Budget insights

Budget 2023 and its impact on individuals

In this podcast, Sonu Iyer, Tax Partner and National Leader – People Advisory Services, EY India, talks to us about the implications of Budget 2023 announcements on individual taxpayers.

Related topics Tax Tax compliance

In conversation with:

Nitesh Mehrotra

Sonu Iyer
EY India Partner and National Leader, People Advisory Services - Tax

Podcast host Silloo Jangalwala, Associate Director, BMC, speaks to Sonu Iyer, tax partner and national leader, People Advisory Services, EY India about the personal income Tax announcements in Union Budget 2023-24.

Background:

In Budget 2023, personal taxation was in the limelight. Fiscal prudence continued to be the guiding mantra for the Finance Minister while staying on the path of simplification and stability in income tax rates. The Finance Minister addressed two key priorities: the demand from the middle class on income tax relief and to make the new tax rate regime more attractive. 

Key takeaways

  • Those with a total income of INR7 lakh will not pay any taxes in the new tax regime. This is expected to boost consumption in the economy and help the low-income category.
  • The concessional tax regime aims to reduce the maximum marginal tax rate to 39% from 42.744% by lowering the surcharge on incomes over INR5 crore to 25%. 
  • Along with other income tax benefits, the government has made the new tax regime more attractive.
  • The number of commissioners is expected to increase, which will expedite disposition of appeals. There is a clear focus on enhancing taxpayer experience. 
The government is clear that this will now be the default tax regime. I personally see this as paving the way toward a simplified and unified tax regime. It may happen next year or after that. But they are moving toward a simplified tax regime with no or minimal deductions, as is the case in the new proposed concessional tax regime.
Sonu Iyer
Partner, People Advisory Services (Tax), EY India

For your convenience, a full text transcript of this podcast is available on the link below:  Read the transcript.

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Duration 16m 49s

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