What’s new in the new income tax regime

– Basic exemption limit is hiked from Rs 3 lakh to Rs 2.5 lakh

– Rebate under section 87A has been hiked from Rs 5 lakh to Rs 7 lakh

– The income tax slabs under the new income tax regime will be as follows:
a) Rs 0 to Rs 3 lakh – 0% tax
b) Rs 3 to 6 lakh – 5% tax
c) Rs 6 to 9 lakh – 10% tax
d) Rs 9 lakh to Rs 12 lakh – 15% tax
e) Rs 12 lakh to Rs 15 lakh – 20% tax
f) Above Rs 15 lakh above – 30% tax

– Individuals with income of Rs 15.5 lakh and above have been made eligible for standard deduction of Rs 52,500 in new tax regime in Budget 2023.

– Further, the new income tax regime becomes default tax regime. However, the individuals will have an option to continue with the old income tax regime