New Tax Regime Comes Into Effect From Tomorrow

The start of the new financial year 2023-24 on April 1 is significant from the perspective of personal finances because the majority of the Budget's income tax proposals go into effect on this date. With the start of a new financial year, many changes will take effect. Your money and taxes may be impacted by these modifications.

Under the new tax system, Budget 2023 has revised the income tax slabs. The number of income tax brackets has been lowered from six to five, according to the announcement.

New Tax Slab effective From April 01, 2023

Income range (In Rs)	Income tax rate (%)
0 to 3,00,000	Nil
3,00,000 to 6,00,000	5
6,00,000 to 9,00,000	10
9,00,000 to 12,00,000	15
12,00,000 to 15,00,000	20
Above 15 lakh	30

For income up to Rs 3 lakh, no tax would be assessed under the newly revised tax system. Income between Rs. 3-6 lakh would be taxed at a rate of 5%; Rs. 6-9 lakh at a rate of 10%; Rs. 9-12 lakh at a rate of 15%; Rs. 12-15 lakh at a rate of 20%; and Rs. 15 lakh and above at a rate of 30%. The new slab, with changes, will also become the default option.

Beginning April 1, 2023, the standard deduction for salaried workers will be a part of the "new tax slab."