Minus exemptions, the new structure might incur a greater tax liability than the older one
In this government’s last full Budget before the general elections in 2024, Minister of Finance Nirmala Sitharaman lavished sops on the salaried middle class, exempting those earning up to Rs 7 lakh per annum from paying any taxes. So far, incomes of Rs 5 lakh were entitled to such a rebate. The minister has also reduced the number of tax slabs, from six to five, and increased the exemption limit to Rs 3 lakh for those who have opted for the new regime (see graphics).