

Income level (slab) Old Tax Regime
Up to 2,50,000 0%
2,50,001 to 5,00,000 5%
5,00,001 to 7,50,000 10%
7,50,001 to 10,00,000 15%
10,00,001 to 12,50,000 20%
12,50,001 to 15,00,000 25%
Above 15,00,000 30%

The budget proposed to make the new income tax regime as the default tax regime.  However, citizens will continue to have the option to avail the benefit of the old tax regime.

According to the government, the new tax regime will provide major relief to all tax payers in this regime. An individual with an annual income of Rs 9 lakh will be required to pay only Rs 45,000, said the government. This is only 5 per cent of his or her income. It is a reduction of 25 per cent on what he or she is required to pay now, i.e. Rs 60,000. Similarly, an individual with an income of Rs 15 lakh would be required to pay only Rs 1.5 lakh or 10 per cent of his or her income, a reduction of 20 per cent from the existing liability of Rs 1,87,500.

(The above story first appeared on LatestLY on Feb 01, 2023 12:39 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).