New Delhi: Presenting the last full-fledged Budget of the Modi government ahead of the 2024 general elections, Union Finance Minister Nirmala Sitharaman on Wednesday announced that the Rebate limit for personal income tax has been increased from ₹ 5 lakhs to ₹7 lakhs for Income tax payers in the new tax regime.

She also announced that the new tax regime will be the default tax regime. Citizens will however have the option to be in the old tax regime.

As per the new regime, the tax rebate has been increased from Rs 5 lakh to Rs 7 lakh. “Currently, those with an income of Rs 5 lakhs do not pay any income tax and I proposed to increase the rebate limit to Rs 7 lakhs in the new tax regime, Thus persons in the new tax regime with up to the income of Rs 7 lakh will not have to pay any tax at all,” the Finance Minister said while presenting the Budget.

#UnionBudget2023 | Personal income-tax | Income tax- rebate extended on income up to Rs 7 lakhs in new tax regime: FM Sitharaman pic.twitter.com/f0E22hmRgT

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“I introduced in 2020, the new personal income tax regime with 6 income slabs, starting from Rs 2.5 Lakhs. I propose to change the tax structure in this regime by reducing the number of slabs to 5 and increasing the tax exemption limit to Rs 3 Lakhs, said Sitharaman while announcing the revised tax slabs. 

#UnionBudget2023 | Personal Income Tax: “The new tax rates are 0 to Rs 3 lakhs – nil, Rs 3 to 6 lakhs – 5%, Rs 6 to 9 Lakhs – 10%, Rs 9 to 12 Lakhs – 15%, Rs 12 to 15 Lakhs – 20% and above 15 Lakhs – 30%, ” says Union Finance Minister Nirmala Sitharaman pic.twitter.com/HGLkACRuaj

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Here are the revised tax slabs under the new tax regime

•  Income of Rs 0-3 lakh is not taxed.
•  Income above Rs 3 lakh and up to Rs 6 lakh is to be taxed at 5% under the new regime.
•  Income above Rs 6 lakh and up to Rs 9 lakh is to be taxed at 10% under the new regime.
•  Income above Rs 12 lakh and up to Rs 15 lakh is to be taxed at 20% under the new regime.
•  Income above Rs 15 lakh is to be taxed at Rs 30%.

DeshGujarat