138:
20:
122:
advantage of tax deductions. As per expert analysis, tax-advantaged retirement savings instruments had significant popularity among middle-class taxpayers which made the old regime look more appealing. Given the crucial role of these investments in ensuring social security, a majority of taxpayers had already subscribed them. Terminating an existing commitment such as a
358:
had the opportunity to alternate between the two regimes on an annual basis. However, those who possessed business income were restricted to a single opportunity to make such a selection. The financial markets suffered losses on the day of Budget as the high-expectations on capital market reforms were not met by the
Finance Minister. Market index
109:
who do not have any deduction instruments under
Chapter IV-A. But the majority of taxpayers who were living in rented accommodations and claiming HRA along with other deductions were not disincentivized to opt for the New Tax Regime. It was seen as deterrent for opting small saving schemes which are popular among the masses.
357:
Following the implementation of the new proposals for the financial year 2020–21, tax consultants said New Tax Regime did not result in simplification as anticipated. Instead there was a need calculate individual taxes under both regimes to determine which one is more advantageous. Salaried taxpayers
388:
The government's tax policy for the near future was clearly outlined which indicated that all tax breaks will be gradually eliminated while maintaining a low tax rate. Any necessary support for the economy shall be provided through increased public spending, which has been shown to produce superior
159:
Under the Old Tax Regime, individuals earning up to ₹5 lakh were exempt from paying income tax. There is an increase in the rebate limit by ₹2 lakh within the framework of the New Tax Regime. This would effectively exempt individuals with incomes up to ₹7 lakh from any tax obligations under the new
309:
The implementation of improved limits in tax slabs is said to provide significant relief to taxpayers under the new regime. For instance, an individual with an annual income of ₹9 lakh will only be required to pay ₹45,000, which amounts to a mere 5% of their income. This represents a 25% reduction
108:
Individuals who were at the outset of their professional journey starting anew and yet are interested in a streamlined approach found this New Tax Regime attractive. This regime appeared to provide benefits to taxpayers who reside with their parents, those who are debt-free of home loan, and those
121:
The government implemented the new tax regime with the expectation that the changes in tax brackets would occur in a gradual rather than sudden manner. Despite the simplified mechanism and reduced tax burden of the New Tax Regime, taxpayers were still choosing to opt for the old regime and took
85:
The Union Budget proposed a simplified personal income tax regime aimed at providing substantial relief to individual taxpayers and streamlining the Income-Tax law. Under this optional New Tax Regime, individual taxpayers who chose to forgo specific deductions and exemptions would benefit from
327:
It was proposed to cut highest surcharge rate to 25% from existing 37.5% under New Tax Regime for income exceeding ₹2 crore. This proposal would lead to a decrease in the maximum tax rate from the current 42.74% to 39%, which is one of the highest in the world. It is important to note that no
47:
which brought five significant changes in the earlier existing (FY 2022–23) income tax policy. Improved rebate, modified tax structure/slabs, reduced surcharges, higher exemption on leave encashment for retirees in private-sector and extension of standard deduction in the New Tax Regime were
354:, as of 2020, only 4 percent of Indian citizens pay income tax, yet they contribute to 41 percent of the total private consumption expenditure in the country. The Finance Minister in 2020 stated implementation of New Tax Regime would have a loss of ₹40,000 crore per annum to the exchequer.
39:
first proposed in Union Budget 2020–21. Subsequent Budget of FY2021-22 did not see any major announcements in this regime. During the Budget 2022–23, reports emerged that New Tax Regime was getting poor response and
Government is considering to make it more attractive among the taxpayers.
336:
The proposed budget entails an extension of the limit of tax exemption on leave encashment to ₹25 lakh for non-government salaried employees upon retirement, aligning it with the government salaried class. In the Old Tax Regime, the maximum amount eligible for exemption stood at ₹3 lakh.
318:
This proposal offers significant relief to the salaried class and pensioners, including family pensioners, through the extension of the standard deduction benefit to the new tax regime. Individual can forego ₹75,000 in total taxable income while ₹25,000 can be claimed in family pension.
81:
The notion that millennial generation exhibit a proclivity towards spending rather than saving appears to have seemingly prompted the implementation of this New Tax Regime framework to boost consumption thereby helping combat the deceleration of economic growth during the time.
376:
While forgoing key tax exemptions results in modest increase in the disposable income of only a small section of taxpayers, the
National Statistical Office (NSO) data on the decline in net savings among Indian households is at 8-year low of 6.5% of Indian GDP is alarming.
101:. However, the tax breaks that will not be available under the new tax regime are deductions like those in section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc. under Chapter IV-A of
112:
According to experts, taxpaying citizens might refrain from investing and instead choose to adopt a new tax regime. However, such a decision could potentially lead to the demise of their savings habit, which would be detrimental to the general populace.
310:
from the current tax liability of ₹60,000. Similarly, an individual earning ₹15 lakh will be required to pay only ₹1.5 lakh, which is equivalent to 10% of their income. This represents a 20% reduction from the existing liability of ₹1,87,500.
68:
Grappling with significant income disparities, India appeared to be prompting the policy regime to prioritize the expansion of the taxpayer base and incentivize new taxpayers to contribute to the national treasury. As per data released by the
389:
outcomes. This announcement provides a definitive indication of the government's intentions regarding taxation, and suggests a shift towards a more fiscally responsible approach that prioritizes public investment over tax incentives.
150:
The proposed Union Budget 2023-24 budget aims to establish the New Tax Regime as the primary tax system, while still allowing the salaried-class taxpayers the choice to opt for the Old Tax Regime and its associated benefits.
867:
137:
305:
Reducing the earlier six payable slabs for computing individual income tax to five in the New Tax Regime, the
Finance Minister proposed higher threshold limit of ₹3 lakh from existing ₹2.5 lakh for taxpayers. new Slab
764:
635:
1101:
894:
1074:
919:
437:
134:, which is eligible for deduction in Old Tax Regime. Simultaneously, the New Tax Regime lacks provisions for deductions on such savings, thereby diminishing its appeal.
553:
385:
FY2021-22 was an uneventful year for the New Tax Regime as no new changes were announced except the relaxation of Income Tax filing for senior citizens over 75 years.
816:
1049:
583:
971:
660:
608:
493:
1023:
789:
97:. Individuals or HUFs opting for New Tax Regime are not entitled to exemptions for leave travel, house rent, among others under the section 115BAC of the
712:
738:
369:
As per an analysis by the
Revenue Department, 91.7% of tax filers (about 5.3 crore out of 5.78 crore tax filers) claimed a cumulative deduction (
687:
997:
945:
328:
modifications to the surcharge have been suggested for individuals who choose to remain under the old regime within this income bracket.
946:"Budget 2020: Current Tax Slab Rates in India for FY 2020-21 | Nirmala Sitharaman: New Income Tax Regime But Lesser Exemptions"
466:
126:, after enrollment may prove challenging for taxpayers due to potential financial losses. Additionally, in the wake of the
373:) of less than ₹2 lakh and less than 1 per cent of all tax filers (nearly 3.7 lakh) claimed deductions of over Rs 4 lakh.
841:
842:"Union Budget 2023 income tax slabs: New tax regime is default, rebate increased from Rs 5 lakh to Rs 7 lakh"
1131:
765:"Here's why there is less adoption of the new tax regime and how budget 2022 can make it more attractive"
24:
44:
49:
531:
416:
102:
98:
409:"New Personal Income Tax Regime heralds significant relief, especially for Middle Class Taxpayers"
73:, a mere 3.8% of individuals aged over 20 in India paid income tax in the financial year 2018-19.
1136:
123:
70:
8:
408:
351:
57:
36:
523:
90:
53:
524:"MAJOR ANNOUNCEMENTS IN PERSONAL INCOME TAX TO SUBSTANTIALLY BENEFIT THE MIDDLE CLASS"
19:
371:
Sec 80 (C) + Sec 80 (D) + NPS + Loan
Interest Repayment + Standard Deduction + others
127:
95:
the government's intention to withdraw all Income-Tax exemptions in the long run
920:"Budget 2023: Big hike in tax exemption on encashed leaves for non-govt staff"
141:
Finance
Minister Nirmala Sitharaman before presenting the Union Budget 2023-24
1125:
790:"India proposes cuts in personal income tax rates under new taxation regime"
554:"India doesn't seem ready for the introduction of a flat income tax regime"
609:"Nirmala Sitharaman: Govt to remove all Income Tax exemptions in long run"
972:"New income tax rate: Will giving up HRA, LTA, Section 80C benefit you?"
494:"Govt may offer taxpayers incentives to shift to new income tax regime"
1050:"To switch or not: New income tax regime throws a googly at taxpayers"
130:
many taxpaying individuals have recognized the significance of having
868:"New Income Tax slabs FY 2023-24 and deductions allowed - check here"
739:"Budget 2022: Govt reviews new personal tax slabs, incentives likely"
131:
817:"Budget 2023: New tax regime and how it differs from old tax regime"
363:
1024:"Behind new Income Tax regime: 92% used exemption under Rs 2 lakh"
895:"Highest surcharge on personal income tax reduced from 37% to 25%"
998:"Budget 2020: Sensex crashes 988 points; Nifty slips to 11,644"
359:
331:
1102:"Govt to phase out tax breaks, focus more on public spending"
661:"Budget 2020: Should you switch to the new income tax slabs?"
584:"New tax regime gives with one hand, takes away with another"
23:
Central Board of Direct Taxes (CBDT), Department of
Revenue,
1075:"Budget 2021: No change in income tax slabs for individuals"
636:"Tax deductions, exemptions not available in new tax regime"
438:"Budget 2021: No change in income tax slabs for individuals"
713:"New income tax regime should be made more attractive"
634:
Kapoor, Pragati; Motiani, Preeti (19 February 2022).
362:
saw a dip of 988 points to close at 39,735.53 while
815:DH Web Desk, Shuvrajit Biswas (1 February 2023).
89:Union Minister for Finance and Corporate Affairs
1123:
467:"Centre's new tax regime has few takers: Report"
518:
516:
514:
403:
401:
633:
530:. Ministry of Finance, Government of India.
415:. Ministry of Finance, Government of India.
332:Leave Encashment for Private Sector Retirees
16:New Personal Income Taxation Policy in India
1100:Prasad, Gireesh Chandra (4 February 2021).
814:
511:
398:
76:
688:"New tax regime offers hardly any relief"
686:Sharma, Ashwini Kumar (1 February 2020).
43:The latest changes were presented in the
491:
461:
459:
136:
86:significantly reduced income tax rates.
18:
145:
1124:
1099:
685:
581:
577:
575:
60:'s Budget Session on 1 February 2023.
892:
456:
313:
492:Jayaswal, Rajeev (19 January 2022).
116:
572:
13:
582:PRASAD, RAVI RANJAN (2 Feb 2020).
14:
1148:
893:Kumar, Naveen (1 February 2023).
1093:
1067:
1042:
1016:
990:
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653:
627:
601:
546:
485:
430:
1:
392:
380:
345:
63:
322:
169:Individual Income Tax Slabs
7:
163:
10:
1153:
350:According to a report by
340:
154:
532:Press Information Bureau
417:Press Information Bureau
77:Introduction in FY20-21
283:₹12.5 lakh - ₹15 lakh
263:₹10 lakh - ₹12.5 lakh
142:
28:
27:, Government of India.
247:₹7.5 lakh - ₹10 lakh
140:
124:life insurance policy
71:Income Tax Department
22:
1002:www.fortuneindia.com
743:www.fortuneindia.com
231:₹5 lakh - ₹7.5 lakh
215:₹2.5 lakh - ₹5 lakh
146:Proposals in FY23-24
45:Union Budget 2023-24
1132:Income tax in India
299:₹15 lakh and Above
260:₹12 lakh - ₹15 lakh
244:₹10 lakh - ₹12 lakh
170:
37:Income tax in India
25:Ministry of Finance
1028:The Indian Express
899:The Economic Times
874:. 23 February 2023
846:The Indian Express
640:The Economic Times
613:The Indian Express
360:S&P BSE Sensex
314:Standard Deduction
296:₹15 lakh and Above
228:₹7 lakh - ₹10 lakh
168:
143:
91:Nirmala Sitharaman
54:Nirmala Sitharaman
29:
1030:. 3 February 2020
1004:. 6 February 2020
978:. 1 February 2020
952:. 1 February 2020
926:. 1 February 2023
848:. 1 February 2023
796:. 1 February 2023
719:. 30 January 2022
667:. 1 February 2020
615:. 1 February 2020
560:. 29 January 2021
473:. 10 January 2022
303:
302:
212:₹3 lakh - ₹7 lakh
128:COVID-19 pandemic
117:Status in FY22-23
48:announced by the
1144:
1117:
1116:
1114:
1112:
1097:
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801:
786:
780:
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777:
775:
769:Business Insider
761:
755:
754:
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750:
745:. 5 January 2022
735:
729:
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588:Deccan Chronicle
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50:Finance Minister
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924:Hindustan Times
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383:
366:was also down.
348:
343:
334:
325:
316:
199:₹0 - ₹2.5 lakh
183:Old Tax Regime
166:
157:
148:
119:
79:
66:
35:is a scheme of
17:
12:
11:
5:
1150:
1140:
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333:
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278:Not Applicable
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180:New Tax Regime
178:
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165:
162:
156:
153:
147:
144:
118:
115:
103:Income Tax Act
78:
75:
65:
62:
33:New Tax Regime
15:
9:
6:
4:
3:
2:
1149:
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921:
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869:
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837:
822:
821:Deccan Herald
818:
811:
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734:
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87:
83:
74:
72:
61:
59:
55:
51:
46:
41:
38:
34:
26:
21:
1137:Income taxes
1109:. Retrieved
1105:
1095:
1083:. Retrieved
1081:. 1 Feb 2021
1078:
1069:
1057:. Retrieved
1053:
1044:
1032:. Retrieved
1027:
1018:
1006:. Retrieved
1001:
992:
980:. Retrieved
975:
966:
954:. Retrieved
949:
940:
928:. Retrieved
923:
914:
902:. Retrieved
898:
888:
876:. Retrieved
872:Zee Business
871:
862:
850:. Retrieved
845:
836:
824:. Retrieved
820:
810:
798:. Retrieved
793:
784:
772:. Retrieved
768:
759:
747:. Retrieved
742:
733:
721:. Retrieved
716:
707:
695:. Retrieved
691:
681:
669:. Retrieved
665:Moneycontrol
664:
655:
643:. Retrieved
639:
629:
617:. Retrieved
612:
603:
591:. Retrieved
587:
562:. Retrieved
557:
548:
536:. Retrieved
534:. 1 Feb 2023
527:
501:. Retrieved
497:
487:
475:. Retrieved
471:cnbctv18.com
470:
446:. Retrieved
444:. 1 Feb 2021
441:
432:
420:. Retrieved
412:
387:
384:
375:
370:
368:
364:NSE Nifty 50
356:
349:
335:
326:
317:
308:
304:
291:
277:
276:
271:
255:
239:
223:
207:
196:₹0 - ₹3 lakh
191:
158:
149:
120:
111:
107:
94:
88:
84:
80:
67:
42:
32:
30:
1079:India Today
1054:India Today
442:India Today
1126:Categories
528:pib.gov.in
413:pib.gov.in
393:References
381:FY 2021–22
346:FY 2020–21
64:Background
58:Parliament
1111:26 August
1085:24 August
1059:24 August
1034:24 August
1008:24 August
982:24 August
956:24 August
930:24 August
904:24 August
878:24 August
852:24 August
826:24 August
800:24 August
774:24 August
749:24 August
723:24 August
697:24 August
671:24 August
645:24 August
619:24 August
593:24 August
564:26 August
538:24 August
503:24 August
477:24 August
448:24 August
422:24 August
323:Surcharge
132:insurance
93:revealed
950:TheQuint
177:Tax Rate
164:Tax Slab
160:system.
794:Reuters
56:during
341:Impact
155:Rebate
99:IT Act
1113:2023
1106:mint
1087:2023
1061:2023
1036:2023
1010:2023
984:2023
976:mint
958:2023
932:2023
906:2023
880:2023
854:2023
828:2023
802:2023
776:2023
751:2023
725:2023
717:mint
699:2023
692:mint
673:2023
647:2023
621:2023
595:2023
566:2023
558:mint
540:2023
505:2023
498:mint
479:2023
450:2023
424:2023
174:Slab
31:The
352:SBI
292:30%
272:25%
256:20%
240:15%
224:10%
192:NIL
1128::
1104:.
1077:.
1052:.
1026:.
1000:.
974:.
948:.
922:.
897:.
870:.
844:.
819:.
792:.
767:.
741:.
715:.
690:.
663:.
638:.
611:.
586:.
574:^
556:.
526:.
513:^
496:.
469:.
458:^
440:.
411:.
400:^
208:5%
105:.
52:,
1115:.
1089:.
1063:.
1038:.
1012:.
986:.
960:.
934:.
908:.
882:.
856:.
830:.
804:.
778:.
753:.
727:.
701:.
675:.
649:.
623:.
597:.
568:.
542:.
507:.
481:.
452:.
426:.
288:7
268:6
252:5
236:4
220:3
204:2
188:1
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
