Will there be any tax breaks under the Budget 2023 to make the New Income Tax Regime more attractive?

The Union Budget 2023-24 has introduced the new tax regime for individual taxpayers from February 1, 2023. The new tax regime introduces six tax slabs with different tax rates.

The new tax regime slabs are:

• Between Rs 0-3 lakh: no tax
• Between Rs 3-6 lakh: taxed at 5%
• Between Rs 6-9 lakh: taxed at 10%
• Between Rs 9-12 lakh: taxed at 15%
• Between Rs 12-15 lakh: taxed at 20%
• Above Rs 15 lakh: taxed at 30%

The old tax regime slabs are:

• Between Rs 0-2.5lakh: no tax
• Between Rs 2.5-5lakh: taxed at 5%
• Between Rs 5-10lakh: taxed at 20%
• Above Rs 10 lakh: taxed at 30%

However, the new tax regime is a default scheme.