Income Tax Slabs 2023: The Indian government announced a major overhaul of the income tax slab rates for the 2023-2024 fiscal year in the Union Budget. One of the key changes under the new regime is an increase in the basic exemption limit, which has been raised from its previous level to INR 3,00,000. This increase in the exemption limit will provide some much-needed relief to taxpayers who are struggling to make ends meet during these challenging times.
In addition to the increased exemption limit, the government has also made changes to the income tax rebate available to salaried and individual taxpayers. The rebate limit has been raised from INR 5,00,000 to INR 7,00,000, which is another welcome change for taxpayers who are looking for ways to reduce their tax liability.
Income Tax Slabs 2023: Tax slabs & rates for New Income Tax Regime:
|Up to Rs 3 lakh||NIL|
|Rs 3 lakh to Rs 6 lakh||5%|
|Rs 6 lakh to Rs 9 lakh||10%|
|Rs 9 lakh to Rs 12 lakh||15%|
|Rs 12 lakh to Rs 15 lakh||20%|
|Above Rs 15 lakh||30%|
These changes to the income tax slab rates are likely to be well-received by the public, as they will provide much-needed relief to taxpayers who are struggling to make ends meet. The increased exemption limit and higher rebate limit will allow taxpayers to keep more of their hard-earned money and use it to meet their various financial obligations.
Read Also: Agri-Startups to be Encouraged with Agriculture Accelerator Fund Establishment – Budget 2023
It’s important to note that the new income tax regime is just one part of the government’s broader economic plan, which is aimed at boosting economic growth and creating jobs. By providing relief to taxpayers, the government is hoping to encourage greater consumer spending and investment, which will in turn stimulate the economy and drive growth.
Income Tax 2023: Frequently Asked Questions
What is the new basic exemption limit for the 2023-24 financial year?
The new basic exemption limit for the 2023-24 financial year has been increased to Rs 3 lakh.
What is the new income tax rebate limit for salaried and individual taxpayers?
The new income tax rebate limit for salaried and individual taxpayers has been increased to Rs 7 lakh from the current Rs 5 lakh.
Are there any changes in the income tax slab rates for the 2023-24 financial year?
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%.
Can I avail of the exemption limit in the old Regime?
No, the new slab and exemption limit is only for New Regime.