Tax Revision: Old Tax Regime v/s New Regime

NEW DELHI: Under the Budget 2023-24, the union ministry revised the income tax slab from Rs 5 lakh previously to Rs 7 lakh per annum.

A five-slab structure will apply now under the New regime, also raising the no-tax slab by Rs 50,000. Income between Rs 0-3 lakh will have no tax; it was zero to Rs 2.5 lakh earlier.

Income part from Rs 3lakh and 6 lakh will be taxed at 5 per cent

Rs 6 lakh to Rs 9 lakh, at 10 per cent

Rs 9 lakh to 12 lakh 15 per cent

Rs 12 lakh to 15 lakh will attract a 20-per-cent tax and The part of income going above Rs 15 lakh will be taxed at 30 per cent.

The minister also brought down the highest applicable tax rate in India after surcharges, from 42.7 per cent to 39.

The salaried people with income of Rs 15.5 lakh or more can subtract Rs 52,500 as Standard Deduction while calculating their taxable income.

It should be noted that this change is only for those who choose the New Tax Regime. 

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