New Delhi: Finance Minister Nirmala Sitharaman today announced the new income tax rates while presenting the Union Budget 2023.

"Currently, those with income up to Rs 5 lakh do not pay any income tax in both old and new tax regimes. I propose to increase the rebate limit to Rs 7 lakh in the new tax regime. Thus, persons in the new tax regime, with income up to Rs 7 lakh will not have to pay any tax," the Finance Minister said.

Below are the new income tax rates:

Rs 0-3 Lakhs - Nil
Rs 3-6 Lakhs - 5%
Rs 6-9 Lakhs - 10%
Rs 9-12 Lakhs - 15%
Rs 12-15 Lakhs - 20%
Above Rs 15 Lakhs - 30%

"I propose to reduce the highest surcharge rate from 37% to 25 % in the new tax regime," she added.