[Latest] What is the new income tax rate in 2023?

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

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

Effective April 1, 2020 (FY 2020–21), the Government of India has implemented a new voluntary tax regime for the Hindu undivided family (HUF). As a result, Section 115BAC of the Income Tax Act, 1961 was enacted, which provided for lower tax rates for individual taxpayers and HUF waived certain tax deductions or exemptions. However, there is an option for individual taxpayers to file their income tax returns under the old tax system or the new tax regime in the current financial year (2022–2023).

Read – 2023 Budget Highlights

What is the new income tax rate under the New Tax Regime?

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

Additionally, Finance Minister Nirmala Sitharaman announced a reduction in the top surcharge from 37% to 25% in the new tax regime.

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

With the announcement of the new tax slab, a lot of relief has been given to salaried employees.

Categories: Optical Illusion
Source: pagasa.edu.vn