BUDGET HIGHLIGHTS 2023

BUDGET HIGHLIGHTS 2023

Union Finance Minister Nirmala Sitharaman on Wednesday presented the Union Budget 2023, the fifth budget of Modi 2.0. In the last full-fledged Budget before the general elections next year, Nirmala Sitharaman said that the Indian economy is on the right path and heading towards a bright future. In a big boost for taxpayers and economy, Sitharaman announced major changes in tax slabs under the new tax regime and big hike in allocation for railways and capital expenditure.

Here follows a sector-wise detailed reading of the various measures Finance Minister Sitharaman announced in Budget 2023:

1.      Income Tax payers:

2.      No changes in the old tax regime

3.      New tax regime to become the default tax regime. However, citizens can opt for the old tax regime.

4.      No tax on income up to Rs 7.5 lakh a year in new tax regime (with inclusion of standard deduction)

5.      Govt proposes to reduce highest surcharge rate from 37% to 25% in new tax regime

New Income Tax Slabs Under New Tax Regimes:

Rs 0-3 lakh:	Nil
Rs 3-6 lakhs:	5%
Rs 6-9 lakhs:	10%
Rs 9-12 lakhs:	15%
Rs 12-15 lakhs:	20%
Rs Over 15 lakhs:	30%

1.      An individual with annual income of Rs 9 lakh will have to pay only Rs 45,000 in taxes: FM Sitharaman

2.      Income of Rs 15 lakh will fetch Rs 1.5 lakh tax, down from Rs 1.87 lakh

3.      A Rs 50,000 standard deduction to taxpayers has been introduced under the new regime

4.      Payment received from Agniveer Corpus Fund by Agniveers to be exempted

5.      Tax exemption removed in insurance policies with premium over Rs 5 lakh

6.      For online games, govt proposes to provide for TDS and taxability on net winnings at the time of withdrawal or at the end of fiscal

7.      Tax exemption on leave encashment on retirement of non-government salaried employees hiked to Rs 25 lakh from Rs 3 lakh.

8.      A higher limit of Rs 3 crore for TDS on cash withdrawal to be provided to co-operative societies.

9.      Next-generation Common IT Return Form to be rolled out for tax payer convenience

10.  Grievance redressal mechanism to be strengthen.

11.  TDS rate to be reduced from 30 per cent to 20 per cent on taxable portion of EPF withdrawal in non-PAN cases.

What gets cheaper and what's get costlier:

Costlier:

Cigarettes

Silver

Compounded rubber

Imitation Jewellery

Articles made from gold bars

Imported bicycles and toys

Imported kitchen electric chimney

Imported luxury cars and EVs

Cheaper

Mobile phones

TV

Lab-grown diamonds

Shrimp feed

Machinery for lithium ion batteries

Raw materials for EV industry

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