1. Basic exemption limit increased to Rs. 3 lakh from 2.5 lakhs under the new regime (no change in old regime).
Existing | Proposed |
0 to 2.5 lakh – No tax | 0 to 3 lakh – No tax |
>2.5 lakh to 5 lakh – 5% | >3 lakh to 6 lakh – 5% |
>5 lakh to 7.5 lakh – 10% | >6 lakh to 9 lakh – 10% |
>7.5 lakh to 10 lakh – 15% | >9 lakh to 12 lakh – 15% |
>10 lakh to 12.5 lakh – 20% | >12 lakh to 15 lakh – 20% |
>12.5 lakh to 15 lakh – 25% | >15 lakh – 30% |
>15 lakh – 30% |
2. Income limit for rebate u/s 87A of income tax increased to Rs. 7 lakh from Rs. 5 lakh under the new regime (no change in old regime).
3. Highest surcharge rate on income above Rs. 5 crores to be reduced to 25% from 37% under the new regime (no change in old regime).
4. Standard deduction of Rs. 52,500 has been introduced for salaried class having taxable income more than Rs. 15.5 lakh under the new regime (no change in old regime).
5. Leave encashment exemption limit increased to Rs. 25 lakh from Rs. 3 lakh on on retirement for non-government salaried employees.
6. TDS rate reduced to 20% from 30% on taxable withdrawal of EPF.
7. The new IT regime will be the default tax regime. However, taxpayer can choose the old regime.
8. Limit for investments in Senior Citizen Savings Schemes increased to Rs. 30 lakhs from Rs. 15 lakh.
9. Limit for Presumptive taxes increased to Rs. 3 crore (businesses) and Rs. 75 lakh (professionals).
10. Exemption limited under section 54 & 54F increased to Rs. 10 crore.
11. Mahila Samman Savings Schemes investments can be made without any TDS upto Rs. 2 lakh with interest rate of 7.5% for 2 years (upto 31.03.2025)
12. Post office MIS limit Increased to Rs. 9 lakh from Rs. 4.5 lakh for individual and Rs. 15 lakh from Rs. 9 lakh for joint holdings.
(Also read: Hotels or Restaurants cannot add Service charge automatically or by default in the Food bill)
(Also read: Government sets penalty upto Rs. 50 Lakhs for misleading advertisements and endorsements)
(Also read: 10 best investments for Tax Saving)
Tags: Highlights of Budget 2023-24, Key highlights of Budget 2023-24, Key Direct Tax highlights of Budget 2023-24, Direct Tax highlights of Budget 2023-24, Budget 2023-24