Budget 2023: New Income Tax regime standard deduction - check amount
Budget 2023: FM has tweaked the concessional tax regime, which was originally introduced in 2020-21, by hiking the tax exemption limit by Rs 50,000 to Rs 3 lakh
New Income Tax regime standard deduction: Finance Minister Nirmala Sitharaman on Wednesday allowed a Rs 50,000 standard deduction to taxpayers under the new regime. Besides, she also tweaked the slabs and hiked the rebate to Rs 7 lakh from Rs 5 lakh.
In the new tax regime, assessees cannot claim deductions or exemptions on their investments.
She tweaked the concessional tax regime, which was originally introduced in 2020-21, by hiking the tax exemption limit by Rs 50,000 to Rs 3 lakh and reducing the number of slabs to five. In the Budget for 2023-24, Sitharaman said currently individuals with a total income of up to Rs 5 lakh do not pay any tax due to rebate under both the old and new regimes.
"It is proposed to increase the rebate for the resident individual under the new regime so that they do not pay tax if their total income is up to Rs 7 lakh," Sitharaman said.
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