Finance Minsiter, Nirmala Sitaraman announced the Union Budget 2023, increasing the income level up to Rs 7 lakh a year in the new tax regime. Till now, it was Rs 5 lakh.
Also, there's an increase in tax exemption on leave encashment on retirement of non-government salaried employees to Rs 25 lakh from Rs 3 lakh.
Look at the revised tax slabs
- Income from Rs 3 lakh - Rs 6 lakh will be taxed at 5%
- Rs 6 lakh to Rs 9 lakh will attract 10%
- Rs 9 lakh to 12 lakh, will be taxed at 15 %
- Rs 12 to Rs 15 lakh, 20%
- Above Rs 15 lakh, 30%
The old regime will only be available on request now to the citizens, while the new regime will be considered the default system for everyone.
Now, salaried people with income of Rs 15.5 lakh or more can deduct Rs 52,500 as Standard deduction while calculating their taxable income.