Union Budget 2023-24 New Tax Slabs: Finance Minister Nirmala Sitharaman presented the Union Budget for the year 2023 on Wednesday, 1 Feb and unpacked the surprises for the salaried class.

Union Budget 2023-24 New Tax Slabs: Finance Minister Nirmala Sitharaman presented the Union Budget for the year 2023 on Wednesday, 1 Feb and unpacked the surprises for the salaried class. The FM tweaked the slabs to provide some relief to the middle class, "It is proposed to increase the rebate for the resident individual under the new regime so that they do not pay tax if their total income is up to ₹7 lakh", Sitharaman said. The announcement was then followed by a hooting by the members of the house. She further said under the new personal tax regime, the number of slabs would be reduced to five. "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", Sitharaman said. Until now, a 5 per cent tax is levied on total income between ₹2.5 lakh and ₹5 lakh, 10 per cent on ₹5 lakh to ₹7.5 lakh, 15 per cent on ₹7.5 lakh to ₹10 lakh, 20 per cent on ₹10 lakh to ₹12.5 lakh, 25 per cent on ₹12.5 lakh to ₹15 lakh, and 30 per cent on above ₹15 lakh. Check here all the updated tax slabs in the new and old tax regimes: Union Budget 2023: New Tax Slabs No tax would be levied for income up to ₹3 lakh Income between ₹3-6 lakh would be taxed at 5 per cent Income between ₹6-9 lakh would be taxed at 10 per cent Income between ₹9-12 lakh at 15 per cent Income between ₹12-15 lakh at 20 per cent Income of ₹15 lakh and above will be taxed at 30 per cent. Annual Income New Tax Regime 0-3 lacs 0% 3-6 lacs 5% 6-9 lacs 10% 9-12 lacs 15% 12-15 lacs 20% Above 15 lacs 30% Union Budget 2023: Old Tax Slabs Income up to ₹2.5 is exempt from taxation under the old tax regime. Income between ₹2.5 to ₹5 lakh is taxed at the rate of 5 per cent under the old tax regime. Personal income from ₹5 lakh to ₹7.5 lakh is taxed at a rate of 15 per cent under the old regime Income between ₹7.5 lakh to ₹10 lakh is taxed at a rate of 20 per cent in the old regime Under the old regime personal income above ₹10 lakh is taxed at a rate of 30 per cent. Tax Slabs Old Tax Regime New Tax Regime after 2020 Less than 2,5 lakh No tax levied No tax levied 2.5 lakh to 5 lakh 5% tax levied 5% tax levied 5 lakh to 7.5 lakh 15% tax levied 10% tax levied 7.5 lakh to 10 lakh 20% tax levied 15% tax levied 10 lakh to 12.5 lakh 30% tax levied 20% tax levied 12.5 lakh to 15 lakh 25% tax levied More than 15 lakh 30% tax levied The income tax slabs have not been changed since 2014. The basic personal tax exemption limit was last revised in 2014. FM Sitharaman introduced a new income tax regime while presenting the budget 2020. However, the new tax regime remains optional for taxpayers.

Union Budget 2023: New vs old tax regime; which one is better?

India's Union Finance Minister Nirmala Sitharaman presented the Union Budget 2023-24 on Wednesday. She kicked off her speech by saying that the "world has recognised India as a bright star" and added that the country is recording healthy economic growth despite global uncertainties. Sitharaman was presenting her fifth full Budget after she took over as Finance Minister in July 2019.

Economic growth

Sitharaman, the Union Minister of Finance and Corporate Affairs,&nbsp;said that the Indian economy is on the "right track and heading towards a bright future". India's growth at 7 per cent in the current fiscal is the highest among major economies, she said in her Budget speech. Indian economy has increased in size from being the 10th to 5th largest in last nine years, she said, stating that the per capita income has increased to Rs 1.97 lakh.

“Our focus on reforms and sound policies resulting in ‘Jan Bhagidari’ helped us in trying times, our rising global profile is due to several accomplishments,” she said.

Sitharaman also fixed the fiscal deficit for 2023-24 at 5.9 per cent. She reiterated that the fiscal deficit would be brought down to below 4.5 per cent by 2025-26 as declared earlier.

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/union-budget-2023-24-income-tax-rebate-extended-on-income-up-to-rs7-lakh-557818">Sitharaman's 5 announcements on personal income tax</a>

 
Income Tax

There was good news for taxpayers as Sitharaman announced that&nbsp;the tax rebate limit is being&nbsp;increased&nbsp;from Rs 5 lakh to Rs 7 lakh. A change in the number of Income Tax slabs was also announced. Government also proposed to reduce highest surcharge rate from 37 per cent to 25 per cent in the new tax regime.

"I introduced in 2020, the new personal income tax regime with six income slabs, starting from Rs 2.5 lakh. I propose to change the tax structure in this regime by reducing the number of slabs to 5 and increasing the tax exemption limit to Rs 3 lakh," she said.

An individual with income of Rs 15 lakh will have to pay Rs 1.5 lakh as tax, down from Rs 1.87 lakh. The new tax regime will now be the default tax regime, she further said.

Revised tax slabs under new tax regime:

— Income of Rs 0-3 lakh is nil.

— Income above Rs 3 lakh and up to Rs 5 lakh to be taxed at 5%&nbsp;

— Income of above Rs 6 lakh and up to Rs 9 lakh to be taxed at 10%&nbsp;

— Income above Rs 12 lakh and up to Rs 15 lakh to be taxed at 20%&nbsp;

— Income above Rs 15 lakh to be taxed at Rs 30%

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Watch:&nbsp;Indian Finance Minister Nirmala Sitharaman presents Union Budget

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Other proposals in the Budget

The Centre launched a Rs 15,000 crore development fund for the tribal and marginalised sections, the finance minister announced in her speech. "Pradhan Mantri PVTG (Particularly Vulnerable Tribal Groups) Development Mission is being launched to improve the socio-economic condition of the vulnerable groups. A total of Rs 15,000 crore will be made available to implement the scheme in the next three years," the FM said.

To promote exports and enhance domestic manufacturing, Sitharaman announced a reduction in customs duty rates on various commodities and products. A reduction in the number of customs duty rates on goods except for textiles, from 21 to 13, was also proposed. The government will also continue concessional duties on lithium ions cells for batteries for one more year.

Regarding India's carbon emissions, Sitharaman announced that the country is swiftly moving towards reaching its Net-Zero target&nbsp;by 2070. The National Green Hydrogen Mission, which has an allocation of Rs 19,700 crore, will facilitate the transition of the economy into a low-carbon intensity and green economy.

The government will revive up to&nbsp;50 additional airports, heliports, water aerodromes and advance landing grounds to improve regional air connectivity in the country.

Sitharaman proposed to use PAN card as a common identifier for all digital systems at government agencies. The move is expected to simplify the KYC process and make it easier for the Income Tax Department and other government agencies to manage documents.&nbsp;

On foodgrains for poor, Sitharaman said that the entire expenditure of about Rs 2 lakh crore under the PM Garib Kalyan Anna Yojana is being borne by the Central government. Under it, free foodgrains are being supplied to all Antyodaya and priority households for a year.

In a bid to support and encourage agri-startups by young entrepreneurs, the FM announced the setting up of the Agriculture Accelerator Fund. The government proposes to increase the agricultural credit target to Rs 20 lakh crore with a focus on animal husbandry, dairy and fisheries, she told the Parliament.&nbsp;

A national cooperative database is being created to map cooperative societies. The move would help in better implementation of the proposed national policy on cooperatives. As per the data published by the NCUI, there are about 8.6 lakh cooperatives in the country, out of which active primary agricultural cooperatives (PACs) are about 63,000.

She also announced a 66 per cent hike in the Pradhan Mantri Aawas Yojana (PMAY) outlay to Rs 79,000 crore. She said states and cities will be encouraged to take up urban planning.

The Centre would provide Rs 5,300 crore assistance for Upper Bhadra project in poll-bound Karnataka. In her budget speech, Sitharaman said, "In the drought prone central regions of Karnataka, a central assistance of Rs 5,300 crore will be given for the Upper Bhadra Project."&nbsp;

(With inputs from agencies)

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India's Union Finance Minister Nirmala Sitharaman presented the Union Budget 2023-24 on Wednesday. She kicked off her speech by saying that the "world has recognised India as a bright star" and added that the country is recording healthy economic growth despite global uncertainties.

India's Union Finance Minister Nirmala Sitharaman presented the Union Budget 2023-24 on Wednesday. She kicked off her speech by saying that the "world has recognised India as a bright star" and added that the country is recording healthy economic growth despite global uncertainties. Sitharaman was presenting her fifth full Budget after she took over as Finance Minister in July 2019. Economic growth Sitharaman, the Union Minister of Finance and Corporate Affairs, said that the Indian economy is on the "right track and heading towards a bright future". India's growth at 7 per cent in the current fiscal is the highest among major economies, she said in her Budget speech. Indian economy has increased in size from being the 10th to 5th largest in last nine years, she said, stating that the per capita income has increased to Rs 1.97 lakh. “Our focus on reforms and sound policies resulting in ‘Jan Bhagidari’ helped us in trying times, our rising global profile is due to several accomplishments,” she said. Sitharaman also fixed the fiscal deficit for 2023-24 at 5.9 per cent. She reiterated that the fiscal deficit would be brought down to below 4.5 per cent by 2025-26 as declared earlier. Also Read | Sitharaman's 5 announcements on personal income tax Income Tax There was good news for taxpayers as Sitharaman announced that the tax rebate limit is being increased from Rs 5 lakh to Rs 7 lakh. A change in the number of Income Tax slabs was also announced. Government also proposed to reduce highest surcharge rate from 37 per cent to 25 per cent in the new tax regime. "I introduced in 2020, the new personal income tax regime with six income slabs, starting from Rs 2.5 lakh. I propose to change the tax structure in this regime by reducing the number of slabs to 5 and increasing the tax exemption limit to Rs 3 lakh," she said. An individual with income of Rs 15 lakh will have to pay Rs 1.5 lakh as tax, down from Rs 1.87 lakh. The new tax regime will now be the default tax regime, she further said. Revised tax slabs under new tax regime: — Income of Rs 0-3 lakh is nil. — Income above Rs 3 lakh and up to Rs 5 lakh to be taxed at 5% — Income of above Rs 6 lakh and up to Rs 9 lakh to be taxed at 10% — Income above Rs 12 lakh and up to Rs 15 lakh to be taxed at 20% — Income above Rs 15 lakh to be taxed at Rs 30% Watch: Indian Finance Minister Nirmala Sitharaman presents Union Budget × Other proposals in the Budget The Centre launched a Rs 15,000 crore development fund for the tribal and marginalised sections, the finance minister announced in her speech. "Pradhan Mantri PVTG (Particularly Vulnerable Tribal Groups) Development Mission is being launched to improve the socio-economic condition of the vulnerable groups. A total of Rs 15,000 crore will be made available to implement the scheme in the next three years," the FM said. To promote exports and enhance domestic manufacturing, Sitharaman announced a reduction in customs duty rates on various commodities and products. A reduction in the number of customs duty rates on goods except for textiles, from 21 to 13, was also proposed. The government will also continue concessional duties on lithium ions cells for batteries for one more year. Regarding India's carbon emissions, Sitharaman announced that the country is swiftly moving towards reaching its Net-Zero target by 2070. The National Green Hydrogen Mission, which has an allocation of Rs 19,700 crore, will facilitate the transition of the economy into a low-carbon intensity and green economy. The government will revive up to 50 additional airports, heliports, water aerodromes and advance landing grounds to improve regional air connectivity in the country. Sitharaman proposed to use PAN card as a common identifier for all digital systems at government agencies. The move is expected to simplify the KYC process and make it easier for the Income Tax Department and other government agencies to manage documents. On foodgrains for poor, Sitharaman said that the entire expenditure of about Rs 2 lakh crore under the PM Garib Kalyan Anna Yojana is being borne by the Central government. Under it, free foodgrains are being supplied to all Antyodaya and priority households for a year. In a bid to support and encourage agri-startups by young entrepreneurs, the FM announced the setting up of the Agriculture Accelerator Fund. The government proposes to increase the agricultural credit target to Rs 20 lakh crore with a focus on animal husbandry, dairy and fisheries, she told the Parliament. A national cooperative database is being created to map cooperative societies. The move would help in better implementation of the proposed national policy on cooperatives. As per the data published by the NCUI, there are about 8.6 lakh cooperatives in the country, out of which active primary agricultural cooperatives (PACs) are about 63,000. She also announced a 66 per cent hike in the Pradhan Mantri Aawas Yojana (PMAY) outlay to Rs 79,000 crore. She said states and cities will be encouraged to take up urban planning. The Centre would provide Rs 5,300 crore assistance for Upper Bhadra project in poll-bound Karnataka. In her budget speech, Sitharaman said, "In the drought prone central regions of Karnataka, a central assistance of Rs 5,300 crore will be given for the Upper Bhadra Project." (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Indian Union Budget 2023-24: Key highlights

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Union Budget 2023: New vs old tax regime; which one is better?

Indian Union Budget 2023-24: Key highlights