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:

• 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

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.