What Budget document tells us about new Income Tax slab

The new tax regime, introduced in budget 2020, is the now the default regime to pay tax. The old one, however, has not been discontinued, and citizens can continue to pay tax under either, based on their choice.

Updated on: Feb 1, 2023, 19:53:23 IST

By HT News Desk, New Delhi

Prefer HTon Google

Share via

Copy link

Finance minister Nirmala Sitharaman on Wednesday made as many as five announcements related to personal income tax, as she presented Union Budget for the financial year 2023-24. This was her fifth consecutive Budget, and also the last full one of the Modi government before the next Lok Sabha polls, which will take place in April-May next year.

Changes have been made only to the new tax regime, while the old one has been left untouched (Representational Image)

Click here for full Budget 2023 coverage

One of the announcements made by Sitharaman on personal income tax – there was none in this field in last year's Budget – was on the change in slabs under the new tax regime.

Click here for live updates on Budget 2023

Here's what the Budget document said on the new slabs:

A look at the income tax slabs under the new versus old tax regime.

“The second proposal relates to middle-class individuals. I had introduced, in the year 2020, the new personal income tax regime with six income slabs starting from ₹2.5 lakh. I propose to change the tax structure in this regime by reducing the number of slabs to five and increasing the tax exemption limit to ₹3 lakh,” said Sitharaman in her speech.

Additionally, the new regime will also be the default regime now. The old one, however, has not been discontinued; this, therefore, means citizens can continue to pay tax under either, based on their choice.

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Stay updated with the latest Business News on Petrol Price, Gold Rate, Silver Rates, Diesel Prices along with Income Tax Calculator