It is the big income tax bonanza in the Union Budget 2023 presented by finance minister Nirmala Sitharaman. The new tax regime has received a great boost and is expected to be accepted by more taxpayers while filing returns for F.Y. 2023-24.
New tax slabs under the new tax regime:
|Income Range||Tax Rate||Tax Liability|
|₹ 0-3 lakh||Nil||₹ 0|
|₹ 3-6 lakh||5 Percent||₹ 5% of (Total Income - 300000)|
|₹ 6-9 lakh||10 Percent||₹15000+10% of (Total Income - 600000)|
|₹ 9-12 lakh||15 Percent||₹45000+15% of (Total Income - 900000)|
|₹ 12-15 lakh||20 Percent||₹90000+20% of (Total Income - 1200000)|
|Above ₹ 15 lakh||30 Percent||₹150000+30% of (Total Income - 1500000)|
While presenting Budget 2023, Smt. Nirmala Sitharaman quoted that “An individual with an annual income of ₹9 lakhs will be required to pay only ₹45,000/-.This is only 5 percent of his or her income. It is a reduction of 25 percent on what he or she is required to pay now, i.e., ₹60,000/-. Similarly, an individual with an income of ₹15 lakhs would be required to pay only ₹1.5lakhs or 10 percent of his or her income, a reduction of 20 percent from the existing liability of ₹1,87,500”.