Budget 2023: No income tax up to Rs 7 lakh; new Income Tax slabs rejigged - details
Budget 2023: Tax bracket has been revised, FM Sitharaman said there will be no income tax for individuals earning upto Rs 7 lakhs.
Union Finance Minister Nirmala Sitharaman on Wednesday announced to hike rebate on personal income tax to Rs 7 lakh from Rs 5 lakh in the new Income Tax regime. It means that a salaried person earning up to Rs 7 lakh yearly will have to pay no income tax.
Personal #IncomeTax for the hardworking middle class
Currently, those with an income of Rs 5 lakhs do not pay any income tax and I proposed to increase the rebate limit to Rs 7 lakhs in the new tax regime
Finance Minister @nsitharaman
#Budget2023 #AmritKaalBudget pic.twitter.com/4PBNa3KsG5
— PIB India (@PIB_India) February 1, 2023
Besides, she also announced the reduction of the slabs under the new Income Tax regime from 5 lakh to 7 lahks.
"The new tax rates are 0 to Rs 3 lakhs - nil, Rs 3 to 6 lakhs - 5%, Rs 6 to 9 Lakhs - 10%, Rs 9 to 12 Lakhs - 15%, Rs 12 to 15 Lakhs - 20% and above 15 Lakhs - 30%, " says Union Finance Minister Nirmala Sitharaman.
Previously, the tax bracket was higher for both new and tax regimes. In last year’s budget, Nirmala Sitharaman did not make any changes to the existing tax system. Thus, the middle class and salaried class were looking forward to some major announcements.
Watch the video on the new tax regime here
The government had in 2019 introduced a new tax regime with effect from the financial year 2020-21. It offers seven tax slabs with prevailing rates reduced on income up to Rs 15 lakhs. Due to the income slabs and the various tax rates, multiple exemptions and deductions are not applicable here.
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