Union Budget 2023 - New Income Tax Slab and rates

 The Finance Minister Nirmala Sitharaman in her speech announced a rebate in the income tax limit of 7 lacks in the new tax regime. She also reduced the number of slabs to 5, which will be:

• 0-3 lakh-        nil
• 3-6 lakh -       5%
• 6-9 lakh -      10%
• 9-12 lakh-     15%
• 12-15 lakh -   20%
• Above 15 lakh - 30%

For big earners, the highest effective tax rate has been reduced from 42.7 percent to 39%. The FM left LTCG unchanged, cheering the bourses.

•  An individual with an income of Rs 15 lakh will have to pay Rs 1.5 lakh tax down from Rs 1.87 lakh under the new tax structure.
• The government has proposed to reduce the highest surcharge rate from 37 percent to 25 percent in the new tax regime.
• The government has made the new tax structure as default tax scheme.