Good News for Income Class Group: Tax rebate limit increased to 7 lakhs

This union budget 2023 has bring in a lot of good news for the salaried class group. Finance Minister Nirmala Sitharaman announced an increase in the income tax rebate limit from Rs 5 lakh to Rs 7 lakh under the new tax regime. The tax slabs has been reduced further, the bifurcation includes; 

  • 0-3 lakhs- zero percent
  • 3 lakhs-6 lakhs-5%
  • 6 lakhs-9 lakhs-10%
  • 9 lakhs-12 lakhs-15%
  • 12 lakhs-15 lakhs-20%
  • Above 15 lakhs- 30%

She added that the new tax regime will now be the default tax regime. The government has estimated the fiscal deficit for 2023-24 at 5.9 per cent of the GDP, Finance Minister Nirmala Sitharaman said while presenting Union Budget 2023-24 in Parliament. The FM added that the government remains committed to bringing the fiscal deficit down to 4.5 per cent of the GDP by 2025-26. The capital investment outlay has been increased by 33 per cent to Rs 10 lakh crore, which will account for 3.3 per cent of the GDP. In a boost for states, the Finance Minister said that the 50-year interest-free loan to state governments will continue for a year more. The NITI Aayog’s state support mission will be continued for three years, she added.

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