There have been several changes introduced in the Budget delivered by Union Finance Minister Nirmala Sitaraman on 1st February 2023. The tax slabs for the purpose of income tax has been revised under the budget.
The tax on income from 0 to Rs. 03 lakh will be excluded, that is it will be charged at Nil. The tax on income above Rs 03 lakh and up to Rs 06 lakh will be taxed at 5 per cent and the tax on income above Rs. 06 lakh and up to Rs. 09 lakh will be taxed at 10 per cent and the tax on income above Rs. 12 lakh and up to Rs. 15 lakh will be taxed at 20 per cent and the tax on income above Rs. 15 lakh will we taxed at 30 per cent.
Along with the new tax slabs, the rebate amount has been increased from 05 lakh to 07 lakh. That is the income tax on individuals and businesses having annual income less than or equal to 07 lakh will be rebated and will not be liable to pay any tax on income. Moreover, the Government is intending to roll out next – gen common IT Return forms and strengthen grievance redressal mechanism.