During her sixth consecutive budget presentation on Thursday, Union Finance Minister Nirmala Sitharaman stated that there would be no adjustments to the income tax rates. The announcement is in line with expectations because previous interim budgets did not take significant adjustments into account.
“I propose to retain the same tax rates for direct and indirect taxes including import duties,” Sitharaman said.
Sitharaman made a number of modifications to the personal income tax targeted at the middle class announcements in the most recent Budget 2023. Although taxpayers could choose to stick with the previous tax system, the government had stated that the new system would be the default.
The rebate limit was raised from Rs 5 lakh to Rs 7 lakh in the new tax regime. Thus, those selecting the new tax regime would not be required to pay any tax up to an annual income of Rs 7 lakh.
NEW INCOME TAX REGIME SLABS:
Income up to Rs 3 lakh – No tax
Income between Rs 3–6 lakh – 5% tax (tax rebate under Section 87A available)
Income between Rs 6–9 lakh – 10% tax (tax rebate under Section 87A up to Rs 7 lakh available)
Income between Rs 9–12 lakh – 15% tax
Income between Rs 12–15 lakh – 20% tax
Income of Rs 15 lakh and above will be taxed at 30 per cent.
OLD INCOME TAX SLABS:
Income up to Rs 2.5 lakh – No tax
Income between Rs 2.5 to Rs 5 lakh – 5% tax
Income between Rs 5 lakh to Rs 10 lakh – 20% tax
Income above Rs 10 lakh – 30% tax
