New Income Tax Slabs Budget 2023 Highlights: Big Rebate on Income Tax, NO Tax on Income up to Rs 7 Lakh in new tax Regime

Income Tax Slabs Budget 2023 LIVE Updates: Currently, those with an income of Rs 5 lakhs do not pay any income tax and I proposed to increase the rebate limit to Rs 7 lakhs in the new tax regime

Income Tax Slabs Budget 2023 LIVE Updates

Income Tax Slabs Budget 2023 LIVE Updates:  Finance Minister Nirmala Sitharaman on Wednesday announced big sop for individual Tax payers. On the Personal Income Tax front, FM has raised the income tax slab for tax payers. 

As per the the new tax rates from 0 to Rs 3 lakhs - individual tax payer will not have to pay any tax, for Rs 3 to 6 lakhs - 5% tax will be levied, Rs 6 to 9 Lakhs - 10% tax will be levied, Rs 9 to 12 Lakhs - 15% tax will be levied, Rs 12 to 15 Lakhs - 20% tax will be levied and above 15 Lakhs - 30% tax will be levied, said the FM

"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," FM added

"Currently, those with an income of Rs 5 lakhs do not pay any income tax and I proposed to increase the rebate limit to Rs 7 lakhs in the new tax regime," FM Sitharaman presenting her Budget speech said. 

The Income Tax slabs and tax rates have not been changed for a long time now. Though the Finance Minister introduced a new tax regime in the Budget in 2020, it did come with a catch on deductions. A change in the income tax slab is seen as a huge relief for millions of individual taxpayers who are reeling under high inflation.

Budget 2023 LIVE Streaming on Zee News:

Here are the Highlights of Budget 2023 Announcement

01 February 2023

19:42 IST

That's that. FM Sitharaman  --as Industry watchers have described --has presented a holistic and growth oriented Budget that has something for everyone. Thanks for joining us in our coverage today. See you again for the live coverage of next Big Biz Event. 

19:05 IST

Union Budget 2023 Today LIVE: Limit of Rs 3 lakh for tax exemption on leave encashment Increased to Rs 25 lakh

Encashment of earned leave up to 10 months of average salary, at the time of retirement in case of an employee (other than an employee of the Central Government or State Government), is exempt under sub-clause (ii) of clause (10AA) of section 10 of the Income-tax Act (“the Act”) to the extent notified. The maximum amount which can be exempted is Rs 3 lakh at present. It is proposed to issue notification to extend this limit to Rs 25 lakh

19:03 IST

Union Budget 2023 Today LIVE: Standard Deduction of Rs 50K to Salaried Individual

Standard deduction of Rs  50,000 to salaried individual, and deduction from family pension up to Rs 15,000, is currently allowed only under the old regime. It is proposed to allow these two deductions under the new regime also

19:02 IST

Union Budget 2023 Today LIVE: Substantial Relief Proposed Under New Regime 

Substantial relief is proposed under the new regime with new slabs and tax rates as under:

17:14 IST

Union Budget 2023 LIVE: Budget Presented by FM Has Many Positives

PN Vasudevan  - MD & CEO , Equitas Small Finance Bank has welcomed the Budget presented by FM Sitharaman. He lauded the Budget for being "a growth-oriented budget with a planned capital outlay of Rs 10 Lakh Crore and a higher allocation for the PM Awaz Yojna Scheme which would spur the housing finance market and all its upstream and downstream industries"

17:13 IST

Budget 2023 Live Updates: Union Budget 2023 is strongly focused on promoting innovation

Sanjiv Kanwar, Managing Director, Yara South Asia has welcomed the Union Budget 2023 for "promoting innovation, research, digitization and technology in agriculture".

"The development of digital infrastructure for agriculture as an open source will enable inclusive farmer-centric solutions through improved access to farm inputs," he said

14:00 IST

Income tax slabs LIVE: New Income Tax Regime to Become Default Option

New income tax regime will now become the default option, but people will still have the option to go for earlier regime

13:45 IST

Budget Income Tax Announcements: Standard Deduction to Taxpayers Under the New Regime

Rs 50,000 standard deduction to taxpayers under the new regime, where assessees cannot claim deductions or exemptions on their investments

12:43 IST

New Income Tax Slabs Budget 2023 Live: Check How Much Tax Payers Have to Pay Tax Now

12:40 IST

New Income Tax Slabs Budget 2023 Live: FM Announces New Tax Regime

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%.

12:21 IST

New Income Tax Slabs Budget 2023 Live: Tax Payers will get Up To Rs 7 Lakh Exemption Under New Tax System

FM Nirmala Sithraman announces that up to Rs 7 lakh exemption will be given to tax payers under new tax system in budget speech.

12:03 IST

New Income Tax Slabs Budget 2023: Customs duty on lab grown diamonds to be reduced

FM Nirmala Sitharaman has announced in her budget speech that customs duty on lab grown will be reduced to promote the import in the segment. 

11:58 IST

New Income Tax Slabs Budget 2023 Live: PAN to be Used for Common Identifier for All Digital Systems 

If MSMEs fail to execute contract, 95 % of performance security will be returned to small business as part of Vivad Se Vishwas.

11:15 IST

Income Tax Slabs Budget 2023 LIVE: EPFO subscribers double in 2022

In her budget speech, FM Nirmala Sitharaman says that the number of EPFO members double in 2022 from the last year. 

10:21 IST

Budget Income Tax Announcements: Deferred tax on ESOP to be extended to employees not just of certain eligible startups but also to employees of all private companies

Expectation: There is no logic to granting this relaxation only to employees of certain eligible startups. Employees of ALL unlisted companies should be eligible for deferment of tax on exercise of ESOPs, and they should all be taxed only when they receive income at the time of sale of the shares in a liquidity event. There could be fast-growing unlisted companies that could be more mature and don’t meet qualification criteria for “eligible startups” and there’s no reason to deny them an ability to hire and incentivize employees through the ESOP route, says Vijay Sambamurthi, Founder and Managing Partner, Lexygen

09:42 IST

Budget Income Tax Announcements: Angel Tax Exemption to be Extended to all Companies, and not just for certain registered startups

In the first instance, taxing private companies for raising domestic capital (other than from registered venture capital funds) rather than foreign capital is patently unfair and not justifiable. While the government has attempted to address this concern, providing an exemption only to certain registered startups is a sub-optimal solution, in my view, as startup registration is conditional on many factors, which some startups may not be able to fulfil as it could impede growth. The government should therefore, in my view, totally eliminate this “angel tax” clause for all companies, and instead, only introduce a clause empowering government to issue notices in cases where the transaction is prima facie, not appearing genuine fundraising by an operating company, says Vijay Sambamurthi, Founder and Managing Partner, Lexygen

09:04 IST

Budget Income Tax Announcements: Differential STCG tax rate for non-residents and residents

To boost global angel and VC investments, the Budget should bring parity in capital gains tax rates applicable for non-residents and residents. Currently, non-residents pay a significantly higher tax at approx 42.75% on STCG in comparison to Indian residents. Coupled with the huge problem of forex-related erosion of gains (in dollar terms), this differential tax rate can very materially lower the return for a foreign investor compared to an Indian investor in the wsame startup! I am aware of several prominent VCs and star angel investors from around the world who totally stay away from investing in Indian startups on account of this. This ultimately hurts Indian startups and their ability to raise quality global capital, says Vijay Sambamurthi, Founder and Managing Partner, Lexygen

08:06 IST

Income Tax Slabs Budget 2023 LIVE: Increase Limits Under Section 80C

The salaried employee in India constitutes a big chunk of the percentage who files the annual income tax returns and pay taxes to the Government. With the increase in the inflation rate, and the long-drawn covid impact has resulted in increase in the average cost of living, and substantial decrease in savings thus has impacted the lower- and middle-class individuals drastically. The people expect some relief by way of increasing or revising the tax slabs, increasing the limits under section 80C, increase in deduction for housing loan interests and standard deduction. Further, HRA deductions for cities such as Bangalore, Hyderabad and Pune that are still in the bracket of 40% of salary shall be included in the bracket of metro cities, said Dharmendra Chachan, Parrtner, Chachan & Lath LLP

08:05 IST

Hello and Welcome to our LIVE Coverage of Union Budget 2023-24 that will be presented by Indian Finance Minister Nirmala Sitharaman on Wednesday (February 1, 2023). The Union Budget 2023 will be presented by the FM at 11 am tomorrow.