Stocks which can gain from changes in tax slab and tax rate

The income tax rebate limit increased from Rs 5 lakh to Rs 7 lakh under the new tax regime.

The Union Budget for 2023–2024 was announced on February 1, 2023, by Finance Minister Nirmala Sitharaman. The budget included adjustments to the tax slabs for the new tax regime. For those who are earning between Rs 0 and Rs 3 lakh, the tax rate is 0 per cent, for those who are earning between Rs 3 and Rs 6 lakh, the tax rate is 5 per cent, for those who are earning between Rs 6 and Rs 9 lakh, the tax rate is 10 per cent, for those who are earning between Rs 9 and 12 lakhs, the tax rate is 15 per cent, for those who are earning between Rs 12 lakh and 15 lakh, the tax rate is 20 per cent, and for people earning more than Rs 15 lakh, the tax rate is 30 per cent. The new tax system would take effect by default. Also, the income tax rebate limit got increased from Rs 5 lakh to Rs 7 lakh under the new tax regime.

Consumer durables, automobiles & ancillaries, FMCG, and entertainment are likely to be in the spotlight in the coming year due to the changes in the new tax system and tax slabs, which would further promote consumption in the economy. The company which are likely to be in focus in the coming year are Tata Motors, Mahindra & Mahindra, Hindustan Unilever, PVR, Kirloskar Industries and Voltas Ltd.