New tax slab
Here is the latest information on the new tax slab in India, effective from the 2023-2024 financial year:
New Tax Slab (2023-2024)
The Union Budget 2023 has introduced a new tax slab structure, which is as follows:
| Taxable Income | Tax Rate |
|---|---|
| Up to ₹2.5 lakh | 0% (Nil) |
| ₹2.5 lakh to ₹5 lakh | 5% |
| ₹5 lakh to ₹7.5 lakh | 10% |
| ₹7.5 lakh to ₹10 lakh | 15% |
| ₹10 lakh to ₹12.5 lakh | 20% |
| Above ₹12.5 lakh | 25% |
Key Changes
- New 5% tax slab: The new tax slab of 5% has been introduced for individuals with taxable income between ₹2.5 lakh to ₹5 lakh.
- Increased tax exemption limit: The tax exemption limit has been increased from ₹2.5 lakh to ₹2.5 lakh for individuals below 60 years of age.
- No tax on income up to ₹2.5 lakh: Individuals with taxable income up to ₹2.5 lakh will not have to pay any tax.
- Surcharge and cess: The surcharge and cess rates have been reduced for individuals with taxable income above ₹5 lakh.
Other Changes
- Standard deduction: The standard deduction has been increased from ₹50,000 to ₹75,000 for salaried individuals.
- TDS: The TDS (Tax Deduction at Source) rate has been reduced from 10% to 5% for salaried individuals with taxable income up to ₹5 lakh.
- Vivad se Vishwas scheme: The Vivad se Vishwas scheme has been extended for another year to help resolve pending tax disputes.
Please note that these changes are subject to change and may be updated based on further announcements or notifications from the government. It's always a good idea to consult with a tax professional or financial advisor to understand how these changes may impact your specific situation.