The list of income tax rates and slabs for the current year is expected to be the same for the new year 2023. Although the experts are hoping for a change in existing tax slabs, the Government may not impose any major changes. So, below are mentioned tax rates and slabs for 2023 in terms of the old and new regimes.
Present Income Tax Rates and Slabs 2023
As Per Old Rules For:
- 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 lahks: 15%
- Annual income up to Rs 10-12.5 lakh: 20%
- Annual income up to Rs 12.5-15 lahks: 25%
- Annual income up to Rs 15-20 lakh: 30%
- Annual income above Rs 20 lakh: 30%
As Per New Rules For:
- 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 2023
Several tax experts and different industry sectors are wanting the Government to make changes in tax rates and slabs in such a way that it benefits the taxpayers and provides some relief.
“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”, said Tapti Ghose, a senior from Deloitte.
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Expected Tax Rates As Per Old Rules For:
- 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%
Expected Tax Rates As Per New Rules For:
- 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 lahks: 15%
- Annual income up to Rs 10-12.5 lakh: 20%
- Annual income up to Rs 12.5-15 lahks: 20%
- Annual income up to Rs 15-20 lakh: 20%
- Annual income above Rs 20 lakh: 25%
