Highest surcharge on personal income tax reduced from 37% to 25%
The highest surcharge levied under personal income tax has been reduced significantly from 37% to 25% in the new tax regime. As a result the effective tax rate on highest income slab with income above Rs 2 crore, which is currently is 42.74% that includes all surcharges, will come down to 39%."My fourth announcement in personal income tax is regarding the highest tax rate which in our country is 42.74 per cent. This is among the highest in the world. I propose to reduce the highest surcharge rate from 37 per cent to 25 per cent in the new tax regime. This would result in reduction of the maximum tax rate to 39 per cent" said the Union Finance Minister in her Budget 2023 speech.
The new surcharge table
Taxable income
Surcharge (%)
Income above Rs 50 lakh but below Rs 1 crore
10
Income above Rs 1 crore but below Rs 2 crore
15
Income above Rs 2 crore
25
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Surcharge (%)
Income above Rs 50 lakh but below Rs 1 crore
10
Income above Rs 1 crore but below Rs 2 crore
15
Income above Rs 2 crore but below Rs 5 crore
25
Income above Rs 5 crore
37
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This story originally appeared on: India Times - Author:Faqs of Insurances
