New Delhi [India], February 1 (ANI): Chairman of Boston Consulting Group Janmejaya Sinha lauded the Union Budget 2023 presented by Finance Minister Niramala Sitharaman, calling it "clean, simple, clear and solid".
Speaking on the Personal Income Tax rebate in the new tax regime, Sinha said, "Middle class will benefit most from this year's budget. Consumption will increase due to this move and the economy will further boost."
He further added that everyone will be benefitted from the move calling the budget "clean, simple, clear and solid."
The Finance Minister declared five major announcements in the new tax regime including an increase in the income tax rebate limit from Rs 5 lakh to Rs 7 lakh stating that the new tax regime will now be the default tax regime.
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.
On personal income tax, the FM announced that "Tax for income of Rs 0-Rs 3 lakh is nil, for income above Rs 3 lakh and up to Rs 5 lakh will be taxed at 5 per cent, for income of above Rs 6 lakh and up to Rs 9 lakh will be taxed at 10 per cent and for income above Rs 12 lakh and up to Rs 15 lakh to be taxed at 20 per cent and above 15 lakh at Rs 30 per cent."
The finance minister also said: "The limit of Rs 3 lakh for tax exemption on leave encashment on government salaried employees. That was set in 2002 when government salaries were lower and is now being raised to Rs 25 lakh."
She also added, "The new income tax regime will now become the default option, but people will still have the option to go for earlier regime."
The average processing time for income tax returns has been reduced from 93 days to 16 days. (ANI)