Income tax sops on Budget radar, exemption limit may be raised to Rs 5 lakh

The upcoming Union Budget of 2023-24 may offer taxpayers some relief with a cut in rates and some concessions, CNBC-TV18 has learned from sources. The government is currently looking at several options to make the new income tax regime more taxpayer friendly. As per the information, the Union government is considering reducing tax slabs and increasing the exemption limit to 5 lakh. Further, inclusion of exemptions like home loan interest and standard deduction are also on the radar.

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The announcement of a roadmap to implement a new tax return form for taxpayers' convenience is being considered. A common form under new income tax return can also be implemented. At present, taxpayers of different categories have to fill ITR-1 to ITR-6. However, ITR-7 will continue. Stakeholders have to send their views on the draft by December 15.