Income Tax Changes In Budget 2023

In Focus

Posted By Atharv Sharma
Published Feb 01, 2023

Hindustan Times

I

During the Union Budget speech on February 1, Union Finance Minister Nirmala Sitharaman announced changes in the income tax slabs

Credits: ANI

Here are the income tax rule changes announced by FM Sitharaman in Budget 2023

Credits: ANI

Centre proposed to increase the rebate limit to ?7 lakh from the previous ?5 lakh in the new tax regime

Credits: Unsplash

Rebate

The number of slabs in the new tax regime will decrease to 5 from 6

Credits: Unsplash

Changes in income tax slabs

The new tax rates are 0 to ?3L - nil, ?3L to 6L - 5%, ?6L to 9L - 10%, ?9L to 12L - 15%, ?12L to 15L - 20% and above ?15L - 30%

Credits: Unsplash

The standard deduction of ?50,000 has now been extended to include the salaried class and pensioners

Credits: Unsplash

Standard deduction

An individual with ?9 Lakh annual income will now pay ?45,000 tax which is 5% of the salary

Credits: Unsplash

Each salaried person with an income of  ?15.5 lakh or more will thus stand to benefit by ?52,500

Credits: Unsplash

The maximum tax rate was lowered to 39% due to a reduction in the highest surcharge rate in the new tax system from 37% to 25%

Credits: Unsplash

Max tax rate is 39%

The threshold for non-government salaried employees' tax exemption on leave encashment upon retirement would be raised from ?3 lakh to ?25 lakh

Credits: Unsplash

Tax exemption on leave encashment

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