In a move that could incentivise more taxpayers to move to the concessional income tax regime, the finance ministry has introduced a marginal relief for those earning just a little more than Rs 7 lakh a year. This would ensure that their tax burden won’t include paying any tax, like others below the Rs 7-lakh income threshold.

The change has been introduced through the amendments to the Finance Bill, 2023 that was passed by the Lok Sabha on Friday. Individual taxpayers having borderline income will get a deduction of income tax payable in excess of the differential income above Rs 7 lakh.