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

Feb 1, 2023

Credit: Canva

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.

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New exemption limit

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

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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

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Tax benefit for high-income people

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

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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

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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