Indian Budget: Relief as no tax for income up to ₹7 lakh in new tax regime


Finance Minister Nirmala Sitharaman on Wednesday announced in the Indian budget new tax slabs for 2023-24, under which no tax would be payable for income up to ₹7 lakh per annum under the new income tax regime.

“Currently, those with an income of up to ₹5 lakh don’t pay any income tax. I proposed to increase the tax rebate limit to ₹7 lakh in the new tax regime,” Sitharaman said while announcing the new tax slabs in her speech while presenting the Union Budget for 2023-24.

A tax of 5% will be levied on total income between ₹3 lakh and ₹6 lakh, 10% on income between ₹6 lakh to ₹9 lakh, and 15% on income between ₹9 lakh and ₹12 lakh. It will be 20% on income between ₹12-15 lakh and 30% on income above ₹15 lakh.

Suman Chowdhury, Executive Director & Chief Analytical Officer, Acuite Ratings & Research said, “The rationalization of the personal income tax structure is expected to lead to two things (i) raise disposable incomes for the middle class and particularly younger taxpayers (ii) transition the taxpayers to the new tax regime with minimal exemptions and lower and simpler tax slabs. This is expected to give a moderate boost to domestic consumption.”

S. Ranganathan, Head of Research at LKP Securities said the Budget has put more money in the hands of the people through relief from Income Tax which to our mind is a very positive step.

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