Budget 2023: What are 7 tax slabs in new Income Tax regime? Explained
New Income Tax Regime: It offers seven tax slabs with prevailing rates reduced on income up to Rs 15 lakhs.
New Income Tax Regime: The government had in 2019 introduced a new tax regime with effect from the financial year 2020-21. It offers seven tax slabs with prevailing rates reduced on income up to Rs 15 lakhs. Due to the income slabs and the various tax rates, multiple exemptions and deductions are not applicable here.
Under the New Tax Regime, individuals do not have to pay any tax up to the salary of Rs 2.5 lakhs per year. Image source- Pixabay
Taxpayers who have salary between Rs 2.5 lakhs to Rs 5 lakhs have to pay 5 per cent tax without deductions and exemptions. Image source- Pixabay
Citizens who have salary between Rs 5 lakhs to Rs 7.5 lakhs have to pay 10 per cent tax without deductions and exemptions. Image source- Pixabay
Individuals who have salary between Rs 7.5 lakhs to Rs 10 lakhs have to pay 15 per cent tax without deductions and exemptions. Image source- Pixabay
Individuals who have salary between Rs 10 lakhs to Rs 12.5 lakhs have to pay 20 per cent tax without deductions and exemptions. Image source- Pixabay
Individuals who have salary between Rs 12.5 lakhs to Rs 15 lakhs have to pay 25 per cent tax without deductions and exemptions. Image source- Pixabay
Individuals who have salary above Rs15 lakhs have to pay 30 per cent tax without deductions and exemptions. Image source- Pixabay