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Income Tax Slabs Live Updates: Tax rebate limit raised, number of slabs reduced. Key personal tax announcements

Income Tax Slabs Budget 2023-24 Live Updates: Key personal income tax changes announced in Budget 2023

Finance Minister Nirmala Sitharaman holds a folder-case containing Union Budget 2023-24 outside the Finance Ministry at North Block, in New Delhi.

Finance Minister Nirmala Sitharaman presented the Union Budget for 2023 in the Parliament on Wednesday, the last full-year budget before the national elections in 2024 and key state elections later this year. In a relief to taxpayers, the FM proposed to change the tax structure in the new personal income tax regime by reducing the number of slabs to 5 and increasing the tax exemption limit to 3 lakh.

01 Feb 2023, 11:14 PM IST Happy that govt didn't give into pressures: Co-founder, MIRA Money

"Happy that the Government didn’t give in to the pressure from the middle class. Though there has been a revision in the income tax slabs for the salaried class, the income Tax regime needs a massive change. We need a clear rollout plan toward a simpler, more effective, and inclusive income tax regime," said Anand K Rathi, Co-founder, MIRA Money

01 Feb 2023, 10:40 PM IST Maximum tax rate on personal income reduced

The maximum tax rate of personal income tax comes down to 39% which was earlier 42.74%.

01 Feb 2023, 09:52 PM IST Government's objective is to simplify income tax for people: CEO Tax2win

"As expected, this year after a long wait, the budget finally focused on the middle-class/ salaried class/ small business category taxpayers of India. The introduction of new slabs with lesser tax rates under the new tax regime as well as the announcement of introducing a single simplified common ITR form in the future, clearly shows the government's objective to simplify the income tax for the common people. For small businesses and professionals also, the threshold limit for presumptive business income has been increased, which will not just reduce the compliance burden for them but ensure more people do the compliance. Further, no tax is levied up to 7 Lakh of income, a big relief for millions of salaried individuals," Abhishek Soni, Co-founder & CEO, of Tax2win said 

01 Feb 2023, 09:09 PM IST New Tax regime good option to avoid hassles: Founder of Clear  

“Taxpayers who want to avoid the hassles of claiming traditional deductions, who usually do not opt for HRA or claim other reimbursements via an employer or do not want to invest in traditional 80C, may now see the new regime as an option," Archit Gupta, Founder, and CEO, Clear said.

01 Feb 2023, 08:51 PM IST Personal income tax collections projected to rise by 10.4% next fiscal

The collection through personal income tax is estimated at 8.15 lakh crore for fiscal year 2022-23 and are projected to rise by 10.4% next year and reach 9 lakh crore

01 Feb 2023, 08:39 PM IST New tax regime is better: Experts 

A taxpayer saves more taxes under the new tax regime. It needs to be noted that this would be without any deductions that are available in old regime. Read More 

01 Feb 2023, 07:35 PM IST No income tax for Agniveers, FM makes key announcement in the Budget

Union Budget 2023: ‘Agniveers’ that were recruited under the "Agnipath' scheme, has now become eligible for tax relief, according tot he Union Budget presented by Finance Minister Nirmala Sitharaman on Wednesday, 1 February, 2023. Finance Minister Nirmala Sitharaman on Wednesday during her Union Budget speech 2023 said that the payment received by the ‘Agniveers’ from the Agniveer Corpus Fund is proposed to be exempted from taxes. Read here

01 Feb 2023, 07:21 PM IST Expert view on Budget

"We are happy that the Union Budget has reduced the compliance burden by mandating that PAN be a common business identifier. Moves to empower SEBI to develop, regulate and enforce norms for education in the National Institute of securities markets will enhance financial inclusion in the country. The budget paves the way for more ease of doing business and will help drive the entrepreneurial spirit of the country. The Government’s resolve to keep fiscal deficit targets combined with RBI's efforts to bring inflation within tolerable limits will reassure investors and consolidate India’s position as an attractive investment destination. The start-up tax exemption for another year will help the sector grow, especially in a challenging macro climate. Focus on simplified KYC, Digi locker for businesses and National Data Governance Policy will reduce the compliance burden and provide data for research this helping start-ups focus on building great products. The revised tax slabs will result in higher disposable income, helping in better savings and additional spending, a win-win for the economy," said Vikas Jain, CIO and Co-founder, Multip

01 Feb 2023, 07:09 PM IST New tax relief on conversion of physical gold to e-gold that you should know

Finance Minister Nirmala Sitharaman today announced that there would be no capital gain tax levied if physical gold is converted to Electronic Gold Receipt (EGR) or e-gold and vice versa. The finance minister said that the move would promote gold investors to move towards electronic equivalence of gold. The finance minister made the announcement while presenting the Union Budget 2023 on Wednesday while delivering the budget speech in the parliament. Find more here

01 Feb 2023, 06:46 PM IST Expert on new tax regime

 

“Focus on new tax regime – Budget is clearly trying to drive more tax payers to the new tax regime for which additional benefits have been provided. No changes have been proposed for the old tax regime. In fact, the new tax regime is now the default option for tax payers, although they have the choice to opt for the old tax regime. Given the focus on the new tax regime, it seems unlikely that in the near future, any additional benefits / exemptions will be provided to tax payers opting for the old tax regime," said Dhaval Kapadia, Director – Managed Portfolios, Morningstar Investment Adviser India

01 Feb 2023, 06:07 PM IST Proceeds from life insurance policy with premium of over ₹5 lakh to be taxable

Proceeds from life insurance premium over the annual premium of 5 lakh would be taxable from new financial year i.e. from 1st April 2023. However, the finance minister made it clear that the new income tax rule will keep death benefit on such premium would continue to remain tax exempted. She also announced that the new income tax rule won't be applicable on ULIP (Unit Linked Insurance Plan). Find out here

01 Feb 2023, 05:59 PM IST As personal income tax rebate increase to ₹7 lakh, more disposable income to buy home

01 Feb 2023, 05:35 PM IST Making new tax regime default option 'grossly unfair': Congress

Making new tax regime default option 'grossly unfair', will rob ordinary taxpayers of meagre social security under old regime: Congress

01 Feb 2023, 05:04 PM IST Old vs new income tax slabs after Budget: Which is better?

New income tax slabs have been made as a default tax regime in Budget 2023, though, the old one has not been abolished. Therefore, taxpayers now have two options. But, which one is better? Find out here

01 Feb 2023, 04:45 PM IST Will push for New Tax Regime take away the charm of tax saving?

Finance Minister Nirmala Sitharaman has brought cheer to the middle class by introducing widespread changes to the income tax structure, by changing the slabs, raising the rebate level and providing incentives to those falling under higher brackets. However, there is a catch! The Budget incentives can only be enjoyed by those who opt for the new tax regime. Mint decodes in this story

01 Feb 2023, 04:38 PM IST Income Tax: ‘New regime is attractive because it gives a greater rebate’

“We are not compelling anybody. Those who want to remain in Old can still remain there. But the new one is attractive because it gives a greater rebate. It also provides for simplified & smaller slabs, smaller lower rates of taxation & also slabs which are nicely broken down," said FM in the post-budget press conference

01 Feb 2023, 04:34 PM IST No capital gains tax if physical gold converted to e-gold receipt and vice versa: FM

The government on Wednesday 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." Read here

01 Feb 2023, 04:08 PM IST Proposal for PAN card holders

Finance Minister Nirmala Sitharaman has proposed to use PAN card as as a common identifier for all digital system at government agencies. The move is expected to simplify KYC process and make it simple for the Income Tax Department and other government agencies to manage documents of the PAN cardholders. Details

01 Feb 2023, 04:01 PM IST What changes in income tax mean for taxpayers

"Though the new tax system will be the default, taxpayers could choose the previous one. In the new tax system, the FM has also decreased the number of tax slabs. The government has reduced the surcharge of the highest rate from 37% currently to 25% in new tax regime. A salaried person currently has the choice to choose the old tax system and keep using the standard tax deductions and exemptions. Otherwise, he or she might choose the new, more favourable income tax system, which does not offer any typical tax breaks or exemptions. The person will have to forego 70 tax deductions and exemptions under the new tax law, such as the HRA tax deduction, LTA tax deduction, Section 80C deduction of up to Rs. 1.5 lakh, and so on. For people who were unable to take use of the existing tax deductions and exemptions, a new tax regime was announced. Additionally, it assists in reducing the burden of compliance for salaried taxpayers. The benefit in tax slab may give rise to savings and overall investment in the economy," said Manish Khanna, Co-Founder, of Unlisted Assets

01 Feb 2023, 03:41 PM IST Budget 2023: Key announcements in 10 points

Capex bazooka, tax bonanza and jobs push ahead of 2024 elections - Budget 2023 in 10 points: Read here

01 Feb 2023, 03:22 PM IST Does the old tax regime still exist?

The new tax regime has been announced as a default tax regime with a host of benefits. But does that mean the old tax regime has ended? Find out in this story

01 Feb 2023, 03:01 PM IST Experts on leave encashment tax exemption 

“Any opportunity that gets created for senior citizens to increase their retirement corpus is a welcome one. The proposal to raise tax exemption on leave encashment on retirement is a positive move in that direction," said Caroline Kulkarni, Head of Human Resources, Sanctum Wealth.

"Considering that the exemption limit was set in 2002 and has not undergone any revision since then, it has now been revised in this Budget, the proposed revision will help the employees in getting more dispensable income in their hand since now upto Rs. 25 lakhs such leave encashment will be non-taxable in their hands," said Saurrav Sood, Practice Leader – International Tax & Transfer Pricing, SW India

01 Feb 2023, 02:53 PM IST Income tax benefit for startups

The government proposed an extension of the date of incorporation for income tax benefits to start-ups from March 31, 2023, to March 31, 2024. Check here

01 Feb 2023, 02:25 PM IST Leave encashment tax exemption limit hiked

Finance Minister Nirmala Sitharaman on Wednesday proposed to hike tax exemption on leave encashment on retirement of non-government salaried employees to 25 lakh from 3 lakh. Read details in this story

01 Feb 2023, 01:44 PM IST New tax regime takes over

“The new tax regime has got a great boost by the Budget announcements made by the FM. Taxpayers at both ends of the spectrum will be encouraged under the new regime, as there will be no liability upto annual income of 7 lacs on 1 hand & surcharge on annual income above 5 crores has been reduced from 37 to 25% at the high income end," said Alok Agrawal, Partner, Deloitte India

01 Feb 2023, 01:31 PM IST Tax rebate limit raised: What it means

"In simple words, the enhancement of this limit to seven lakh rupees means that the person whose income is less than Rs.7 lakhs need not invest anything to claim exemptions and the entire income would be tax-free irrespective of the quantum of investment made by such an individual. This will result in giving more consumption power to the middle-class income group as they could spend the entire amount of income without bothering too much about investment schemes to take the benefit of exemptions" explained Abhishek A Rastogi, Founder of Rastogi Chambers

01 Feb 2023, 01:25 PM IST Income tax changes cost to govt

The income tax changes rolled out to cost the govt revenue of about 38,000 crore. As a result of these proposals, revenue of about 38,000 crore – 37,000 crore in direct taxes and 1,000 crore in indirect taxes – will be forgone while revenue of about 3,000 crore will be additionally mobilized. Thus, the total revenue forgone is about 35,000 crore annually

01 Feb 2023, 01:22 PM IST Tax on income from insurance policies

Income above 5 lakh from insurance policies will be taxed

01 Feb 2023, 01:19 PM IST Proposal for the salaried class and the pensioners

Proposal for the salaried class and the pensioners including family pensioners, for whom proposed to extend the benefit of standard deduction to the new tax regime. Each salaried person with an income of 15.5 lakh or more will thus stand to benefit by 52,500: FM

01 Feb 2023, 01:00 PM IST Tax exemption on Leave Encashment limit

The limit of 3 lakhs for tax exemption on Leave Encashment limit raised to 25 lakhs

01 Feb 2023, 12:56 PM IST Maximum tax rate

“The Current tax rate in country is 42.74%, among the highest in world. Budget 2023 proposes to reduce the highest surcharge rate from 37% to 25% in the new Tax regime This will result in the reduction of the maximum tax rate to 39%."

01 Feb 2023, 12:40 PM IST Income Tax Live: Key announcements

5 major announcements -

Tax rebate limit raised to 7 lakh from 5 lakh

New personal tax regime

0 to 3 lakh: Nil

3 lakh - 6 lakh: 5%

6 lakh - 9 lakh: 10%

9 lakh - 12 lakh: 15%

12 lakh - 15 lakh: 20%

15 lakh - above: 30%

New Income Tax regime to be default regime, will have option to choose old regime

To reduce the highest surcharge rate from 37% to 25% in the new Tax regime. This will result in the reduction of the maximum tax rate to 39%.

01 Feb 2023, 12:29 PM IST New Income Tax regime to be default regime

New income tax regime the default tax regime but citizens can continue to opt Maximum marginal rate reduced to 39% with reduction in surcharge

01 Feb 2023, 12:28 PM IST Tax announcements 

0-3 lakh nil

3-6 lk 5%

6-9 lk 10%

9-12 lk 15%

12-15 lk 20%

above 15 lk - 30%

01 Feb 2023, 12:23 PM IST Personal income tax 

 Propose to increase the rebate to 7 lakh from 5 lakh: FM

01 Feb 2023, 12:17 PM IST On direct taxes

- 16% increase in National Calamity Contingency on certain cigarettes

- Average processing time for income tax returns reduced from 93 days to 16 days

- Startups: Date of incorporation tax benefits extended to 31 March 2024 from 31 March 2023

- Lower tax rate for new cooperatives: Relief of almost 10,000 crore for sugar cooperatives

01 Feb 2023, 12:13 PM IST Fiscal deficit

Fiscal deficit for FY23 at 6.4% of GDP

Fiscal deficit target for FY24 at 5.9%

Fiscal deficit glide path for FY26 is 4.5%

01 Feb 2023, 12:11 PM IST Indirect taxes

"I propose to reduce the number of basic custom duty rates on goods other than textiles and agriculture, from 21% to 13%. As a result, there are minor changes in the basic custom duties, cesses & surcharges on some items including toys, bicycles, automobiles."

01 Feb 2023, 12:04 PM IST Reclaiming shares and dividends

Reclaiming shares & dividends from investor protection authority, integrated IT portal to be established: FM

01 Feb 2023, 12:03 PM IST 'Permitting acquisition financing by IFSC units of foreign banks'

“Permitting acquisition financing by IFSC units of foreign banks. National Financial Information Registry to promote credit, facilitate inclusion. NFIR to be designed in consultation with the Reserve Bank of India (RBI)."

01 Feb 2023, 12:00 PM IST National Hydrogen Mission

19,700 crore allocated to the National Hydrogen Mission, to reach hydrogen production capacity of 5 metric million tonnes by 2030

01 Feb 2023, 11:54 AM IST Natural Farming 

Over the next 3 years, one crore farmers will get assistance to adopt natural farming. 10,000 bio input resource centres will be set up: FM Nirmala Sitharaman

01 Feb 2023, 11:50 AM IST Energy transition

35,000 crores priority capital for the energy transition; Battery storage to get viability gap funding: FM Nirmala Sitharaman

01 Feb 2023, 11:41 AM IST Income Tax Live: KYC process to be simplified

More than 39000 compliances have been reduced and 3400+ legal proceedings have been decriminalised to enhance Ease of Doing Business. Furthermore, PAN card to be used as a common business identifier. KYC process to be simplified, announces FM Sitharaman

01 Feb 2023, 11:39 AM IST PM Awas Yojana fund

PM Awas Yojana fund increased by 66% YoY to 79,000 crore for FY24 to boost demand of cables and wires

01 Feb 2023, 11:37 AM IST Capex outlay announcement ‘positive’ for CVs

The Capital Investment Outlay announcement is a positive development for domestic commercial vehicle (CV) space and more so for Medium and Heavy Commercial Vehicle (M&HCV) domain. Positive for Tata Motors and Ashok Leyland: ICICIDirect

01 Feb 2023, 11:34 AM IST Capex outlay

Capital expenditure outlay is being increased by 33% to 10 lakh crore — 3.3% of GDP. This will be 3 times the outlay in FY19: FM

01 Feb 2023, 11:29 AM IST Income Tax Live: Primitive Vulnerable Tribal Group Development Mission

Rs15,000 crore over the next three years for a new scheme - Primitive Vulnerable Tribal Group Development Mission. “Will saturate these communities and their habitations with safe housing, clean drinking water and sanitation, road and telecom connectivity and access to education and healthcare institutions. This will be part of a development action plan for scheduled tribe."

01 Feb 2023, 11:28 AM IST Atmanirbhar Clean Plant Programme

The government will launch the Atmanirbhar Clean Plant Programme to improve availability of disease-free quality planting material for high-value horticultural crops at an outlay of 2,200 crore

01 Feb 2023, 11:23 AM IST First budget in Amrit Kal

"This is the first Budget of Amrit Kaal," Finance Minister Nirmala Sitharaman said in her opening remarks, referring to the Modi government's "New India" mantra. Read here

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