– 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
Basic Exemption is hiked from 2.5 Lakhs to 3 Lakhs…. Not 3 Lakhs to 2.5 Lakhs as you mentioned…
To get standard deduction benefit of ₹ 52500,one has to have taxable income of ₹15500 and above. It appears this is not applicable to those whose income is below this. This is the hitch in the new tax regime.