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Budget 2023: Here's a quick comparison of new vs existing income tax slabs

The Union Budget 2023 can introduce some important deductions to the new income tax regime to make it more attractive for tax payers. The new regime offers lower rates but still hasn't gained traction.

January 26, 2023 / 08:54 AM IST
The new income tax regime could see a rejig of slabs.

The new income tax regime could see a rejig of slabs.

Finance minister Nirmala Sitharaman could go for a rejig of tax slabs in Budget 2023 to make the new income tax regime more attractive. The rejig could also signal a gradual movement towards an exemption-less tax regime in future.

The new regime has remained unpopular and is likely to see some of the important exemptions become a part of it.

Experts have called for inclusion of standard deduction and housing loan interest in the new regime.

At present, tax payers can choose between the two regimes to pay their taxes.

Here's a quick comparison of the new and old tax regime:

Annual IncomeExisting regimeNew regime
up to Rs 2,50,000NilNil
2,50,000-5,00,0005%5%
5,00,000-7,50,00020%10%
7,50,000-10,00,00020%15%
10,00,000-12,50,00030%20%
12,50,000-15,00,00030%25%
Above 15,00,00030%30%