Budget 2023: Income Rebate Limit increased to 7 lakhs

Union Finance Minister Nirmala Sitharaman stated that there will be no income tax up to Rs. 7 lakhs in the new tax regime.

She announced the Union Budget 2023 this morning in Parliament. In the budget session, she stated that the government to increase the income tax rebate limit from Rs. 5 lakhs to Rs. 7 lakhs in the new tax regime.

According to the revised tax slabs, there will not be any income tax for annual income below Rs. 3 lakhs. Income above three lakhs and up to five lakhs will be taxed at 5 per cent. Income of above six lakhs and up to nine lakhs will be taxed at 10 per cent. Income between Rs. 12 lakhs to Rs. 15 lakhs will be taxed at 20 per cent. Income above Rs. 15 lakhs will be taxed at 30 per cent.

Nirmala Sitharaman also said that the citizens will have the option to be in the old tax regime. The new tax regime will be the default regime from now on.

It was also announced that the prices of Mobile phones, TVs, camera lenses and lithium batteries to get cheaper this year.