Budget 2023-24: All you need to know about FM’s announcements on personal tax

Feb 1, 2023

By: Anagh Pal

Rebate limit increased

Persons with income up to ₹7 lakh will not pay income tax in the new tax regime. The limit was earlier ₹5 lakh.

Credit: Canva

New exemption limit

The tax exemption limit increased to ₹3 lakh in the new regime

Credit: Canva

Change in tax structure

The number of slabs were reduced to five in the new tax regime

Credit: Business-Insider-India

Standard deduction extended to new regime

Salaried class and pensioners to gain on extension of standard deduction benefit to the new tax regime

Credit: Canva

Tax benefit for high-income people

Surcharge in annual income above ₹5 crore reduced from 37 percent to 25 percent.

Credit: Canva

Government encourages new tax regime

New tax regime to be the default tax regime

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Option to avail old tax regime benefits

Here, they can get benefits of HRA, 80C and other deductions

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Tax savings to boost savings and consumption

Tax saved by individuals in higher income brackets will result in the amount getting channelized into both consumption and savings

Credit: Canva

Further rationalization expected

“Further rationalization in the new tax regime would be required to encourage the complete move from the old tax regime to new tax regime,” says Akhil Chandna, Partner, Grant Thornton Bharat.

Credit: Canva

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