During the Union Budget speech on February 1, Union Finance Minister Nirmala Sitharaman announced changes in the income tax slabs
Here are the income tax rule changes announced by FM Sitharaman in Budget 2023
Centre proposed to increase the rebate limit to ₹7 lakh from the previous ₹5 lakh in the new tax regime
The number of slabs in the new tax regime will decrease to 5 from 6
The new tax rates are 0 to ₹3L - nil, ₹3L to 6L - 5%, ₹6L to 9L - 10%, ₹9L to 12L - 15%, ₹12L to 15L - 20% and above ₹15L - 30%
The standard deduction of ₹50,000 has now been extended to include the salaried class and pensioners
An individual with ₹9 Lakh annual income will now pay ₹45,000 tax which is 5% of the salary
Each salaried person with an income of ₹15.5 lakh or more will thus stand to benefit by ₹52,500
The maximum tax rate was lowered to 39% due to a reduction in the highest surcharge rate in the new tax system from 37% to 25%
The threshold for non-government salaried employees' tax exemption on leave encashment upon retirement would be raised from ₹3 lakh to ₹25 lakh