Budget 2023: How Nirmala Sitharaman attempted to simplify tax experience
Live MintThe Hon’ble Finance Minister presented today the last full-fledged Budget 2023 under the Modi 2.0 Government. Further, with the proposals, it is apparent that the Government wants to simplify the tax experience to its taxpayers by proposing a common tax return form, bringing reforms to litigation and also giving prominence to the new tax regime which does not require the individuals claim any deductions or exemptions rather pay tax at the reduced tax rates. With this, Key personal tax proposals are as below: Tax Rates Changes proposed under the new personal tax regime are: Basic exemption limit enhanced from INR 2.5 lakhs to INR 3 lakhs. Rebate on taxable income has been proposed to be enhanced from INR 5 lakhs to INR 7 lakhs resulting in a tax saving of INR 33,800. Other sources Proceeds from insurance premium policies other than ULIPs taken post 01 April 2023 having premium in excess of INR 5 lakhs will be taxable as income from other sources without any 80C deductions leading to additional tax impact for the taxpayers.