JUST IN
Centre expected to introduce new income tax slabs in Budget 2023: Report
Rupee gains 20 paise to 81.50 against US currency in morning trade
Prepare now, India's population won't be a demographic dividend forever
Taxing times: Businesses face tax heat over deductions claimed for cess
Impasse broken to get India FTA talks back on track, says UK trade minister
Agreements for investments wroth Rs 1,743 cr signed in UP's Lakhimpur Kheri
Budget 2022-23 wishlist: Here're the key challenges in agriculture sector
Govt allows fertiliser entities to file bill of entries for urea imports
Govt to hold separate consultation next month on PIB fact-check rules
Draft IT rule changes will impact press: Indian Newspaper Society
You are here: Home » Economy & Policy » News
Rupee gains 20 paise to 81.50 against US currency in morning trade
icon-arrow-left
Business Standard

Centre expected to introduce new income tax slabs in Budget 2023: Report

Currently, there are six slabs in the new personal income-tax regime, starting with the Rs 2.5-5 lakh income bracket taxed at 5 per cent

Topics
Budget 2023 | Income tax | Taxation

BS Web Team  |  New Delhi 

budget

The Centre is expected to announce a new personal income-tax regime without exemptions in the upcoming Budget, a report by Mint said. Among the many proposals being examined is to add more slabs so that the income range in each slab is narrower.

The Centre has been conducting several rounds of discussions around it. "Extensive discussions have been held, and you have to wait for the Budget for the revised scheme," a person aware of the matter told the newspaper.

The discussions revolved mostly around two aspects. One, on a new income-tax regime which is more acceptable while keeping it simple. Second, the shift by a large number of individuals should be revenue-neutral.

"First, you have to see whether moving to the new system should be revenue-neutral or you can give up, say, Rs 20,000-25,000 crore or so in revenue. Also, the slabs should not be such that it gives a perverse incentive for people to remain in a lower slab," another person aware of the matter said.

Currently, there are six slabs in the new personal income tax regime, starting with the Rs 2.5-5 lakh income bracket taxed at 5 per cent, and it increases to 10 per cent, 15 per cent, 20 per cent and to 25 per cent with each increase in income of Rs 2.5 lakh. Finally, a 30 per cent tax is levied on those earning Rs 15 lakh and above.

The report added that the basic exemption limit could be raised to Rs 5 lakh and the Budget could allow certain deductions like interest payment on home loans etc.

Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

Read our full coverage on Budget 2023

First Published: Wed, January 25 2023. 10:46 IST

`
RECOMMENDED FOR YOU
.