Hyderabad, February 1
Budget 2023-24: Union Finance Minister Nirmala Sitharaman announced that the new tax regime will now be the default tax regime. Presenting her fifth Budget 23, “This is the first Budget in Amrit Kaal, ” she stated.The Finance Minister while announcing much-awaited Income Tax slabs and rates for salaried employees, she also announced an increase in the income tax rebate limit from Rs 5 lakh to Rs 7 lakh under the new tax regime.
The new regime introduced in budget 2023 offers minimal exemptions but lower tax rates compared to the older tax regime which continues to co-exist.
Income limit for rebate of income tax increased from Rs. 5 lakhs to Rs. 7 lakhs in the new regime. So, an individual need not pay income tax if income is below Rs 7 lakhs under new tax regime only.
Tax Exemption limit increased from 2.5L to 3L and change in tax slabs under new tax regime. However, there is no change in the slabs of old tax regime. In this new tax regime above Rs. 7 lakhs then your income tax shall be calculated after Rs. 3 lakhs as per the new tax slabs.
salaried individual’s tax is calculated flat on their Salary income without any tax exemptions and deductions such as HRA, Housing loan interest, Life, medical Insurance premiums, Children Tuition fee, Tax saving FDs wich all these under section 80c, 80D, 80CCD 80D and other deductions under ITAct
Comparison (OLD and NEW Tax)
OLD Tax
Income tax
0-2.5L 0%
2.5L-5L 5%
5L-10L 20%
above 10L 30%
NEW Tax
0-3L 0%
3L-6L 5%
6L-9L 10%
9L-12L 15%
12L-15L 20%
above 15L 30%
