IN PICs | No Income Tax Up To Rs 7 Lakh Annual Income, New Tax Slabs, More In Budget 2023

Finance Minister Nirmala Sitharaman on Wednesday announced to increase in the rebate limit to Rs 7 lakh in the new tax regime. She made five major announcements to make regarding personal income tax

No Income Tax Up To Rs 7 Lakh Annual Income, New Tax Slabs, More In Budget 2023

Finance Minister proposed to increase the rebate limit to Rs 7 lakh in the new tax regime. Thus, persons in the new tax regime, with income up to Rs 7 lakh will not have to pay any tax. [Image Credit: Getty]

Nirmala Sitharaman proposed to change the tax structure in the new tax regime by reducing the number of slabs to five and increasing the tax exemption limit to Rs 3 lakh. [Image Credit: PTI]

"The new tax rates are 0 to Rs 3 lakhs - nil, Rs 3 to 6 lakhs - 5 Per cent, Rs 6 to 9 Lakhs - 10 per cent, Rs 9 to 12 Lakhs - 15 per cent, Rs 12 to 15 Lakhs - 20 per cent and above 15 Lakhs - 30 per cent, " Union Finance Minister said. [Image Credit: Canva]

Sitharaman also announced to extend the benefit of 34 standard deductions to the new tax regime. Each salaried person with an income of Rs 15.5 lakh or more will thus stand to benefit by Rs 52,500, FM said. [Image Credit: Canva]

Nirmala Sitharaman also announced the reduction of the highest surcharge rate from 37 per cent to 25 per cent in the new tax regime. This would result in a reduction of the maximum tax rate to 39 per cent. [Image Credit: Canva]

Finance Minister also said that the government is making the new income tax regime the default tax regime. However, citizens will continue to have the option to avail the benefit of the old tax regime. [Image Credit: Getty]