Presenting her seventh straight Union budget, Finance Minister Nirmala Sitharaman said the government intends to have a comprehensive review of the Income Tax Act 1961 in a bid to reduce disputes and litigation.
It is proposed to be completed in 6 months, the finance minister said.
Under the new tax regime, the standard deduction has been increased from Rs 50,000 to Rs 75,000, the finance minister said.
Here is the revised tax rate under New Tax Regime
Rs 0-3 lakh - No tax
Rs 3-7 lakh - 5 per ccent
Rs 7-10 lakh - 10 per cent
Rs 10-12 lakh - 15 per cent
Rs 12-15 lakh - 20 per cent
Above Rs 15 lakh - 30 per cent
Sitharaman said 58 per cent of corporate tax have come from simplified tax regime in FY23, and added that more than two-thirds of individuals availed of the new income tax regime.
She added that two tax exemption regimes for charitable trusts will be merged into one.
Besides, the government will also come out with SoP (standard operating procedure) for TDS defaults and simplify and rationalise compounding of such offences.
