Budget 2023: Big relief to taxpayers! Income tax limit increased

Finance Minister Nirmala Sitharaman changed this on Wednesday Income Tax Slab Rates To provide some relief to the middle class by declaring no tax on annual income up to 7 lakh under the new tax regime.

he also allowed 50,000 standard deduction to taxpayers under the new regime, where assessees cannot claim deduction or exemption on their investments.

Income exemption limit increased from 7 lakhs 5 lakh in the new tax regime,” announced Finance Minister Nirmala Sitharaman.

“It is heartening to see that the new income tax slab Giving a lot of relief to the low income group and the great Indian middle class. Raising the bar for income tax from 0 5 lakhs onwards Lowering taxation for those earning between Rs 7 lakh and Rs. 6 – 9 Lakh and 12-15 lakhs would certainly leave more disposable income for many Indians who were reeling under the effects of inflation. This is likely to lead to massive consumer spending and a positive impact on the economy. Moreover, even the higher income groups will enjoy a lower tax rate of 39% instead of 42.7%. We can already see its positive impact on the stock markets with the Sensex rallying over 750 points soon after the budget was announced,” said Nikhil Agarwal, Founder & CEO, Gripp.

Tax exemption limit increased from 5 lakh to 7 lakh

0-3 Lakh Zero

3-6 lakh 5%

6-9 lakhs 10%

9-12 lakh 15%

12-15 lakh 20%

Above 15 lakhs 30%

Income tax slabs were not changed since 2014. The basic personal tax exemption limit was last revised in 2014.

Dressed in a red sari with black and gold border, Sitharaman continued the tradition she set in 2019, keeping the budget speech in the ‘bahi-khata’ she used after leaving the briefcase. He carried a digital tablet in a red ledger style pouch.