India Budget 2023: No income tax up to 7 lakh rupee, revised tax slabs for new regime
There will be no income tax up to 7 lakh rupee in the new tax regime, announced Union finance minister Nirmala Sitharaman in the Union Budget 2023 on Wednesday. "The government proposes to increase income tax rebate limit from 5 lakh rupee to 7 lakh rupee in the new tax regime," said Sitharaman.
The finance minister also proposed to hike tax exemption on leave encashment on the retirement of non-government salaried employees to 25 lakh rupee from 3 lakh rupee.
Revised tax slabs under new tax regime:
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Income of 0-3 lakh rupee - Nil.
Income above 3 lakh rupee and up to 5 lakh rupee will be taxed at 5 per cent.
Income of above 6 lakh rupee and up to 9 lakh rupee will be taxed at 10 per cent the under new regime.
Income more than 12 lakh rupee and up to 15 lakh rupee to be taxed at 20 per cent.
Income above 15 lakh rupee to be taxed at 30 per cent.
The new income tax regime will be the default tax regime while the citizens will have the option to be in the old regime as well, the finance minister announced.
Calculation: How much do you save?
An individual with 9 lakh rupee annual income will pay 45,000 tax which is 5 per cent of the salary - a reduction of 15,000 from the present 60,000.
Sitharaman's recent comments on knowing the "pressures of the middle class" had added to speculation she would put some money in the pockets of taxpayers.
The finance minister said India will focus on economic growth and job creation and cut down fiscal deficit. It was the government's last full budget in Parliament before the 2024 Lok Sabha election.
The aim is to have strong public finances and a robust financial sector for the benefit of all sections of society, she said.
The government will target a budget deficit of 5.9 per cent of GDP for 2023/24, Sitharaman said, compared to 6.4 per cent for the current fiscal year.
