New Income Tax Slabs Budget 2023-24: Changes have been made in the income tax slab in the budget 2023. Let us know how much tax exemption will be given to the salaried people.
New Delhi , Budget 2023-24 made the salaried class happy. The rate of personal income tax has changed. Finance Minister Nirmala Sitharaman introduced new income tax slabs in the budget. The new income tax regime will be applicable in ‘default’. Under this, five slabs have been created and 0% tax has been kept on income up to Rs 3 lakh.
Income between Rs 3 to 6 lakh will attract 5% tax. The tax rate will be 10% on income of Rs 6 to 9 lakh, 15% on income of Rs 9 to 12 lakh, 20% on income of Rs 12 to 15 lakh and 30% on income above Rs 15 lakh. Sitharaman announced that the tax exemption limit has been raised to Rs 7 lakh. That means no tax will be charged on annual income up to Rs 7 lakh.
Tax will be deducted as per the new rates on income above Rs 7 lakh. As per the new system, a person with an annual income of Rs 15 lakh will have to pay tax of Rs 1.5 lakh, which was earlier Rs 1.87 lakh. In the new tax regime, it is proposed to increase the standard deduction to Rs 52,500 for salaried employees and pensioners. It is proposed to give standard deduction of Rs 50,000 to the salaried.
Union Budget: New Income Tax Slabs for 2023-24
Annual Income Tax Rate
- Rs 0 to Rs 3 lakh 0%
- Rs 3 to 6 lakh 5%
- Rs 6 to 9 lakh 10%
- Rs 9 to 12 lakh 15%
- Rs 12 to 15 lakh 20%
- Above Rs 15 lakh 30%
Under the new system, how will income tax be calculated?
The rates of income tax mentioned above will be applicable to the annual income above Rs 7 lakh. Means if your annual salary is also Rs 7,00,001 then you will have to pay tax. Under the new system, then you will have to calculate 5% tax on income from Rs 3 to 6 lakhs, 10% tax on Rs 6 to 7.001 lakhs.
Annual Salary – Old Tax Regime (2022-23) – New Tax Regime (2023-24) – Benefits
Rs 8 lakh – Rs 65,000 – Rs 35,000 – Rs 30,000
Rs 9 lakh – Rs 85,800 – Rs 45,000 – Rs 40,800
Rs 10 lakh – Rs 1,06,600 – Rs 60,000 – Rs 46,600
Rs 12 lakh – Rs 1,63,800 – Rs 90,000 – Rs 73,800
Rs 15 lakh – Rs 2,57,400 – Rs 1,50,000 – Rs 1,07,400
Rs 20 lakh – Rs 4,13,400 – Rs 3,00,000 – Rs 1,13,400
