Budget 2023 Income Tax Changes: Know Details Here!

Union Finance Minister Nirmala Sitharaman on Wednesday announced a change in income tax slabs, up to ₹7 lakh rebate under the new income tax regime.

Here are the 5 income tax rule changes announced in Budget 2023

Tax rebate limit raised to ₹7 lakh from ₹5 lakh. This change is only for those who choose the New Tax Regime.

Changes in Income Tax slabs The new tax rates are 0-3 lakh - nil 3-6 lakh - 5% 6-9 lakh- 10% 9-12 lakh - 15% 12-15 lakh - 20% above 15 lakh- 30% The new system will decrease the six income categories to five.

For pensioners, the finance minister announced extending the benefit of the standard deduction to the new tax regime. Each salaried person with an income of ₹15.5 lakh or more will benefit by ₹52,500.

The highest surcharge levied under personal income tax has been reduced significantly from 37% to 25% in the new tax regime.

Budget 2023 has proposed increasing the limit of tax exemption on leave encashment on the retirement of non-government salaried employees from Rs 3 lakh to Rs 25 lakh.

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