Finance Minister Nirmala Sitharaman on Wednesday presented the last Budget 2023 of the Modi government 2.0 before the general elections 2024. Making a big announcement for the middle class, he announced to increase the income tax exemption limit from Rs 5 lakh to Rs 7 lakh.
Slab and tax after change in new tax regime
On annual income up to Rs 0-3 lakh: 0%
On annual income up to Rs 3-6 lakh: 5%
On annual income up to Rs 6-9 lakh: 10%
On annual income up to Rs 9-12 lakh: 15%
On annual income up to Rs 12-15 lakh: 20%
On annual income up to Rs 15 lakh: 30%
old income tax slab and rate in new tax regime
Tax Slab : Tax Rate
0-5 lakh: No tax
5 to 7.5 Lakh : 10%
7.5 to 10 lakh : 15%
10 to 12.5 Lakh : 20%
12.5 to 15 lakhs : 25%
Above 15 Lakh : 30%
Sitharaman said that the number of income tax slabs has been reduced from six to five. 5 percent on Rs 3 to 6 lakh and 10 percent on Rs 6 to 9 lakh, 15 percent on Rs 9 lakh to Rs 12 lakh and 20 percent on Rs 12 lakh to Rs 15 lakh and 30 percent on income above Rs 15 lakh.
During this, he has made many other big announcements for taxpayers. Now in the new tax regime, no tax will have to be paid on income up to Rs 7 lakh. While Rs 45,000 will have to be paid for income up to Rs 9 lakh. Similarly, income tax of Rs 1.5 lakh will have to be paid up to Rs 15 lakh.
Amid rising inflation in the country and abroad, people were expecting a change in tax slabs in this budget. Sitharaman announced this in the last moments of her budget address.
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