Budget 2023: The hits and misses for taxpayers on the personal tax front4 min read . Updated: 05 Feb 2023, 03:26 PM IST
- On the personal income tax front, the Hon'ble Finance Minister. Smt Nirmala Sitharaman made 5 major announcements for individuals in Budget 2023.
On the personal income tax front, the Hon'ble Finance Minister. Smt Nirmala Sitharaman made 5 major announcements for individuals in Budget 2023. The announcements are under the new tax regime the rebate limit has been hiked to ₹7 lakhs from ₹5 lakhs, reduced number of slabs to five and increased the tax exemption limit to ₹3 lakh under the new tax regime, salaried taxpayers are now eligible for the standard deduction of Rs. 50,000 and a deduction from family pension up to Rs. 15,000 under the new tax regime from FY 2023-24, in the new tax regime, the maximum surcharge rate was reduced from 37 to 25 percent, and the non-government salaried employee leave encashment tax exemption ceiling was raised to ₹25 lakh. However, based on an exclusive interview with experts Aparna Khatri, Consulting Director, Salika Kothari, Senior Manager & Dhaval Shah, Senior Consultant at Rajeshree Sabnavis & Associates, they claim that Budget 2023 has a number of wins and misses on the personal tax front. They said considering the upcoming 2024 General Elections, the odds of the current Budget being a populist one were high. However, the FM exercised restraint and has been cautious in doling out benefits to individual taxpayers. Listed below are the key areas where the FM met the taxpayer expectations and some which were missed.