Finance Minister Nirmala Sitharaman announced that no income tax will be levied on those earning up to Rs 7 lakh annually. “There is no income tax for those earning up to Rs 7 lakh a year,” she said. It also proposed an increase in the exemption limit to an income of Rs 7 lakh.
Nirmala Sitharaman (2019-present) holds the record for the longest speech when she spoke for 2 hours 42 minutes while presenting the Union Budget 2020-21. The 5th budget is being presented by him in the Parliament on February 1, 2023.
By making the new income tax regime the default tax regime, citizens will have the option of using the old tax regime.
In the new tax regime, the peak surcharge has been reduced from 37 per cent to 25 per cent.
Individuals with an income of Rs 15.5 lakh crore or more will get a benefit of up to Rs 52,000.
A person with an income of Rs 9 lakh will have to pay only Rs 45000 as tax. A person with an income of Rs 15 lakh will have to pay only Rs 1.5 lakh
The number of slabs has been reduced to five, the tax exemption limit has been increased to three lakh rupees.
income tax slab under new tax regime
- 0-3 Lakh Zero
- 3-6 lakh 5%
- 6-9 lakhs 10%
- 9-12 lakh 15%
- 12-15 lakh 20%
- Above 15 lakhs 30%