Union budget of 2023-24: New tax slabs and increased rebate limits

Friday, November 15, 2024

The Finance Minister of India, Nirmala Sitharaman has presented the Budget of India for the fiscal year 2023-24, and needless to say, they made some positive changes keeping the upcoming general parliamentary elections of 2024 in mind. Among a couple of remarkable changes, the new tax slabs are the ones that stood out.

The Finance Ministry decided to increase the Income Tax rebate limit from 5 lakhs to 7 lakhs in order to encourage the residential workers of India. The Ministry also made some changes to the existing tax slabs and provided some relief to the majority of the salaried employees. According to the revised slabs, no income tax is to be paid if the annual income is less than 3 lakhs of rupees. Tax comes into play if the annual income is anywhere above the 3 lakhs limit and it starts at 5% if the annual income is between 3 lakhs and 5 lakhs. One has to pay an income tax of 10% if the annual income is between 6 and 9 lakhs, 15% if the annual income is between 9 and 12 lakhs, 20% if the annual earning is below 15 lakhs, and 30% if the earning is above 15 lakhs.

Nirmala Sitaraman assured that the prices of electronic goods like Mobiles, TVs, Cameras, Computers, and other devices can become cheaper than in the past. However, she increased the import tax on Cigarettes leaving smokers in vain. All in all, the budget of this year is said to be better than in the past, opine the trade analysts. 

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