Budget 2023: no tax on income up to Rs 7 lakh

Union Finance Minister Nirmala Sitharaman on Wednesday announced an increase in the income tax rebate limit on the union budget 2023. The new announcement defines that those who have income up to 7 lakhs no need to pay any tax. Previously the limit was 5 lakh.

The Finance Minister also proposed to change the tax structure in this regime by reducing the number of tax slabs to 5 and increasing the tax exemption limit to Rs 3 lakh. For pensioners, the finance minister announced extending the benefit of the standard deduction to the new tax regime. Each salaried person with an income of Rs. 15.5 lakhs or more will benefit by Rs. 52,500. The average processing time for income tax returns has been reduced from 93 days to 16 days.