Union Finance Minister Nirmala Sitharaman introduces the budget for the fiscal year 2023-24. One of the main highlights of this year’s budget is the new income tax slab; Nirmala Sitharaman announced that the government proposes to increase the income tax rebate limit from Rs. 5 lakhs to Rs.7 lakhs in the new tax regime. Here it should be noted that the Rs. 7 lakh slab will be applicable to the new income tax regime only.
Nirmala Sitharaman proposed changing the tax structure from six slabs to five slabs.
The new tax rates are:
Rs 0-3 lakh – Nil
Rs 3-6 lakh – 5 percent
Rs 6-9 lakh – 10 percent
Rs 9-12 lakh – 15 percent
Rs 12-15 lakh – 20 percent
Rs 15 lakh – 30 percent
Sitharaman has also proposed the new income tax regime as the default tax regime. However, citizens will continue to have the option to avail the benefit of the old tax system.
