Budget 2023: Biggest Change in Income Tax Slabs for Tax Payers
01 February 2023 by Gagan Modi
Here are key highlights of Budget 2023 with Income Tax Rebates and Tax Exemptions as explained
Budget 2023: Income Tax Slabs Increased
Income Tax Rebate Limit increased from Rs 5 Lakh to 7 Lakh in all new Budget for FY 2023-24 marking as biggest highlight
With New Income Tax Slabs - it brings a cheer to Salaried Class, as if one makes investment of Rs 1.5 Lakh u/s 80C it means - he wont have to pay any Income Tax on amount upto 7 Lakh
Here are New Slabs for Income Tax in Budget 2023-24
| Income Slab | Tax |
| 0 to 3 Lakh | NIL |
| 3 Lakh to 6 Lakh | 5% |
| 6 Lakh to 9 Lakh | 10% |
| 9 Lakh to 12 Lakh | 15% |
| 12 Lakh to 15 Lakh | 20% |
| Above 15 Lakh | 30% |
- For Super Rich, the highest effective tax rate too been reduced from 42.7 percent to 39%.
making a Significant change in Budget 2023
So it goes on like this for Tax Payers
| Source of income (FY 2023-24) | Income (Rs) |
| Gross total income | 7 Lakh |
| Less: Deduction under section 80C | 1.5 Lakh |
| Total income | 5.5 Lakh |
| Income-tax (@ 5% from Rs 3 to 5.5 lakh) | 12,500 |
| Less: Rebate u/s 87A | 12,500 |
| Tax payable | Nil |
Tax Liability in Budget 2023 - 24
- So any Salaried whose Monthly Salary is Rs 58,500 will essentially not be required to pay any Income Tax
- For Someone whose Monthly Salary is Rs 1 Lakh per month will too just be required to pay in just Rs 5500 pm as Rs 55,000 Annual Tax payment as Income tax - marking a significant reduction in Income Tax liabilities in New Financial Year
- For someone whose Salary is Rs 1.25 Lakh per Month at Rs 15 Lakh on annual basis would just be required to contribute in Rs 12,500 per month as Rs 1.5 Lakh tax
- For someone whose Salary is Rs 2 Lakh per month will be required to pay in Rs 33,000 per month as Tax Liability