New Income Tax Slabs For 2023-2024 Explained: Budget 2023 New Tax Regime Explainer
In the Budget 2023-24, the government has announced a major revamp in the income tax slab rates under the new income tax regime.
In a big relief for the salaried and middle-class taxpayers, Finance Minister Nirmala Sitharaman on Wednesday, February 1, 2023, announced various income tax changes in the last full budget of the Narendra Modi-led government before the 2024 Lok Sabha elections. With the new changes, the calculation for your income tax for FY 2023-24 will now change.
In the Union Budget 2023-24, the government has announced a major revamp in the income tax slab rates under the new income tax regime for FY 2023-24. As part of these changes, the basic exemption limit under the new income tax regime has been increased to ₹3 Lakh. Another major change announced by the Finance Minister is the increase in the income tax rebate limit for salaried and individual taxpayers under the new income tax regime to ₹7 Lakh from ₹5 Lakh.
Read on to know the revised income tax slabs for 2023-24 under the new income tax regime.
New Income Tax Slabs For FY 2023-24 After Budget 2023
To understand the changes in income tax slabs better, take a look at the income tax slabs under the new tax regime before Budget 2023-24.
In the Budget 2023, Finance Minister Nirmala Sitharaman revamped the new income tax regime and announced new income tax slabs for FY 2023-24. Now, the total number of income tax slabs under the new income tax regime has been reduced and the tax slabs have been revised as well. Additionally, the standard deduction of ₹50,000 has also been included in the new income tax regime. Moreover, the income tax rebate limit has been increased to ₹7 Lakh from ₹5 Lakh. This means that if a salaried taxpayer’s income for the financial year is up to ₹7 Lakh, he or she will not have to pay any income tax.
FM Nirmala Sitharaman also announced that the new income tax regime will now be the default regime. However, taxpayers will still have the option to choose the old income tax regime. She did not announce any income tax changes for the old tax regime, which offers tax exemptions and deductions on investments and expenses such as PPF, NPS, HRA, etc.
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