Income Tax in Budget 2023 Highlights: Sitharaman concludes speech, 5 announcements made on personal income tax

Income Tax in Budget 2023 LIVE: This was the last full budget of the Modi government before next year’s parliamentary elections, slated for April-May 2024.

On Wednesday, Union finance minister Nirmala Sitharaman made as many as five personal income tax-related announcements, in what was her fifth consecutive budget speech. No announcement on income tax was made in last year's budget.

UNION BUDGET 2023: FULL COVERAGE

Of these five, three announcements stood out. First, under the new tax regime (introduced in budget 2020), those earning up to ₹7 lakh per year, will not to have pay any tax. Second, the new regime will be the default tax regime; the old one, however. has not been discontinued, and citizens can continue to use either.

Third, the number of slabs in the new regime has been reduced to five, from six.

Follow all the updates here:

• Feb 01, 2023 03:41 PM IST

  ‘By increasing threshold limit of no tax…’: Sachin Vora, Assetz Property

  "The budget brings relief to millions of families who struggled during the Covid-19 pandemic and its aftermath of inflation by increasing the threshold limit of no tax up to an income of Rs. 7 lacs per year, thereby increasing disposable income": Sachin Vora, CFO, Assetz Property Group

• Feb 01, 2023 03:15 PM IST

  ‘Enhancement of income tax rebate…’: Yogesh Agarwal, Onsurity Technologies

  “This is a Budget that’s truly designed for India’s aam aadmi, one that promotes growth and consumption. Enhancement of income tax rebate limit from INR 5 lakh to INR 7 lakh will give a great boost to the country’s middle class, including the rapidly growing gig economy. Extending benefits of standard deduction under the new tax regime is a move that will give huge respite to salaried individuals”: Yogesh Agarwal, Founder and CEO, Onsurity Technologies

• Feb 01, 2023 01:26 PM IST

  5 income tax-related announcements in budget

  In budget 2023, the finance minister made a total of five personal income tax-related announcements, after not making any announcement in the 2022 budget. Read

• Feb 01, 2023 12:59 PM IST

  New tax slabs announced

  Budget 2023 Live Updates: 0 to ₹3 lakh: Nil, ₹3 lakh to ₹6 lakh: 5%, ₹6 lakh to ₹9 lakh: 10%, ₹9 lakh to ₹12 lakh: 15%, ₹12 lakh to ₹15 lakh: 20%, and above ₹15 lakh: 30%.

• Feb 01, 2023 12:33 PM IST

  'New tax regime to be default, old to continue as well'

  Budget 2023 Live Updates: Moving forwards, the new tax regime will be default. However, citizens can continue to use the old one too: FM

• Feb 01, 2023 12:28 PM IST

  No tax payment for those earning up to ₹7 lakh per annum: FM

  Budget 2023 Live Updates: In a major announcement, FM says those earning up to ₹7 lakh per annum will not have to pay any tax, under new regime. Limit extended from ₹5 lakh per annum. Read

• Feb 01, 2023 12:13 PM IST

  One-time new small savings scheme announced

  Budget 2023 Live Updates: Finance minister announces Mahila Samman Bachat Patra - one-time small savings scheme for ₹2 lakh deposit for two-year period with fixed interest of 7.5%

• Feb 01, 2023 12:03 PM IST

  Tax slabs: What does industry expect from budget?

  Budget 2023 Live Updates: We can have some rationalisation of income tax slabs to put money in hands of middle class so they spend it towards growth: Naina Lal Kidwai, ex-President, FICCI

• Feb 01, 2023 11:41 AM IST

  HT editor-in-chief's live Twitter analysis of budget

  Budget 2023 Live Updates: HT editor-in-chief Sukumar Ranganathan is doing a LIVE Twitter analysis of budget 2023. Follow the analysis on his Twitter handle or track it here.

• Feb 01, 2023 11:19 AM IST

  Govt won't give any concession to salaried people, says Congress

  Budget 2023 Live Updates: We don't think the govt is giving any concession to salaried people. They are announcing the budget only for eyewash schemes. They did the same in previous budgets. This time, focussing on 2024 elections, some schemes and reliefs may be announced: K Suresh, Congress chief whip in Lok Sabha

• Feb 01, 2023 11:07 AM IST

  Finance minister begins speech

  Budget 2023 Live Updates: Nirmala Sitharaman begins her budget 2023 speech in Lok Sabha, says this is the first budget in ‘Amrit Kaal.’

• Feb 01, 2023 10:51 AM IST

  Nirmala Sitharaman joins ‘exclusive’ club

  Budget 2023 Live Updates: This is the fifth straight budget for the senior BJP leader, making her only the sixth finance minister to achieve this feat. Her predecessor, Arun Jaitley, and former PM Manmohan Singh are also on this list. Read

• Feb 01, 2023 10:28 AM IST

  Nirmala Sitharaman's budget speech shortly

  Budget 2023 Live Updates: The minister has already arrived at Parliament, where she will deliver address in Lok Sabha, at 11 am.

• Feb 01, 2023 10:05 AM IST

  Nirmala Sitharaman's attire for budget 2023

  Budget 2023 Live Updates: For the government's last full budget, the minister is dressed in a bright red saree with a black border. Read

• Feb 01, 2023 09:45 AM IST

  Section 80C of Income Tax Act

  Budget 2023 Live Updates: It came into effect on April 1, 2006, and, under it, taxpayers can claim a deduction of up to ₹1.5 lakh from an individual's total income each year. Read 

• Feb 01, 2023 09:20 AM IST

  How to file ITRs?

  Budget 2023 Live Updates: Each year, income tax returns (ITRs) are to be submitted by July 31, unless the deadline is extended (no extension was given last year). Delayed returns, on the other hand, can be submitted by December 31. In either case, the returns are filed on the e-filing portal.

• Feb 01, 2023 08:53 AM IST

  Slabs unchanged since 2014

  Budget 2023 Live Updates: Income tax slabs have been unchanged since 2014; no announcement on slabs was made in last year's budget.

• Feb 01, 2023 08:33 AM IST

  What are the expectations from Nirmala Sitharaman?

  Budget 2023 Live Updates: What do people expect from the finance minister, as she prepares to unveil the last full budget of this government? Read

• Feb 01, 2023 08:12 AM IST

  What is income tax?

  Budget 2023 Live Updates: It is a direct tax that is levied by the central government on citizens; the Income Tax Act, 1961, mandates collection of this tax by the government. The finance minister may or may not change income slabs and tax rates in budget each year.

• Feb 01, 2023 07:57 AM IST

  How to calculate your personal income tax

  Budget 2023 Live Updates: The Income Tax department offers a simple income tax calculator to help individuals figure out how much income tax they must file when they file their income tax returns for the current assessment year. You can calculate your income tax here

• Feb 01, 2023 07:39 AM IST

  Will the old tax regime be phased out?

  Budget 2023 Live Updates: The government may phase out the old tax regime or could tweak the new tax regime to increase its acceptance among the taxpayers.

• Feb 01, 2023 07:25 AM IST

  Economic survey on tax revenues

  Budget 2023 Live Updates: The gross tax revenues have touched 65 per cent of the Budget estimates at ₹17.81 lakh crore during the first eight months of the current fiscal till November, propelled by corporate and personal income tax mop-up, according to the Economic Survey 2022-23 presented in Parliament on Tuesday.

• Feb 01, 2023 07:14 AM IST

  What Nirmala Sitharaman had said on tax cuts

  Budget 2023 Live Updates: Finance Minister Nirmala Sitharaman’s had recently said that the government is aware of the “pressures of the middle class” adding to the speculation that there might be tweaks in current tax slabs. 

• Feb 01, 2023 07:04 AM IST

  What is the deduction limit on housing loans?

  Budget 2023 Live Updates: The deduction limit for interest on housing loans is around ₹2 lakh.

• Feb 01, 2023 06:55 AM IST

  What is the current contribution to National Pension System (NPS)?

  Budget 2023 Live Updates: At present the voluntary contribution of ₹50,000 is allowed as a deduction u/s 80CCD (1B) of the Act. 

• Feb 01, 2023 06:50 AM IST

  Did you know how many taxpayers are in India?

  Budget 2023 Live Updates: There are more than 80 million taxpayers in India, and salaried employees are the biggest contributors to taxes.

• Feb 01, 2023 06:41 AM IST

  Know about the 7 income tax currently available

  Budget 2023 Live Updates: nnual income up to ₹2.5 lakh is exempt from tax. 

  Those individuals earning between ₹2.5 lakh and ₹5 lakh have to pay 5 percent tax. 

  Income between ₹5 and 7.5 lakh is taxed at 10 percent, while those between ₹7.5 and 10 lakh at 15 percent.

  Those earning between ₹10 and 12.5 lakh have to pay tax at the rate of 20 percent, while those between ₹12.5 and ₹15 lakh have to pay at the rate of 25 percent. 

  Income above ₹15 lakh is taxed at 30 percent.

• Feb 01, 2023 06:34 AM IST

  What is the basic income tax exemption limit?

  Budget 2023 Live Updates: Currently, the basic income tax limit is ₹2.5 lakh for individual taxpayers. This exemption is available under both income tax regimes. For senior citizens or those who are over 60 years of age, the basic tax exemption limit is ₹3 lakh under the old tax regime. For super senior citizens or those who are above the age of 80 years), the basic exemption limit is ₹5 lakh under the old tax regime.

• Feb 01, 2023 06:30 AM IST

  What are the expectations on LTCG tax relief?

  Budget 2023 Live Updates: There are expectations that the government may provide long-term capital gains (LTCG) tax relief to retail mutual fund and stock investors in the market through Budget 2023.

• Feb 01, 2023 06:19 AM IST

  Income tax announcements in the budget: Exemption or rebate? 

  Budget 2023 Live Updates: Last year, Centre did not announce any new provision in the Budget 2022-23. But the 2023 Budget could offer relief to individual taxpayers by raising tax exemption or rebate limit. Currently, salaried employees are one of the major tax contributors. Their salary is tax-exempt up to ₹2.5 lakh a year. Income tax is levied on taxpayers on the basis of a slab system.

• Feb 01, 2023 06:06 AM IST

  When will the tax-related announcements be made?

  Budget 2023 Live Updates: Finance Minister Nirmala Sitharaman will present her fifth Budget Speech at 11 am in Parliament. Tax-related announcements are generally made towards the end of the Budget speech.