New Delhi: The Union Budget 2023 has announced that from the 2023-24 financial year, there will be no tax on income up to Rs 7 lakh, which was earlier Rs 5 lakh.
"Currently, those with income up to Rs 5 lakh do not pay any income tax in both Old and New tax regimes. I propose to increase the rebate limit to Rs 7 lakh in the New tax regime," Finance Minister Nirmala Sitharaman announced while presenting the 2023 Union Budget n the Parliament.
The New Tax Regime, which will be considered a default regime, will have five slabs under it where taxable income will be calculated after all exemptions such as life insurance premiums and long-term mutual funds.
Taxable income of Rs 0-3 lakh (after all exemptions) will be nil;
Rs 3 lakh to Rs 6 lakh will be taxed at 5 per cent;
If income is above Rs 6 lakh, up to Rs 9 lakh, it will be taxed at 10 per cent;
Above Rs 12 lakh and up to 15 lakhs are to be taxed at 20 per cent; and
Income above Rs 15 lakh is to be taxed at 30 per cent