Here are the changes made in tax slabs and tax rates in the Union Budget 2023

5paisa Research Team 1st February 2023 - 05:32 pm

The income tax rebate limit increased from Rs 5 lakh to Rs 7 lakh under the new tax regime.

On 1 February 2023, Finance Minister Nirmala Sitharaman presented the Union Budget for 2023-24, the budget involved changes in the tax slabs for the new tax regime. For people earning Rs 0 to 3 lakhs the tax rate is 0%, for people earning Rs 3 – 6 lakhs the rate is 5%, for people earning Rs 6 – 9 lakhs the rate is 10%, for people earning Rs 9 – 12 lakhs the rate is 15%, for people earning Rs 12 – 15 lakhs the rate is 20% and, for people earning more than Rs 15 lakhs the rate is 30%. The new tax regime would become the default. Also, the income-tax rebate limit increased from Rs 5 lakh to Rs 7 lakh under the new tax regime.

The changes in the new tax regime and tax slabs will further boost consumption in the economy and sectors like consumer durables, automobile & ancillaries, FMCG, and entertainment have a high probability to be in focus today.

While the finance minister presented the budget, shares of PVR went about 1% up, Tata Motors shares jumped about 1.5%, HUL shares went up about 0.30%, shares of Marico went up about 1%, Britannia Industries shares went up about 1%, Shares of Varun Beverages went up by about 0.30%. The increase in the share price was due to an increase in tax exemption limit which can lead to an increase in consumption.

Today, the Sensex opened at 60,001.17 and made a high and low of 60,773.44 and 58,816.64. Currently, the frontline index Sensex recovered from the day lows of 58,816.84 and closed at 59,708.08 with an increase of 158.18 points or 0.27%.

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5paisa Research Team

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