HomeBriefingsUnion Budget 2023: Five Major Changes to the Personal Income Tax Regime

Union Budget 2023: Five Major Changes to the Personal Income Tax Regime



In a major announcement on income tax changes, the government has revealed five significant changes to the personal income tax regime, aimed at benefiting the hard-working middle class.

In detail:

- Advertisement -
  • Increase in rebate limit from 5 lakhs to 7 lakhs.
  • Reduction in the number of slabs from 6 to 5 with an increased tax exemption limit to 3 lakhs.

Tax rate structure: 0-3 lakhs – Nil, 3-6 lakhs – 5%, 6-9 lakhs – 10%, 9-12 lakhs – 15%, 12-15 lakhs – 20%, above 15 lakhs – 30%

  • Standard deduction benefits for the salaried class and pensioners.
  • Reduction in the maximum surcharge rate from 37% to 25%.
  • Increase in tax exemption on leave and cash payment for non-government salaried employees from 3 lakhs to 25 lakhs.
  • New tax regime to become default, but option to opt for old tax regime.
  • Resulting in a revenue loss of 35,000 crores with 37,000 crores in direct taxes and 1000 crores in indirect taxes being foregone, and 3000 crores mobilized.
0-3 LakhNil
3-6 Lakh5%
6-9 Lakh10%
9-12 Lakh15%
12-15 Lakh20%
Above 15 Lakh30%
Tax Slabs


    Get quick snaps of everyday happening, directly in your inbox.

    We don’t spam! Read our privacy policy for more info.

    - Advertisement -
    Krishna Mali
    Krishna Mali
    Founder, CEO & Group Editor of TechGraph.

    More Latest Stories

    Related Stories