Income Tax New Slab Rates.
New Tax Regime Income Tax Slab Rates
The first and foremost update in the Income Tax regime through the Union Budget, 2023 is the change in the Income Tax Slab Rates under the New Tax Regime. On the other hand, there are no changes in the income tax slab rates under the Old Tax Regime.
| Slab | Old Tax Regime Slab Rates for FY 22-23 (AY 23-24) | New Tax Regime Slab Rates | |||
| Resident Individuals & HUF < 60 years of age & NRIs | Resident Individuals & HUF > 60 to < 80 years | Resident Individuals & HUF > 80 years | Before Budget 2023 (until 31st March 2023) | After Budget 2023 (From 1st April 2023) | |
| ₹0-₹2,50,000 | NIL | NIL | NIL | NIL | NIL |
| ₹2,50,000 -₹3,00,000 | 5% | NIL | NIL | 5% | NIL |
| ₹3,00,000-₹5,00,000 | 5% | 5% (tax rebate u/s 87A is available) | NIL | 5% | 5% |
| ₹5,00,000-₹6,00,000 | 20% | 20% | 20% | 10% | 5% |
| ₹6,00,000-₹7,50,000 | 20% | 20% | 20% | 10% | 10% |
| ₹7,50,000-₹9,00,000 | 20% | 20% | 20% | 15% | 10% |
| ₹9,00,000-₹10,00,000 | 20% | 20% | 20% | 15% | 15% |
| ₹10,00,000-₹12,00,000 | 30% | 30% | 30% | 20% | 15% |
| ₹12,00,000-₹12,50,000 | 30% | 30% | 30% | 20% | 20% |
| ₹12,50,000-₹15,00,000 | 30% | 30% | 30% | 25% | 20% |
| >₹15,00,000 | 30% | 30% | 30% | 30% | 30% |
The reason for making changes in the income tax slab rates is that there were many slab rates under the new tax regime. Due to these various tax slab rates, there used to be a lot of confusion in the minds of individuals. Therefore, to curb this confusion and increase the number of filers under the new tax regime, the government has put up changes in this tax regime.
Default Tax Regime
Apart from the changes in the income tax slab rate, the new tax regime will now be the default tax regime while filing the Income Tax Return. If the individual wishes to file his ITR under the old tax regime, then he can simply select the option and file the ITR.
Standard Deduction
Now even under the new tax regime, the standard deduction of Rs. 50,000 will be available to the ITR filers. Please note that earlier the standard deduction was available only under the old tax regime.
Tax Rebate
In addition to the above, the government seeks to increase the tax rebate limit of Rs. 5 lacs to Rs. 7 lacs under the new tax regime. In other words, if the individual having taxable income below Rs. 7 lacs opts for the new tax regime, then he will have zero tax. Whereas, under the old tax regime, the tax rebate limit is still Rs. 5 lacs.
Surcharge Limit
Fifthly, the highest surcharge limit under the new tax regime will now be 25% from 37%. Conversely, the highest surcharge limit under the old regime remains the same i.e., 37%.
OLD REGIME
| INCOME | RATE |
| Less than Rs. 50 lacs | 0% |
| Rs. 50 lacs – Rs. 1 crore | 10% |
| Rs. 1 crore Rs. 2 crores | 15% |
| Rs. 2 crores – Rs. 5 crores | 25% |
| More than Rs. 5 crores | 37% |
New REGIME
| INCOME | RATE |
| Less than Rs. 50 lacs | 0% |
| Rs. 50 lacs – Rs. 1 crore | 10% |
| Rs. 1 crore Rs. 2 crores | 15% |
| Rs. 2 crores – Rs. 5 crores | 25% |
| More than Rs. 5 crores | 25% |