New Delhi, June 10 -- The Rs.7 lakh tax rebate introduced under the new tax regime during the Union Budget 2023 was widely viewed as a measure to reduce the tax burden on middle-income taxpayers. But according to ClearTax CEO Archit Gupta, the provision's impact extended far beyond tax savings.

"A simple paycheck was evolving into a portfolio," Gupta said, pointing to a bigger shift in how Indians earn, save and invest.

The top executive noted that data from income tax filings supported this trend. After the rebate was introduced in AY 2024-25, filings in the Rs.5 lakh- Rs.10 lakh income bracket more than doubled. In the same year, more people upgraded to ITR-2, which is meant to be filed by taxpayers with capital gains.

"According to ...