It is expected that the income tax rates and slabs that were in effect for AY 2022-23 will not change in the coming year (AY 2023-24). Although some analysts anticipate that the rates for several slabs will be revised in the approaching Budget 2023, no significant modification is expected to be revealed by the Government. The current income tax rate and slab are listed here; they are likely not going to change in 2023 either.
Income Tax Slabs and Rates 2023 (New Regime)
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Annual income up to Rs 2.5 lakh: NIL
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Annual income up to Rs 2.5- 5 lakh: 5%
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Annual income up to Rs 5-7.5 lakh: 10%
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Annual income up to Rs 7.50-10 lakh: 15%
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Annual income up to Rs 10-12.5 lakh: 20%
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Annual income up to Rs 12.5-15 lahk: 25%
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Annual income up to Rs 15-20 lakh: 30%
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Annual income above Rs 20 lakh: 30%
Income Tax Slabs and Rates 2023 (Old Regime)
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Annual income up to Rs 2.5 lakh: NIL
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Annual income up to Rs 2.5- 5 lakh: 5%
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Annual income up to Rs 5-10 lakh: 20%
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Annual income up to Rs 10-20 lakh: 30%
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Annual income above Rs 20 lakh: 30%
Expected Income Tax Rates and Slabs in Budget 2023
In order to give taxpayers relief, a number of tax professionals and business organizations have requested the government to change the income tax rate in some slabs.
Income Tax Rates (Old Regime)
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Annual income up to Rs 2.5 lakh: NIL
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Annual income up to Rs 2.5- 5 lakh: 5%
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Annual income up to Rs 5-10 lakh: 20%
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Annual income up to Rs 10-20 lakh: 20%
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Annual income above Rs 20 lakh: 25%
Income Tax Rates 2023 (New Regime)
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Annual income up to Rs 2.5 lakh: NIL
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Annual income up to Rs 2.5- 5 lakh: 5%
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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%
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Annual income up to Rs 12.5-15 lakh: 20%
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Annual income up to Rs 15-20 lakh: 20%
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Annual income above Rs 20 lakh: 25%
Nirmala Sitharaman, the finance minister, will present the budget for 2023 on February 1st.
