In the Union Budget for 2023- 24 the government has expanded the scope of full rebate on income tax under the new tax regime to an annual taxable income of Rs 7 lakh from Rs 5 lakh earlier.
This tax regime is likely to benefit taxpayers whose taxable income is between 7-7.5 Lakh . This is done so that only because of marginal increase above 7 Lakh citizens don't end up paying higher taxes. Making marginal income above Rs 7 lakh tax-free will make the New Tax Regime more attractive as there are a large number of taxpayers who will benefit if this proposal goes through.
The expected relief for taxpayers under the New Regime may become effective in the New Financial year starting April 1, 2023.
Report by Shruti Goyal
Graphics by Garima Puri
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