Income Tax Slab in Budget 2023: New Regime Attractive As It Gives Greater Rebates, Says Sitharaman

New Income Tax Slabs Budget 2023 Updates: Income Tax Slabs Budget 2023, Income Tax Announcements Today Live, Check the latest news and updates on Personal Income Tax changes, new savings, and investment What is the expected new income tax slab for 2023-24?

By: News Desk

Last Updated: February 02, 2023, 15:55 IST

New Delhi, India

New Income Tax Slab in Budget 2023 LIVE Updates
New income tax slabs announced in Budget 2023.

New Income Tax Slabs Budget 2023 Updates: Prime Minister Narendra Modi on Wednesday called the Union Budget 2023 “historic” and said it ensured ease of living with tax relief. In good news for salaried individuals, Union Finance Minister Nirmala Sitharaman tweaked the slabs to provide some relief to the middle class by announcing that no tax would be levied on annual income of up to Rs 7 lakh under the new tax regime.

In the Union Budget for 2023-24, Sitharaman allowed a Rs 50,000 standard deduction to taxpayers under the new regime, where assessees cannot claim deductions or exemptions on their Read More

Feb 02, 2023 15:55 IST

How To Save Income Tax On Salary In New Tax Regime Slabs?

Standard deduction of Rs 50,000 to salaried individuals, and deduction from family pension up to Rs 15,000, is currently allowed only under the old regime. It is also proposed to allow these two deductions under the new regime. Read More

Feb 02, 2023 15:54 IST

New Income Tax Regime vs Old Regime, Which One Should You Choose In FY24?

Though the new tax regime will now become the default tax regime in 2023-24, taxpayers will still have the choice to opt for the old one. Here’s a quick guide for you to decide on which tax regime to opt for in 2023-24 as per your income. Read More

Feb 02, 2023 15:53 IST

Announced In Budget 2023: What Is Mahila Samman Saving Certificate?

Mahila Samman Saving Certificate is a one-time new small savings scheme of the government of India announced in the Budget 2023. Check Full Details

Feb 01, 2023 20:09 IST

Income Tax Slabs Comparison After Budget 2023: Taxes Under Old Regime vs New Regime

Finance Minister Nirmala Sitharaman on Wednesday overhauled the income tax regime and introduced changes in order to provide relief to the “hard-working” middle-class, especially the salaried class, in the Union Budget 2023-24. Here’s the detailed comparison of the existing tax regime and proposed tax regime, and the tax savings in the financial year 2023-24. Read More

Feb 01, 2023 19:02 IST

Budget 2023 Highlights: Are You Under New Tax Regime?

Delivering on the expectations of the aam aadmi, Finance Minister Nirmala Sitharaman today announced Income Tax relief for the salaried class with an eye on the mega 2024 elections as well as several state battles as she delivered the Union Budget 2023 speech. Sitharaman, who sought to drum up support for the new tax regime, announced that there would be no income tax up to Rs 7 lakh in the regime. Read More

Feb 01, 2023 17:46 IST

Opinion | Great Budget for CapEx and Railways, Not Bad for Direct Taxes

Finance Minister Nirmala Sitharaman began her speech by calling Budget 2023 the first one in Amrit Kaal. The reference and indeed, the implicit branding, is towards the next 25 years, during which India is expected to change for the better. India will become a $20,000 trillion economy over the period, with a reasonable per capita income as well. Read More

Feb 01, 2023 17:40 IST

Income Tax Slab: New Regime Will Benefit People, Says Sitharaman

In an interview to DD News, Union Finance Minister Nirmala Sitharaman said, “When we talk about this budget, this is the first budget of Amrit Kaal. We have given preferences to common man of society…Old regime of taxation is complicated and new regime will be helpful and benefit the people. We have raised tax slabs and surcharges also has been reduced in new regime. The new system will be default system but any one can opt for old system.”

Feb 01, 2023 17:20 IST

Income Tax Slab: Govt Not Forcing Anyone to Move from Old to New, But…, Says Sitharaman

Finance Minister Nirmala Sitharaman on Wednesday said that the government is not forcing anyone to move from the old tax regime to the new but the latter is attractive as it gives greater rebates. Addressing a press conference after presenting the Budget 2023, Sitharaman said four emphasis points of this budget are empowering women, an action plan for tourism, initiatives for Vishvakarmas (artisans) and green growth. Read More

Feb 01, 2023 17:07 IST

Budget 2023: After Defence, Road & Railway Ministries Bag Highest Allocations from FM

The Union Budget 2023-24 has prioritised infrastructure development as the Ministries of Road Transport and Highways (MoRTH) and Railways bagged highest allocation after the Defence Ministry. Also, the allocation to these two ministries has registered significant rise from the past, data analysed by News18 shows. Read More

Feb 01, 2023 17:05 IST

Budget 2023 Highlights: Gold, Cigarette, Imported Cars to be Dearer | Check Here

Fully imported cars, including electric vehicles, and those assembled in India with imported parts will also become costlier with Sitharaman increasing customs duty.

Budget 2023 Highlights: Gold, Cigarette, Imported Cars to be Dearer | Check Here

Feb 01, 2023 17:02 IST

Budget 2023 Highlights: TV, Mobile to be Cheaper | Check Details

Mobile phones and TV sets manufactured in India would become cheaper with Sitharaman announcing cuts in Basic Customs Duty (BCD) on import of their components.

Budget 2023 Highlights: TV, Mobile to be Cheaper | Check Details

Feb 01, 2023 16:58 IST

Income Tax Slab: 'Substantial Changes' Made in Personal I-T in Budget, Says Sitharaman

Finance Minister Nirmala Sitharaman said the government has made the new income tax regime more attractive for taxpayers and has thus brought about “substantial changes” in its structure for the benefit of the middle class. The budget 2023-24 has proposed changes in the optional tax regime, which was introduced in 2020-21.

Speaking to reporters after presentation of the Budget, she said the country has been waiting for a direct tax regime which is simplified and easy in compliance. “The personal income tax has had substantial changes (in the Budget) which will benefit the middle class. The new taxation regime has now got greater traction and incentive so that people can now unhesitatingly move to the new regime from old,” the finance minister said.

Feb 01, 2023 16:47 IST

Budget 2023 Highlights: Indian Sports Receives Highest Ever Allocation in Budget 2023 | Details Here

India’s finance minister Nirmala Sitharaman unveiled the budget for the 2023-24 fiscal year at the parliament on Wednesday and the sports sector is set to receive its highest-ever allocation of a whooping sum of Rupees Rs 3,397.32 crores. The spike in the allocation accounts for an increase of over Rupees 700 Crores from the previous fiscal year. Read More

Feb 01, 2023 16:43 IST

Budget 2023: Sitharaman Announces UIDF With Annual Rs 10k-cr Allocation

A Urban Infrastructure Development Fund (UIDF) will be set up to ramp up infrastructure in tier-2 and tier-3 cities with an annual allocation of Rs 10,000 crore, Union Finance Minister Nirmala Sitharaman announced today. She said states will be encouraged to leverage resources from the grants of the 15th Finance Commission, as well as existing schemes, to adopt appropriate user charges while accessing the UIDF. “Like the RIDF, an Urban Infrastructure Development Fund will be established through the use of priority sector lending shortfall,” she said.

Feb 01, 2023 16:26 IST

Budget 2023: Sitharaman Calls New Tax Regime 'Attractive' As It Gives 'Greater Rebates'

Addressing a press conference, Union Finance Minister Nirmala Sitharaman said, “The new taxation regime has now got greater incentives and attractions so that people can unhesitatingly move from the old to the new. We are not compelling anyone. But the new one is now attractive as it gives greater rebates.”

Feb 01, 2023 16:22 IST

Budget 2023: Sitharaman Addresses Media, Says Have Tried to Empower Women

Addressing a press conference, Union Finance Minister Nirmala Sitharaman said, “Through the budget, we have tried to empower women. This budget is beautifully balanced and will benefit middle class segment. India is moving towards an industrial revolution and we are looking to improve industrial sector.”

Feb 01, 2023 16:15 IST

Budget 2023 PDF Download: Read and Save Nirmala Sitharaman's Full Budget Speech in PDF Format

Union finance minister Nirmala Sitharaman today presented the Budget for financial year 2023-24. The budget speech was keenly observed to understand the vision of the Modi government for the next fiscal. The budget document of the government was revealed by Sitharaman in a speech covering different sectors of the economy. She announced new initiatives and overhauled some, while outlining the priorities of the government. Read More

Feb 01, 2023 16:11 IST

Budget News: No Capital Gains Tax If Physical Gold Converted to E-gold Receipt and Vice Versa, Says Sitharaman

The government has said there won’t be any capital gain tax if physical gold is converted to an Electronic Gold Receipt (EGR) and vice versa. Announcing this in her Budget speech for the 2023-24 fiscal, finance minister Nirmala Sitharaman said, “The conversion of physical gold to Electronic Gold Receipt (EGR) and vice versa is proposed not to be treated as a transfer and not to attract any capital gains.” This would promote investments in electronic equivalent of gold, she added.

EGRs are depository gold receipts traded on the stock exchanges. Under this form, investors buy the gold in dematerialised form and are given gold receipts instead of physical gold. The BSE was the first stock exchange to launch EGRs on its platform, according to news agency PTI.

Feb 01, 2023 16:00 IST

Budget 2023: New Income Tax Rules, Capex Increase, FM’s Speech Had It All Under 90 Minutes

Finance minister Nirmala Sitharaman presented her fifth Union Budget 2022-23 today ahead of the crucial 2024 Lok Sabha elections that lasted for nearly 1 hour 25 minutes. The biggest takeaway from her speech was the shake-up in the new tax regime for the middle class. The government announced zero income tax for those earning up to Rs 7 lakh from the earlier Rs 5 lakh under the new regime. It also proposed to reduce highest surcharge rate from 37% to 25%. Also, the limit of 3 lakh on leave encashment increased to 25 lakh. Read More

Feb 01, 2023 15:59 IST

Union Budget Highlights: Focus on Youth

Union Budget Highlights: Focus on Youth


Noting that currently, individuals with a total income of up to Rs 5 lakh do not pay any tax due to rebates under both the old and new regimes, the Finance Minister also tweaked the concessional tax regime, which was originally introduced in 2020-21, by hiking the tax exemption limit by Rs 50,000 to Rs 3 lakh and reducing the number of slabs to five.

Union Budget 2023 was tabled on Wednesday, February 1, in which Finance Minister Nirmala Sitharaman announced various modifications to the personal income tax regime. Income tax is an important aspect of financial planning for working professionals, and with the new financial year approaching, it’s important to start thinking about ways to save taxes.

What Is Income Tax?

The term “income tax” refers to a type of direct tax imposed by governments on income generated by businesses and individuals within their jurisdiction. As per law, individuals earning more than a certain amount of money are obliged to file their income tax return annually. These taxes are a source of revenue for governments, and this money is used to fund public services and fulfil government.

Salaried employees are one of the major tax contributors in India. When it comes to Budget, the one thing that these individuals look forward to the most is the income tax rebate. The income tax slabs have not been changed since 2014 when the basic personal tax exemption limit was last revised.

In budget 2020, FM Sitharaman introduced a new tax regime, however, it remains optional for taxpayers.

What Are Old & New Tax Regimes?

Common Factors: Income up to Rs 2.5 lakhs per annum is exempt from taxation under both regimes, while income between Rs 2.5 to Rs 5 lakh per annum is taxed at the rate of 5 per cent.

Differences: Under the new slabs, personal income from Rs 5 lakh to Rs 7.5 lakh per annum is taxed at a rate of 10 per cent, while it is taxed at a rate of 15 per cent under the old regime.

Income between Rs 7.5 lakh to Rs 10 lakh per annum is taxed at a rate of 15 per cent under the new regime. It is taxed at a rate of 20 per cent in the old regime.
Under the old regime, personal income above Rs 10 lakh per annum are taxed at a rate of 30 per cent.

However, there are three slabs for income above Rs 10 lakh in the new regime. Personal income between Rs 10 lakh to Rs 12.5 lakh is taxed at a rate of 20 per cent, between Rs 12.5 lakh to Rs 15 lakh at 25 per cent, and above Rs 15 lakh at a rate of 30 per cent.

Budget Expectation

The lesser tax one has to pay, the more disposable income one can have. While taking advantage of the tax-saving options available, one can save a significant amount of taxes.

More Tax Exemption or Rebate: In the Budget 2023, there is an expectation that the government might give relief to individual taxpayers by raising tax exemptions or rebate limits. Under both old and new tax regimes, if the total salary of an individual is below Rs 5 lakh in a year, it is tax-free.

However, it is a rebate under Section 87A, not an exemption. If the salary goes above Rs 5 lakh in a year, the tax on the whole amount except the exemption limit of Rs 2.5 lakh will be applicable. Now, there are demands for raising the exemption limit to Rs 5 lakh.

Increased Tax Deduction Limit: There are also demands to raise the deductions limit under Section 80C, compared with Rs 1.5 lakh currently.

Income tax deductions are related to specific deductions that a taxpayer is eligible for on account of investments made (Section 80C) or the sum expended (Section 80D or Section 80E).

The real estate sector is also urging the government to provide a separate deduction for realty purchases, apart from Section 80C. The current 80C limit was fixed about a decade ago.

More Home Loan Tax Incentives: People are also anticipating an increase in tax exemptions on home loan principal and interest payments. Currently, the maximum tax deduction that can be claimed on a home loan interest payment is Rs 2 lakh per FY on a self-occupied property.

However, due to the rise in property prices and inflation over the years, there is a demand for the tax saving cap of Rs 2 lakh on housing loans as per section 24(b) needs to be increased.

Long-term capital gains (LTCG) tax relief: There are also expectations that the government would provide long-term capital gains (LTCG) tax relief to retail mutual funds and stock investors in the market through Budget 2023.

Work-from-home allowance & Layoff policy: In the Budget 2023, experts also hope that the government announcements will bring some stability to the job market shaken by the Covid-19 pandemic and increased pressure due to inflation and fear of recession. The industry fraternity is also expecting the Centre to announce regulations on issues like Work from Home allowance, notice periods, severance pay, job retention and support, and regulations for layoffs.

Additionally, the government can also issue notification outlining the tax consequences of moonlighting.

Increase in Health Care Expense Deduction: Healthcare insurance coverage has become essential, particularly following the Covid-19 pandemic. However, insurance costs have been on the rise. With the budget 2023, the common man is expecting the government will consider increasing the Section 80D deduction limit, which allows for tax deductions on health insurance premiums. An increase in this limit would provide much-needed relief and support to individuals.

Currently, the limit is Rs 25,000 for non-senior citizens and Rs 50,000 for senior citizens.

Union Budget 2023: Date & Time

FM Sitharaman presented the Budget 2023-24 on February 1 at 11 am. This was Sitharaman’s fifth straight budget as the Finance Minister for the fiscal year beginning April 1. This is also the last full budget of the Prime Minister Narendra Modi-led Central government ahead of the 2024 Lok Sabha polls and was delivered in paperless forms, like the two previous ones.

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