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:
Income Tax payers:
•No changes in the old tax regime.
•New tax regime to become the default tax regime. However, citizens can opt for the old tax regime.
•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. RsRs 3-6 lakhs: 5% Rs 6-9 lakhs: 10 Rs 9-12 lakhs: 15 Rs 12-15 lakhs: 20% Rs over 15 Lakh:30%.
•An individual with annual income of Rs 9 lakh will have to pay only Rs 45,000 in taxes: FM Sitharaman
•Income of Rs 15 lakh will fetch Rs 1.5 lakh tax, down from Rs 1.87 lakh
•A Rs 50,000 standard deduction to taxpayers has been introduced under the new regime.
What gets cheaper and what's get costlier:
Cheaper
Mobile Phones, T.V, Shrimp feed, Lab-grown diamonds, Machinery for lithium ion batteries, Raw materials for EV industry.
Costlier
Cigarette, Silver, Compounded rubber, Imitation Jewellery, Articles made from gold bars, Imported bicycles and toys, Imported kitchen electric chimney,, Imported luxury cars and EVs.
Indirect Taxes:
•16% tax hike on certain cigarettes. •New cooperatives that commence manufacturing till March, 2024 to get lower tax rate of 15%. •Basic customs duty on crude, glycerine reduced to 2.5%. •Import duty on silver bars hiked to align it with gold, platinum. •Extend customs duty cut on imports of parts of mobile phones by 1 year.
Saving schemes announcements
•Maximum deposit limit for Senior Citizen Savings Scheme to be enhanced to Rs 30 lakh from Rs 15 lakh.
•Monthly Income Scheme limit doubled to Rs 9 lakh and Rs 15 lakh for joint accounts.
•One-time new saving scheme Mahila Samman Saving Certificate for women to be made available for 2 years up to March 2025.
Clean Energy:
•Rs 35,000 crores priority capital for the energy transition. •Green credit programme will be notified under the Environment Protection Actt. •Battery storage to get viability gap funding. •Govt to support setting up of battery energy storage of 4,000 MwH.
Gems and Jewellery:
•To encourage the indigenous production of lab-grown diamonds, a research and development grant is to be provided to one of the IITs for five years.
•Proposal to review customs duty of lab-grown diamonds to be included in Part-B of Budget document.
Health:
•Health sector has been allocated Rs 89,155 crore in the Union Budget.
•Mission to eliminate sickle cell anaemia by 2047
•A new programme for research in pharmaceuticals will be formulated and the industry will be encouraged to invest in research.
Education:
•Three centres of excellence for artificial intelligence to be set up in top educational institutions.
•157 new nursing colleges will be established in colocation with the existing 157 medical colleges established since 2014.
•Eklavaya Model Residential Schools to be set up in the next 3 years. The Centre will recruit 38,800 teachers and support staff for 740 schools serving 3.5 lakh tribal students.
Seven priorities of the Budget, 'Saptarishi':
1-Inclusive development.
2-Reaching the last mile.
3-Infrastructure and investment.
4-Unleashing the potential.
5-Green growth.
6-Youth power.
7-Financial sector.
Aims of Budget 2023 to include:
1. Facilitating ample opportunities for citizens, especially youth
2. Providing strong impetus to growth and job creation
3. Strengthening macro-economic stability
4. To aim for the empowerment of women in Budget 2023
5. To enable women self-help groups to reach next stage of economic empowerment
6. To help self-help groups with raw material supply, branding, marketing of products.
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