New Delhi: Finance Minister Nirmala Sitharaman Wednesday at 11 AM started budget speech in Parliament.
Sitharaman is presenting her fifth full Budget after she took over as Finance Minister in July 2019.
Here are the highlights of budget 2023:
- No tax on income up to Rs 7 lakh a year in new tax regime, which will be the default from now onwards. Old tax regime scrapped
- Income tax slabs reduced to five. The new tax rates are 0 to ₹ 3 lakhs – nil, ₹ 3 to 6 lakhs – 5%, ₹ 6 to 9 lakhs – 10%, ₹ 9 to 12 lakhs – 15%, ₹ 12 to 15 lakhs – 20% and above ₹ 15 lakhs – 30%
An individual with income of ₹ 15 lakh will have to pay ₹ 1.5 lakh tax, down from ₹ 1.87 lakh under new tax structure - Rs 2.4 lakh crore for railways, the highest ever
- Agricultural credit target increased to ₹ 20 lakh crore
- Allocation for PM Awas Yojna increased by 66% to over ₹ 79,000 crore
- Capital investment outlay to be raised by 33% to ₹ 10 lakh crore, to be 3.3% of GDP in fiscal 2024
- Effective capital expenditure of centre to be ₹ 13.7 lakh crore
- Fiscal deficit target for fiscal 2024 is 5.9%, aim to reduce it to 4.5% by 2025-26. Fiscal deficit for fiscal 23 in line with 6.4% target. To finance fiscal deficit in 2023-24, net market borrowing from dated securities estimated at ₹ 11.8 lakh crore
- Tax receipts for next fiscal budgeted at ₹ 23.3 lakh crore
- 157 new nursing colleges in core locations, mission to eliminate sickle cell anaemia by 2047
- Rs 15,000 crore over next three years for safe housing, sanitation, drinking water, and electricity for scheduled tribes
- All cities and towns will be enabled for 100 percent transition of sewers and septic tanks from manhole to machine hole mode
- 38,800 teachers will be hired for Ekalavya Model Residential Schools in next 3 years
- 3 centres for excellence for AI will be set up in top educational institutes with the goal “Make AI in India”, “Make AI Work For India”
- Computerisation of 63,000 credit societies with ₹ 2,516 crore
- 100 labs to develop apps using 5g services to be set up in engineering institutions
- Green Hydrogen Mission for reduced dependence on fossil fuel: ₹ 35,000 crore for energy transition to net-zero emission goals
- Battery energy storage systems of 4000 MWh will be supported
- For ease of doing business, 39,000 compliances reduced
- 30 Skill India international centres across different states will be set up
- 1 crore farmers will get assistance to adopt natural farming
- 100 critical transport projects — 50 additional airports, heliports, etc will be revived
- For tourism, 50 destinations will be selected through challenge mode
- Mahila Samman Savings Certificate will be made available for two years, deposits of up to 2 lakh at 7.5% interest
- Senior citizens savings scheme cap increased from ₹ 15 lakh to ₹ 30 lakh
- Monthly Income Scheme limit doubled to ₹ 9 lakh and ₹ 15 lakh for joint accounts
- The revamped Credit Guarantee Scheme for MSME sector will take effect from April 1, 2023 with an infusion of ₹ 9,000 crore
- Basic customs duty rates to be reduced from 21% to 13%
- Taxes on cigarettes hiked by 16 percent
- Basic import duty on compounded rubber increased to 25 percent from 10 percent
- Customs duty on kitchen electric chimney increased to 15 percent from 7.5 percent
- Tax portal processed 6.5 crore returns, processing time cut; intend to strengthen grievance redressal mechanism
- Government proposes to increase limit for presumptive taxation for MSMEs and certain professionals to ₹ 3 crore and ₹ 75 lakh, respectively
- Rs 5,300 crore assistance for Upper Bhadra project in poll-bound Karnataka.
- New cooperatives that commence manufacturing activity till March 2024 to attract lower tax rate of 15 percent
- Government to provide higher limit of ₹ 2 lakh per member for cash deposit and loans by Primary Agricultural Credit Societies
- Highest surcharge rate reduced from 37 percent to 25 percent in new tax regime
- Net tax revenue foregone because of changes in direct and indirect taxes is ₹ 35,000 crore
- Government proposes to cap deductions from capital gains on investments in residential houses to ₹ 10 crore
Also Read – Union Cabinet approves Budget 2023-24
PTI
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