Union Budget 2023 has proposed to change the definition of "specified person" in sections 206AB and 206CCA of the Income tax Act, 1961, to exclude a person who is not required to submit a return of income for the assessment year relevant to the said previous year.

Current income tax laws mandate that these winnings are taxed according to the income tax slab applicable to the income of the individual.

The Budget seems to attract and enhance the common taxpayers' sentiments by providing numerous tax benefits. However, one needs to be mindful that these benefits are only available to taxpayers who do not choose to file the tax return under the old tax regime. The tax slabs and rates under the old tax regime remain the same.

The deduction and rebate in the new tax regime besides the tweak in income tax slab for individual taxpayers like salaried, pensioner and family pensioners will now be enable them to pay zero tax if their annual income is Rs 7.5 lakh. The income level at which non salaried people will have to pay nil tax is Rs 7 lakh.

An individual can claim tax exemption under section 10(13A) of the Income-tax Act, 1961. Usually, HRA is part of the CTC of an employee.

People, who fall in higher income tax brackets and are eligible for various exemptions and deductions under the old tax regime, typically prefer the old tax regime. While the next tax regime will become the default regime, however the old tax regime will continue and people who wish to receive old exemptions and deductions can opt for the old one.

Here is an analysis showing the maximum deductions a salaried individual needs to claim in the old tax regime so that the income tax payable remains the same under the revised new income tax slabs announced in Budget 2023.

These steps will ensure that you don’t face any problems on the tax front.

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