Income Tax Rate and Slab 2023: What will be tax rates and slabs in New Year for ITR filing? Will they change?

 

Income Tax Rates and Slabs 2023 (Assessment Year 2023-24): The Income Tax rates and slabs that were applicable in AY 2022-23 are expected to remain the same in the New Year (AY 2023-24). Though some experts are expecting that the upcoming Budget 2023 should revise the rates for some slabs, no big bang change is expected to be announced by the Government. That being said, the following are the existing Income Tax Rate and Slab that are likely to remain unchanged in 2023 as well.

INCOME TAX SLABS AND 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 lakh: 15%
  • Annual income up to Rs 10-12.5 lakh: 20%
  • Annual income up to Rs 12.5-15 lakh: 25%
  • Annual income up to Rs 15-20 lakh: 30%
  • Annual income above Rs 20 lakh: 30%

Read More: Income Tax relief for salaried employees: Section 80C to HRA rules change expected from Budget 2023

INCOME TAX SLABS AND RATES 2023 (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: 30%
  • Annual income above Rs 20 lakh: 30%

EXPECTED INCOME TAX RATES AND SLABS IN BUDGET 2023

Several tax experts and industry bodies have urged the Government to revise Income Tax Rate in certain slabs in order to provide relief to taxpayers.

“The tax rate for individuals has not been changed since FY2017-18 (new tax regime bought in FY2020-21). Hence, to give more purchasing power to individuals and some relief to the employed taxpayers, the highest tax rate of 30 per cent should be reduced to 25 per cent and the threshold limit for the highest tax rate be increased from INR 10 lakh to INR 20 lakh. Therefore, the proposed highest slab rate (including surcharge and cess) can be reduced to 35.62 per cent,” says Tapti Ghose, Partner, Deloitte.

Read More: Income Tax exemption limit change from Rs 2.5 lakh to Rs 5 lakh expected from Budget 2023

In Deloitte’s Budget expectation, Ghose has recommended the following Income Tax rates:

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 lakh: 15%
  • Annual income up to Rs 10-12.5 lakh: 20%
  • Annual income up to Rs 12.5-15 lakh: 20%
  • Annual income up to Rs 15-20 lakh: 20%
  • Annual income above Rs 20 lakh: 25%

Budget 2023 will be presented by Finance Minister Nirmala Sitharaman on February 1, 2023.

Source :
Msn

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