What is the new tax exemption limit? What are the new tax slabs? What has become costly and what’s now cheaper? How much tax do I have to pay now? All your questions and doubts related to the newly released Union Budget 2023 will be answered in this complete guide.
Release of Union Budget 2023-2024
In the Parliament House, Finance Minister Nirmala Sitharaman announced the Indian Union Budget 2023-24 on February 1st. So, in this article, we will be covering all the major changes made with the budget, products that have become costly or cheaper and the market sectors that have been impacted by the release.
All You Need to Know About Union Budget 2023
Top 10 Points Made by FM Nirmala Sitharaman
- With the Union Budget 2023-24, the growth rate of the Indian economy has been set at 7 per cent.
- No income tax is to be paid up to ₹7 Lakh a year, as per the new tax regime.
- The personal income tax slab was reduced to ₹5 lakh.
- Capital expenditures of ₹2.40 Lakh Cr for Indian Railways have been allocated for 2023-24.
- Expenditure amount or allocations for PM Awas Yojana is increased by over ₹79,000 Cr.
- Focus on ‘Green Growth’ this year is on high priority for which the green hydrogen and clean energy storage and transmission will be the key factors.
- Promoting Artificial Intelligence, the team of three experts will be appointed to top education institutes.
- Allocations of ₹4,795.42 Cr promised for the Digital India Programme.
- Major funds were announced for allocations for the growth of digitalization in the Agriculture sector.
- Free food grains supply of one year is promised for all Antyodaya and priority households.
- Subsidy of ₹2,137 Cr in the financial year 2023.
New Proposals Made With Union Budget 2023
- The income Tax Exemption limit increased.
- Major changes made in income tax slabs
- Small savings scheme promised exclusively for women.
- Focus towards Green Growth of India.
- 100 labs to be introduced for the development of 5G apps.
- Promoting AI education in top-level institutes with the installation of excellence centres.
- Boosting up the R&D for Pharma.
- Introduced Agri accelerator fund.
- Promised to install 157 new nursing institutes.
Union Budget 2023 Budget Allocations for Different Sectors
List of all allocated funds to different sectors with budget 2023:
- Rs 234359 crore allocated to Pension.
- Rs 432720 crore will be invested in Defence Sector
- Rs 144214 crore allocated for Agriculture and Allied Activities
- Rs 112899 crore will be allocated to Education.
- Rs 94915 crore promised to the Energy sector.
- Rs 18050 crore promised to be allocated for External Affairs.
- Rs 88956 crore allocated for health sectors.
- Rs 93478 crore of allocations to be made for IT and Telecom.
- Rs 238204 crore will be used for Rural Development.
- Rs 32225 crore will be assigned to Scientific Departments.
- Rs 55080 crore are to be used for social welfare.
- Rs 145000 crore will be granted to the GST Compensation Fund.
- Rs 517034 crore are to be offered to Transport
- Rs 76432 crore will be used for urban development.
- Rs 6,000 crore capital outlay promised for PM Matsya Sampada Yojana. (new sub-scheme)
- Rs 79,000 crore will be allocated to PM Awas Yojana.
What has Become Costlier and What’s now Cheaper with the Release of Union Budget 2023?
A Complete List of Items that Have Become cheaper or Costlier After the Budget Release of 2023-24:
|Camera lenses of mobile phones, laptops & other electronic gadgets
|Platinum, Gold, and Silver Articles
|Lithium Ion Batteries
|Open Cells of TV Panels
|Headphones and Earphones
|Mobile Phone Chargers
|Parts of Electronic Toys
|Cut and Polished Diamonds
New Tax Regime After Budget 2023
Finance Minister Nirmala Sitharaman has increased the rebate limit of ₹5 Lakh to ₹7 Lakh in a financial year.
“Currently, those with income up to ₹ 5 lahks do not pay any income tax in both old and new tax regimes. I propose to increase the rebate limit to ₹ 7 lahks in the new tax regime. Thus, persons in the new tax regime, with income up to ₹ 7 lahks will not have to pay any tax,” said the Finance Minister while presenting the Union Budget 2023.
New Tax Slabs With the Release of Budget 2023:
- Rs 0-3 lakh – no tax
- Rs 3-6 lakh – taxed at 5 per cent
- Rs 6-9 lakh – taxed at 10 per cent
- Rs 9-12 lakh – taxed at 15 per cent
- Rs 12-15 lakh- taxed at 20 per cent
- Above ₹ 15 lakh – taxed at 30 per cent
“I have introduced, in the year 2020, the new personal income tax regime with six income slabs starting from ₹ 2.5 lahks. I propose to change the tax structure in this regime by reducing the number of slabs to five and increasing the tax exemption limit to ₹ 3 lahks,” she further stated.