5-Point News: What are the income tax rates in the new tax system...

Union Finance Minister Nirmala Sitharaman has changed the slabs of the New Tax Regime in Budget 2023, i.e. the general budget for the financial year 2023-24, which will be implemented from next year. Let us know, what are the new slabs and rates of tax.

Know, new slabs and rates of income tax...

So far, under Section 87A of the Income Tax Act, no income tax is levied if the income is less than Rs 5 lakh annually, but the limit of this tax-free income has now been increased to Rs 7 lakh annually.

Apart from this, the limit of absolutely tax-free income has also been increased from Rs 2.5 lakh to Rs 3 lakh for those opting for the new tax regime, that is, no income tax will have to be paid on the first Rs 3 lakh income even if there is a taxable income.

Income tax slabs have also been changed from Rs 2.5-2.5 lakh to Rs 3-3 lakh, after the first Rs 3 lakh, that is, 5% income tax will have to be paid on income from Rs 3 to 6 lakh.

Income tax will be charged at 10% on income between Rs 6 to 9 lakh, and 15% on income between Rs 9 to 12 lakh.

Taxpayer, that is, the taxpayer will have to pay 20 percent income tax on income between Rs 12 to 15 lakh, and 30 percent income tax will have to be paid on income above Rs 15 lakh as before.