Slab 2023 and Income Tax Rate – What tax rates and slabs will apply to ITR filings in the new year and what are the implications? Learn
Rates for tax slabs can be changed in the upcoming budget for 2023. At the same time, many people are also saying that the income tax rates and slabs were applicable in the assessment year 2022-23.
New Delhi. Finance Minister Nirmala Sitharaman will present the budget on 1 February 2023. This year taxpayers are hopeful that they can be given some relief. Some experts are expecting that the rates for tax slabs may be changed in the upcoming budget of 2023. At the same time, many people are also saying that the income tax rates and slabs which were applicable in the assessment year 2022-23, can remain applicable in the new assessment year (AY 2023-24) as well.
Let us tell you that at present two tax systems are in force in the country. You can choose any of these according to your convenience. Now it has to be seen what changes will happen next year.
Income Tax Slabs and Rates 2023 (New Regime)
On annual income up to Rs 2.5 lakh: Zero
On annual income up to Rs 2.5-5 lakh: 5%
On annual income up to Rs 5-7.5 lakh: 10%
On annual income up to Rs 7.50-10 lacks: 15%
On annual income up to Rs 10-12.5 lakh: 20%
On annual income up to Rs 12.5-15 lacks: 25%
On annual income up to Rs 15-20 lakh: 30%
On annual income above Rs 20 lakh: 30%
Income Tax Slabs and Rates 2023 (Old Regime)
On annual income up to Rs 2.5 lakh: Zero
On annual income up to Rs 2.5-5 lakh: 5%
On annual income up to Rs 5-10 lakh: 20%
On annual income up to Rs 10-20 lakh: 30%
On annual income above Rs 20 lakh: 30%
Changes in income tax rates and slabs expected in Budget 2023
Several tax experts and industry bodies have urged the government to revise the income tax rate in certain slabs to provide relief to taxpayers. The tax rate for individuals has not been changed since FY 2017-18 (new tax regime in FY 2020-21). Experts are expecting that to give some relief to the employed taxpayers, the top tax rate of 30 percent should be reduced to 25 percent and the top tax limit should be increased from Rs 10 lakh to Rs 20 lakh.
Tapti Ghosh, partner, Deloitte India, expects from the budget:
Income Tax Rates (Old Regime)
Annual income up to Rs 2.5 lakh: Nil
Annual income up to Rs 2.5-5 lakh: 5%
Annual income up to Rs 5-10 lakh: 20%
Annual income up to Rs 10-20 lakh: 20%
Annual income above Rs 20 lakh: 25%
Income Tax Rates 2023 (New Regime)
Annual income up to Rs 2.5 lakh: Nil
Annual income up to Rs 2.5-5 lakh: 5%
Annual income up to Rs 5-7.5 lakh: 10%
Annual income up to Rs 7.50-10 lacks: 15%
Annual income up to Rs 10-12.5 lakh: 20%
Annual income up to Rs 12.5-15 lacks: 20%
Annual income up to Rs 15-20 lakh: 20%
Annual income above Rs 20 lakh: 25%
