NEW DELHI: The taxpayers eagerly await what the finance minister has in store for them as Budget 2023 approaches. One of the many hopes is that the government will increase the concessional tax regime's (CTR) appeal to encourage taxpayers to use it. It's also referred to as the "new tax regime" in popular culture.

Budget 2020 introduced the CTR, or new tax regime, which applies to both individuals and HUFs (Hindu undivided families). Its goal was to assist individual taxpayers in making the transition to a somewhat lower rate and a less complicated tax structure without the complexity of numerous deductions and exemptions seen in the current tax system. From FY2020–21, taxpayers had the option of the new CTR or the previous tax structure.

Taxpayers are subject to lower tax rates under the CTR than under the previous tax system (see table), but they are required to give up the majority of the deductions and exemptions that were previously available to them. Instances of some major deductions and exemptions that tax payers lose are standard deduction, leave travel allowance exemption, deduction of interest on home loan, and deductions under Chapter VI-A (including Sections 80C, 80D etc. except Section 80CCD(2)) as per the Clear website.

Finance Ministry to stick to privatisation of CPSEs next fiscal

Govt to convene all parties meet today ahead of Parliament's Budget Session

PM Modi calls cabinet meeting ahead of Union Budget