Oct 31, 2023
The New Budget 2023, presented by Finance Minister Niramala Sitharaman, has brought about significant changes in the income tax regime for the citizens of India. The changes aim to provide tax relief to those in the lower income bracket and increase the tax burden for those in the higher income bracket.
The Default Income Tax Regime presented in the New Budget 2023 exempts people who earn below Rs. 3 lakhs from paying any tax. On the other hand, those earning above Rs. 7 lakhs are required to pay income tax. In between these two income brackets, the tax rate is determined depending on the slab the taxpayer falls into.
The Budget 2023 has also increased the rebate limit for those earning up to Rs. 5 lakhs. This means that people earning up to Rs. 5 lakhs will be exempt from paying any tax. The rebate limit has been increased from Rs. 3 lakhs to Rs. 5 lakhs. This is a major relief to those earning below Rs. 5 lakhs. The New Budget 2023 has also reduced the tax rate for that earning between Rs. 5 lakhs and Rs. 7 lakhs. This will provide some relief to those in the middle class.
The New Budget 2023 has also changed the Dividend Distribution Tax (DDT). The 2023 budget strongly focuses on developing the rural sector, infrastructure, and social schemes, as well as offering some relief to the middle class. The Finance Minister stayed with the fiscal deficit roadmap for this financial year, aiming for a 5.9% deficit for the coming year.
The New Budget 2023 has proposed a capital expenditure of Rs. 10 lakh crore for FY24, which is up 33% from this fiscal year. This proposed plan has been a boon to the Indian economy as it focuses on infrastructure and development projects.
Read Also: Gaurav Taneja Drew India’s Map in The Sky
Overall, the New Budget 2023 presented by Finance Minister Niramala Sitharaman has brought about some major changes to India's default income tax regime. The changes aim to provide relief to those in the lower income bracket while increasing the tax burden for those in the higher income bracket. The New Budget 2023 has also changed the Dividend Distribution Tax and the corporate tax rate to benefit shareholders and small and medium-sized enterprises.
The Budget The New Budget 2023 aims to revive the Indian economy by boosting investment and creating jobs. Through this budget, the government has taken several steps to ensure the country's economic sustainability while providing the necessary support to the vulnerable sections of society.