New Delhi: Finance Minister Nirmala Sitharaman on Wednesday announced new tax slabs for 2023-24, under which no tax would be payable for income up to Rs 7 lakh per annum under the new income tax regime.
“Currently, those with an income of up to Rs 5 lakhs don’t pay any income tax. I proposed to increase the tax rebate limit to Rs 7 lakhs in the new tax regime,” Sitharaman said while presenting the Union Budget for 2023-24 in Parliament.
A tax of 5 per cent would be levied on total income between Rs 3 lakh and Rs 6 lakh, a 10 per cent tax would be imposed on income between Rs 6 lakh to Rs 9 lakh, it would be 15 per cent on income between the range of Rs 9 lakh to Rs 12 lakh.
On the income range of Rs 12 lakh to Rs 15 lakh, 20 per cent tax would be levied, while tax would be 30 per cent on income slab of Rs 15 lakh and above, the finance minister informed.
As per the announcements in the Union Budget 2023-24, the new income tax rates are as below:
- Rs 0-3 lakh – Nil.
- Rs 3-6 lakh – 5%.
- Rs 6-9 lakh – 10%.
- Rs 9-12 lakh – 15%.
- Rs 12-15 lakh – 20%.
- Above Rs 15 lakh – 30%.
She added, “I propose to reduce the highest surcharge rate from 37% to 25 % in the new tax regime.”
It is believed that the change in the income tax slab will offer some respite to the middle class.
(IANS)
