New Delhi: Finance Minister Nirmala Sitharaman has made major announcements regarding the income tax during the Union Budget 2023-24 presentation in Parliament. The income tax rebate limit has been increased from Rs 5 lakh to Rs 7 lakh and the new tax regime will now be the default option. The number of tax slabs has also been reduced, with tax-free income up to Rs 3 lakh, 5% tax for income between Rs 3-5 lakh, 10% tax for income between Rs 6-9 lakh, 20% tax for income between Rs 12-15 lakh, and 30% tax for income above Rs 15 lakh. The FM also highlighted the government's commitment to reducing the fiscal deficit, which is estimated at 5.9% of the GDP for 2023-24, with the aim of bringing it down to 4.5% of the GDP by 2025-26. Additionally, the capital investment outlay has been increased by 33% to Rs 10 lakh crore, accounting for 3.3% of the GDP.
