Finance minister Nirmala Sitharaman could go for a rejig of tax slabs in Budget 2023 to make the new income tax regime more attractive. The rejig could also signal a gradual movement towards an exemption-less tax regime in future.
The new regime has remained unpopular and is likely to see some of the important exemptions become a part of it.
Experts have called for inclusion of standard deduction and housing loan interest in the new regime.
At present, tax payers can choose between the two regimes to pay their taxes.
The Union Budget for 2023-24 is expected to bring some changes to the new income tax regime as experts call for moving towards an exemption-less regime.
Here's a quick comparison of the new and old tax regime:
| Annual Income | Existing regime | New regime |
| up to Rs 2,50,000 | Nil | Nil |
| 2,50,000-5,00,000 | 5% | 5% |
| 5,00,000-7,50,000 | 20% | 10% |
| 7,50,000-10,00,000 | 20% | 15% |
| 10,00,000-12,50,000 | 30% | 20% |
| 12,50,000-15,00,000 | 30% | 25% |
| Above 15,00,000 | 30% | 30% |
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