In the Union Budget 2023, Finance Minister Nirmala Sitharaman announced significant adjustments to the new income tax regime, including reduced tax rates and a tax rebate on annual income up to ₹7 lakh. The enhancement of the rebate for individuals subject to the new income tax regime from ₹5 lakh to ₹7 lakh was the most significant of the main announcements made by the finance minister. Additionally, FM announced a modification to the tax structure under the new tax regime by decreasing the number of tax slabs to five and raising the tax exemption threshold to ₹3 lakh. In contrast to the new income tax regime, the old tax structure’s tax slabs were not altered by the budget 2023. “We are also making the new income tax regime as the default tax regime. However, citizens will continue to have the option to avail the benefit of the old tax regime,” said FM Nirmala Sitharaman during her budget speech.