[Latest] What is the New Income Tax Slab Rate 2023?

New Income Tax Block 2023: Finance Minister Nirmala Sitharaman will present the Union Budget 2023 in Parliament today, February 1. During the session, the Minister of Finance announced the new tax regime for the financial year 2023-24.

Under the new regime, the income tax refund has been extended to Rs 7 lakh. Earlier, it was Rs 5 lakhs.

Effective April 1, 2020 (FY 2020-21), the Government of India implemented a new voluntary Hindu Undivided Family (HUF) tax regime. As a result, Section 115BAC of the Income Tax Act, 1961 was enacted, which specified lower tax rates for individual and HUF taxpayers who give up certain tax deductions or exemptions. However, individual taxpayers were given the option to file their income tax returns either under the old tax system or under the new tax regime in the current financial year (2022-2023).

Read – Budget 2023 Highlights

What are the new fixed income tax rates under the new tax regime?

Below is a table showing the tax brackets for salaried individuals under the new 2023 tax regime:

Up to Rs 3 lakh

NULL

From Rs 3 lakh to Rs 6 lakh

5%

From Rs 6 lakh to Rs 9 lakh

10%

From Rs 9 lakh to Rs 12 lakh

fifteen%

Rs 12 lakh to Rs 15 lakh

twenty%

More than Rs 15 lakh

30%

Additionally, Finance Minister Nirmala Sitharaman has announced that she will reduce the highest surcharge rate from 37 per cent to 25 per cent in the new tax regime.

Under the old tax regime, income up to Rs 2.5 lakh was exempt from personal income tax. The tax rates range from 5% for income between Rs 2.5 lakh and Rs 5 lakh and 20% for income between Rs 5 lakh and Rs 10 lakh. 30% of income above Rs 10 lakh is taxable.

With the announcement of the new tax slab, wage earners have received great relief.

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Source: sef.edu.vn

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