Budget 2023: No income tax up to ₹7 lakh, revised tax slabs for new regime

New Delhi/Hyderabad, Feb 1 (Maxim News): Union Finance Minister Nirmala Sitharaman announced an increase in the income tax rebate limited from Rs. 5 lakhs to Rs. 7 lakhs. The income tax payee need not pay any tax who earns less than Rs. 7 lakhs She proposed to change the tax structure in this regime by reducing the number of tax slabs to 5 from 7.

On personal income tax, the Finance Minister announced that “Tax for income of Rs. 0 to Rs. 3 lakh is nil, for income above Rs. 7 lakhs, the Income Tax payee has to pay the income the tax from Rs. 3 lakhs to less than 6 lakhs, at 5 percent, from 6 lakhs to less than 9 lakhs will be taxed at 10 percent and income from above Rs. 12 lakhs to below Rs. 15 lakhs to be taxed at 20 percent and above 15 lakhs at Rs. 30 percent. For pensions, the finance minister announced extending the benefit of the standard deduction to the new tax regime. Each salaried person with an income of Rs. 15.5 lakhs or more will benefit by Rs. 52,500.

Sitharaman, while presenting the Union Budget in Parliament today said, “A person earning Rs. 9 lakhs a year will now be paying just Rs. 45,000 instead for Rs. 60,000 currently. similarly, a person earning Rs. 15 lakhs will not pay only 10 percent of this as tax. “The finance minister also said, the limit of Rs. 3 lakhs for tax exemption on leave encashment on salaried government employees. (Maxim News)

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