Budget 2023 Income Tax Changes: FM Announced New Tax Rates Under New Regime, Check Here

FM Nirmala Sitharaman announced an increase in the income tax rebate threshold under the new tax system from Rs. 5 lakh to Rs. 7 lakh. She continued by saying that the new tax system will now be used by default. In the new tax system, the FM also decreased the number of tax slabs.

The new tax brackets in the New Tax Regime, per FM Nirmala Sitharaman's Budget Speech for 2023, are listed below.

1. 0-Rs 3 lakh: Nil
2. Rs 3-6 lakh: 5% Income Tax
3. Rs 6-9 lakh: 10% Income tax
4. Rs 9-12 lakh: 15% Income tax
5. Rs 12-15 lakh: 20% Income tax
6. Above Rs 15 lakh: 30% Income Tax