The government is undertaking an exercise to refine the new tax regime, aiming to enhance its simplicity and appeal to the salaried demographic. This effort may involve rationalising tax slabs and adjusting rates.
Amid the Budget preparation, the revenue department is assessing the feasibility of further adjustments to maximise benefits for salaried individuals. “Gradually transitioning to a predictable tax regime with minimal rates and phasing out deductions and exemptions have always been the intention, and will be a central focus in the review process, which could potentially include changes in tax rates,” an official familiar with discussions