Budget 2023: Income Tax Slabs Changed, Know Your Tax Liability Under New Regime

Finance Minister Nirmala Sitharaman during her budget speech on February 1 announced tax cuts and changes in income tax slabs under the new regime. This has brought relief to the common man and it would increase the disposable income in the hands of the taxpayers. But, as per the revised income tax slabs, how tax much would you pay under the new regime? If you are worried about this, News18 has calculated what amount of tax you need to pay under the new tax regime. Read further to know more.

The Finance Minister in her Budget speech on February 1 proposed to increase the income tax rebate limit to Rs 7 lakh from the current Rs 5 lakh. So, if your annual income is upto Rs 7 lakh and you opt for the new tax regime then you would not pay any taxes. The tax slabs have also been revised bringing relief to the taxpayers.

The exemption limit under the new regime has been enhanced to Rs 3 lakh from the existing Rs 2.5 lakh. Here are the revised tax slabs under the new regime as proposed in the Union Budget 2023:

Up to Rs 3 lakh – 0%

Between Rs 3 and 6 lakh – 5%

Between Rs 6 and 9 lakh – 10%

Between Rs 9 lakh and Rs 12 lakh – 15%

Between Rs 12 lakh and Rs 15 lakh – 20%

Above Rs 15 lakh above – 30%

In her budget speech, the Finance Minister also proposed to reduce the highest surcharge rate from 37% to 25% under the new tax regime. This proposal under the union budget will reduce the maximum tax rate to 39% from the current 42.74%.

Income Tax On Annual Income Upto Rs 7 Lakh, Rs 10 Lakh and Rs 15 lakh

Under the new tax regime an individual earning upto Rs 3 lakh per annum won’t pay any tax. Under the new tax regime, as per the proposed changes in the Budget 2023, the total income tax amount will be significantly reduced. If you have annual income upto Rs 7 lakh, under the existing new regime you have to pay Rs 33,800 towards Income Tax. However, as per the proposed changes under the Budget 2023 your tax liability will be nil.

The total tax liability for those having an annual income of Rs 10 lakh currently stands at Rs 78,000. But, as per the revised tax slabs and the enhanced rebate limit under the new regime the total tax payable will be 54,600. Similarly the total tax payable for an individual with an annual income of Rs 15 lakh is currently Rs 1,95,000 under the new regime. As per the revised tax slabs the total income tax payable will be reduced to Rs 1,45,600.

Read all the Latest Business News here