[Latest] What is the New Income Tax Slab Rate 2023?

New Income Tax Slab 2023: Finance Minister Nirmala Sitharaman is presenting the Union Budget 2023 in Parliament today, February 1st. During the session, Finance Minister announced the new Tax regime for the financial year 2023-24. 

According to the new regime, the Income Tax rebate has been extended to Rs 7 lakhs. Earlier, it was Rs 5 lakhs. 

Beginning on April 1, 2020 (FY 2020–21), the Government of India implemented a new voluntary tax rate regime for the Hindu undivided family (HUF). As a result, Section 115BAC of the Income Tax Act of 1961 was enacted, which specified lower tax rates for individual taxpayers and HUFs who forego certain tax deductions or exemptions. However, there was an option given to individual taxpayers to file their income tax returns either under the old tax system or the new tax regime in the current fiscal year (2022–2023). 

Read - Budget 2023 Highlights

What are the New Income Tax Slab Rates under the New Tax Regime?

Below is a table showing the tax slabs for salaried individuals under the new tax regime of 2023:

Also, Financial Minister Nirmala Sitharaman has announced to reduce the highest surcharge rate from 37 percent to 25 percent in the new tax regime. 

Under the old tax regime, income up to Rs 2.5 lakh was exempt from personal income tax. Tax rates range from 5% for income between Rs 2.5 lakh and Rs 5 lakh to 20% for income between Rs 5 lakh and Rs 10 lakh. 30% of income over Rs 10 lakh is taxed.

With the announcement of the new tax slab, salaried individuals have been given a great relief.