Funds 2023: New revenue tax slabs have been introduced

New Delhi:

Finance Minister Nirmala Sitharaman has elevated the rebate restrict for particular person taxpayers from Rs 5 lakh to Rs 7 lakh a 12 months.

“..Presently, these with revenue as much as Rs 5 lakh don’t pay any revenue tax in each outdated and new tax regimes. I suggest to extend the rebate restrict to Rs 7 lakh within the new tax regime. Thus, individuals within the new tax regime, with revenue as much as Rs 7 lakh won’t need to pay any tax,” Ms Sitharaman stated whereas presenting Funds 2023 in parliament right this moment.

She additionally introduced new tax slabs and scrapped the outdated twin-structure system that was unboxed in 2020, which taxed residents below 25 per cent with out exemptions and 30 per cent with exemptions allowed.

The brand new slabs are:

Rs 0-3 lakh – no tax

Rs 3-6 lakh – taxed at 5 per cent

Rs 6-9 lakh – taxed at 10 per cent

Rs 9-12 lakh – taxed at 15 per cent

Rs 12-15 lakh- taxed at 20 per cent

Above Rs 15 lakh – taxed at 30 per cent

“I had launched, within the 12 months 2020, the brand new private revenue tax regime with six revenue slabs ranging from Rs 2.5 lakh. I suggest to alter the tax construction on this regime by lowering the variety of slabs to 5 and rising the tax exemption restrict to Rs 3 lakh,” Ms Sitharaman stated.

In Funds 2020, the Finance Minister had given an choice to particular person taxpayers to both proceed within the outdated charge, below which they might nonetheless declare tax exemption, or go for the decreased new charge however with no scope for claiming exemptions.

The outdated tax regime had 30 per cent tax charge for these whose revenue was Rs 15 lakh a 12 months, however they might declare exemptions.

Those that opted for the brand new regime first introduced in 2020 and whose revenue was over Rs 15 lakh have been taxed at 25 per cent, however they might not declare exemptions.