Union budget 2023: Income tax rebate limit raised to Rs 7 lakh

New Delhi: In a major announcement, Union Finance Minister Nirmala Sitharaman on Wednesday announced that those earning up to Rs 7 lakh per annum will not have to pay any tax under the new tax regime.

Presenting the Union budget 2023, the FM said the limit has been extended from Rs 5 lakh per annum.

Personal Income Tax: “The new tax rates are 0 to Rs 3 lakhs – nil, Rs 3 to 6 lakhs – 5%, Rs 6 to 9 Lakhs – 10%, Rs 9 to 12 Lakhs – 15%, Rs 12 to 15 Lakhs – 20% and above 15 Lakhs – 30%, ” says Union Finance Minister Nirmala Sitharaman

“I introduced in 2020, the new personal income tax regime with 6 income slabs, starting from Rs 2.5 Lakhs. I propose to change the tax structure in this regime by reducing the number of slabs to 5 and increasing the tax exemption limit to Rs 3 Lakhs,” said FM Nirmala Sitharaman.