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India Union Budget 2023-24 - Individual Tax Updates

04 February 2023

With the announcement of Union Budget 2023, the Finance Minister has proposed many changes in the tax provisions relevant for individual tax-payers in India. These proposals aim to simplify the various tax provisions, reduce tax burden, provide ease in administration and better governance.

Key Highlights for Individual Taxpayers

Attractive New Tax Regime: In order to make the New Tax Regime as more attractive to Individual tax-payers, several changes in the scheme have been introduced. Welcome changes such as reduced tax rates, enhanced rebate, standard deduction, reduced & lower surcharge for super rich individual tax payers high net-worth individuals are proposed.

Changes in various exemptions: Changes are proposed to limit certain exemptions to those who genuinely need such benefits. A limit of INR 10 crore is introduced on the maximum exemption available on long term capital gain by re-investment into residential house property. Similarly the exemption for sum received under life insurance policies is restricted to policies where the annual premium is below INR 5,00,000. Leave encashment exemption is proposed to increase from INR 3 lakhs to INR 25 Lakhs

Improvisation in tax payer’s experience: Steps such as deployment of additional joint commissioners for early disposal of appeals, common Income-tax return form and more selective approach for scrutiny of cases are proposed.

We are pleased to share the detailed analysis of Budget 2023 proposals that will have impact on Individual taxpayer. Please download to read.