Budget 2023-24 : Income Tax rebate limit increased to 7 lakh from 5 lakh under New IT regime

New Delhi : In a big announcement, Finance Minister Nirmala Sitharaman has raised personal income tax exemption limit to Rs. 3 lakh from the existing Rs. 2.5 lakh annual  income. The government has also raised income tax rebate limit to Rs. 7kah from the existing Rs.5 lakh.

Listing out new tax slabs, the finance minister also announced that the Old Tax Regime will only be available on request, and what was known as the New Tax Regime so far will thus be considered the default regime.

There will be five slabs now under this regime, with taxable income calculated after all exemptions such as life insurance premium and long-term mutual funds:

• Taxable income of ₹ 0-3 lakh (after all exemptions) will be nil;
• Rs 3 lakh to 6 lakh will be taxed at 5 per cent;
• If income is above ₹ 6 lakh, up to ₹ 9 lakh, it will be taxed at 10 per cent;
• Above ₹ 12 lakh and up to 15 lakh to be taxed at 20 per cent; and
• Income above ₹ 15 lakh to be taxed at 30 per cent