Income Tax Budget 2023 FAQs

Will Budget 2023 rejig income tax slabs?

"The tax rate for individuals has not been changed since the financial year 2017-18 (new tax regime bought in the financial year 2020-21). Hence, to give more purchasing power to individuals and some relief to the employed taxpayers, the highest tax rate of 30 per cent should be reduced to 25 per cent and the threshold limit for the highest tax rate be increased from Rs 10 lakh to Rs 20 lakh. Therefore, the proposed highest slab rate (including surcharge and cess) can be reduced to 35.62 per cent," said Tapati Ghose, Partner, Deloitte India.

What Changes Union Budget 2023 can bring to section 80C?

The deduction limit under section 80C of the Income-tax Act, 1961, should be increased from the existing Rs 1.5 lakh to Rs 2.5 lakh in Budget 2023, the Institute of Chartered Accountants of India (ICAI) suggested in its Pre-Budget Memorandum 2023. A hike in the deduction limit of section 80C would "provide savings opportunities to the public at large," ICAI mentioned.

How does Budget 2023 simplify LTCG and STCG Tax?

Union Budget 2023 should simplify the capital gains tax system by introducing a more rationalised tax structure, said experts."To simplify capital gains taxation, capital assets could be categorised in a maximum of two to three categories and tax rates could be made uniform across these categories, thus reducing the disparity that exists in tax rates for similar asset classes," Tapati Ghose, Partner, Deloitte India.