Budget 2023: Old vs new current income tax slabs

The Income Tax Rebate is the one aspect of the budget that the salaried class looks forward to. The fact that FM Sitharaman did not announce any changes to the income tax rates for 2022–2023 was a major letdown for the salaried class. Since 2014, there has not been a modification to the income tax slabs. The standard personal tax exemption threshold last underwent an update in 2014. During the presentation of the 2020 budget, FM Sitharaman unveiled a new tax structure. The new tax system is still a choice for taxpayers, though.

On 1 February, Union Budget will be presented by Finance Minister Nirmala Sitharaman and the budget speech is scheduled to start at 11 am.

New Tax Slabs under New Regime: Budget 2023

1) Income up to Rs. 3 Lakh is exempt from being taxable under the new regime.

2) Income between Rs. 3 to Rs. 6 lakh is taxed @ 5 per cent under the new regime.

3) Personal income from Rs. 6 lakh to Rs. 9 lakh is taxed @ 10 per cent under the new regime

There are three slabs above Rs. 10 lakh

4) Personal income between Rs. 9 lakh and Rs. 12 lakh is taxed @ 15 per cent under the new regime.

5) Income from Rs. 12 lakh to Rs. 15 lakh is taxed @ 20 per cent

6) Income above Rs. 15 lakh is taxed @ 30 per cent.

Old tax slabs under New Regime

1) Income up to Rs. 2.5 Lakh is exempt from being taxable under the new regime.

2) Income between Rs. 2.5 to Rs. 5 lakh is taxed @ 5 per cent under the new regime.

3) Personal income from Rs. 5 lakh to Rs. 7.5 lakh is taxed @ 10 per cent under the new regime

4) Personal income between Rs. 7.5 lakh and Rs. 10 lakh is taxed @ 15 per cent under the new regime.

5) Personal income between Rs. 10 lakh and Rs. 12.5 lakh is taxed @ 20 per cent under the new regime.

6) Personal income between Rs. 12.5 lakh and Rs. 15 lakh is taxed @ 25 per cent under the new regime.

7) Income above Rs. 15 lakh is taxed @ 30 per cent.

Old Regime to Continue as it is

1) Income up to Rs. 2.5 is exempt from taxation.

2) Income between Rs. 2.5 to Rs. 5 lakh is taxed at the rate of 5 per cent.

3) Income between Rs. 5 to Rs. 10 lakh is taxed at the rate of 20 per cent.

4) Income above Rs. 10 lakh is taxed @ 30 per cent.

In addition to above Taxpayer can take benefit of Deductions u/s 80C, 80D, House Rent Allowance etc. under old Tax Regime.

Also, Standard Deduction is available to the Salaried class in both Tax Regimes.