Union Budget 2023: Govt Revises Tax Slabs and Tax Structure for New Income Tax Regime [Read Finance Bill]

The Finance Minister Nirmala Sitharaman has presented the Union Budget 2023, by the budget speech. The budget proposed minor changes to tax policies, allocation of government spending, and initiatives aimed at boosting the economy and addressing social and environmental issues.

The budget bill proposed a major reworking of the New Income tax regime along with the tax structure.

The following revisions were proposed in the new income tax regime.

The following expectations were raised by taxpayers prior to the budget in regard to the tax schemes: –

1. Increase in the threshold of Rs. 15 Lakhs for the highest slab rate to Rs. 20 Lakhs.
2. Waiver of cess and surcharges for lower categories of high income earners.
3. Moving tuition fees of children from a separate provision from the Section 80C deductions, which already covers a lot of other investments/expenses to the tune of Rs. 1.5 Lakhs.
4. Increase in health insurance tax exemption limit under Section 80D.
5. With the advent of Electronic Vehicles (EVs), the Government could also introduce deduction on purchase of the same, apart from subsidies already in place, as a gesture to promote green transportation.
6. An increased deduction in lieu of House Rent Allowance (HRA) or total house rent payable was also recommended as the rents are higher after the Covid-19 pandemic.

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