Union Budget 2023-24 Updates
Budget 2023, Union Finance Minister Nirmala Sitharaman on Wednesday surprised the salaried middle class with major rejig in income tax slabs, raising rebate from Rs 5 lakh to Rs 7 under both old and new tax regimes. The FM also proposed to change the tax structure in this regime by reducing the number of slabs to five and increasing the tax exemption limit to Rs 3 lakh.
The FM also proposed to extend the benefit of standard deduction to the new tax regime. Additionally, the FM proposed to reduce the highest surcharge rate from 37 per cent to 25 per cent in the new tax regime. This would result in reduction of the maximum tax rate to 39 per cent. The FM has made the new income tax regime as the default tax regime with an option for citizens to avail the benefit of the old tax regime.
The new slabs under the new Income Tax regime are:
Rs 0-3 Lakhs – Nil
Rs 3-6 Lakhs – 5%
Rs 6-9 Lakhs – 10%
Rs 9-12 Lakhs – 15%
Rs 12-15 Lakhs – 20%
Above Rs 15 Lakhs – 30%
This was the last full budget of the Narendra Modi government before the General Elections 2024 and several state assembly elections. FM Sitharaman had her task cut out as she had to carefully balance populist expectations along with fiscal prudence in a challenging global macro environment with signs of slowdown already seen in the tech sector across the world with job layoffs et al. The Finance Minister presented the Union Budget 2023-24 speech through a tab, in paperless form, like the previous two Budgets.
The FM also proposed to extend the benefit of standard deduction to the new tax regime. Additionally, the FM proposed to reduce the highest surcharge rate from 37 per cent to 25 per cent in the new tax regime. This would result in reduction of the maximum tax rate to 39 per cent. The FM has made the new income tax regime as the default tax regime with an option for citizens to avail the benefit of the old tax regime.
Union Budget 2023: Reactions
“The honourable Finance Minister’s move to launch a unified Skill India digital platform to empower the youth and focus on job training through the formulation of the National Education Policy in the Budget 2023 is highly commendable.
The focus on youth and the future of India by macroeconomic stability and a visionary focus on technology advancement and setting up AI centers in top education centres is a great step forward. The budget sets a hopeful tone for India’s GDP and economic growth with special emphasis on vocational, secondary and specialized higher education, as India’s GDP is projected to grow at a rate of 6-6.8% in the 2023-24 fiscal year. The FM’s allocations is a practical approach in the 2023 budget which aims to boost the country’s economy with focus on Make in India, women and youth empowerment.”
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