New Budget 2023: The Keypoints, Tax Regime, and Other Points-
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:
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 Fiscal Deficit Roadmap:
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.
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Keypoint budget 2023: The Highlights
- The Union Budget 2023 FY 23 highlights a growth rate of 7%, with the government proposing to spend Rs. 2200 crore for high-value horticulture.
- Additionally, the government has targeted increasing the agri-credit to Rs. 20 lakh crore.
- The budget also proposed to increase the PM housing outlay to Rs 79000 Cr from the current Rs 65000 Cr. This will ensure the government’s vision of “Housing for All.” This will create jobs in the real estate sector and will boost economic growth.
- The New Budget also allocated Rs 15000 Cr for the welfare of vulnerable tribal groups in the country. This will be spent on developing infrastructure facilities and health care services in tribal areas. This move is expected to help the tribals access quality health care and basic amenities.
- The New Budget 2023 also focuses on promoting digital payments, which is expected to benefit small businesses and reduce the cost of transactions. The budget also proposed setting up a National Bank for Financing Infrastructure and Development (NBFI) to finance infrastructure projects. This will help increase the flow of funds to infrastructure projects and boost the overall development of the economy.
New Budget 2023: Is it a Relief?
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.