New Tax Rates for Salary Income Person in 2023

1) Taxable income does not exceed Rs.600,000. Tax rate (0%)

2) Taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000. Tax rate (2.5% of the amount exceeding Rs. 600,000)

3) Taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000. Tax rate (Rs. 15,000 + 12.5% of the amount exceeding Rs. 1200,000)

4) Taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000. Tax rate (Rs 165,000 + 20% of the amount exceeding Rs. 2,400,000)

5) Taxable income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000. Tax rate (Rs. 405,000 + 25% of the amount exceeding Rs. 3,600,000)

6) Taxable income exceeds Rs. 6,000,000 but does not exceed Rs. 12,000,000. Tax rate (Rs. 1,005,000 + 32.5% of the amount exceeding Rs. 6,000,000)

7) Taxable income exceeds Rs. 12,000,000. Tax rate (Rs. 2,955,000 + 35% of the amount exceeding Rs. 12,000,000)

According to the amended Finance Bill 2023, the salaried class would be subject to a higher rate of income tax starting on July 1, 2023, if their annual taxable income exceeds Rs. 2,400,000.

Sr #	Taxable Income	Rate of Tax
1.	up to Rs. 600,000	0%
2.	Rs. 600, 001 – 1,200,000	2.5% of the amount exceeding Rs. 600,000
3.	Rs. 1,200,000 – 2,400,000	Rs. 15,000 + 12.5% of amount exceeding Rs. 1,200,000
4.	Rs. 2,400,000 – 3,600,000	Rs. 165,000 + 20% of amount exceeding Rs. 2,400,000
5.	Rs. 3,600,001 – 6,000,000	Rs. 405,000 + 25% of amount exceeding Rs. 3,600,000
6.	Rs. 6,000,001 – 12,000,000	Rs. 1,005,000 + 32.5% of amount exceeding Rs. 6,000,000
7.	Amount Exceeding Rs. 12,000,000	Rs. 2,955,000 + 35% of amount exceeding Rs. 12,000,000

However, the rate of tax for the lower slabs will remain the same.

The rate of tax in the table above is applicable where the income of an individual chargeable under the head ‘salary’ exceeds seventy-five percent of his/her taxable income.