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February 1, 2023
A big relief for Middle Class as the FM Announces reduction in the Income Tax Rates- Key Highlights of Union Budget 2023-24
Finance Minister Nirmala Sitharaman presented the Union Budget for 2023-24 on the 1st of February, 2023 amid a lot of speculations and expectations as to what’s in store for the middle class. This was the Modi government’s last full-year Budget before the Lok Sabha elections in 2024. The Union Budget- 2023 mainly focused on the country’s infrastructure sector. The Finance Minister also focused on including a record outlay for the railway along with that provided major tax benefits to the middle class and to the salaried middle class. Let’s have a gaze at the major and key highlights of the Union Budget 2023.
Highlights of the Union Budget 2023
Major Changes in Personal Taxes
- Income Tax Rebate limit extended from 5 lacs to 7 lacs under the new tax regime.
- Major Changes in the tax slab & Income tax rates under the new tax regime only:
Tax Slab |
Tax rate |
Rs 0 to 3 lacs |
Nil |
Rs 3 to 6 lacs |
5% |
Rs 6 to 9 lacs |
10% |
Rs 9 to 12 lacs |
15% |
Rs 12 to 15 lacs |
20% |
More than 15 lacs |
30% |
- Highest surcharge reduced from 37% to 25%, MMTR 39% under the new tax regime.
- Leave encashment exemption in private companies increased from 3 lacs to 25 lacs.
- New tax regime shall be a default tax regime now, however, the old tax regime is also to be continued.
Whooping boost to the Agricultural sector
- There are certain announcements made by the Finance Minister to give a boost to the agricultural sector as a whole.
- Affordable solutions for the challenges faced by the farmers shall be provided.
- To transform the agricultural sector, the FM announced an Agriculture Accelerator Fund.
- There will be an increase of Rs 20 Lacs Crores to the agricultural credit target focusing mainly on animal husbandry, dairy and fisheries.
Health, Education and Skills
- In co-location with the existing 157 medical colleges, 157 new nursing colleges will be established.
- For research by public and private medical college faculties and private sector research and development (R&D) teams, ICMR labs will be provided in order to encourage collaborative research and innovation.
- A new programme will be launched to promote research and innovation in pharmaceuticals.
- With an objective of facilitating the availability of quality books across geographies, languages, genres and levels and device-agnostic accessibility, a National Digital Library for children and adolescents will be established.
Allocation of Funds
Ministry |
Allocation of Funds |
Defense |
5.94 Lacs Crores |
Road Transport and Highways |
2.70 lacs Crores |
Railways |
2.41 Lacs Crores |
Consumer Affairs, Food and Public Distributions |
2. 06 Lacs Crores |
Home Affairs |
1.96 Lacs Crores |
Rural Development |
1.60 Lacs Crores |
Agricultural and Farmer’s Welfare |
1.25 Lacs Crores |
Communications |
1.23 Lacs Crores |
Education |
1.12 Lacs Crores |
Health |
88,956 Crores |
In conclusion, the Union Budget 2023 focuses on reviving the Indian economy, improving the healthcare sector, promoting digitalization, boosting agriculture and rural development, and providing tax relief to individuals.
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